Missing the Word "And" (Check Made Out to Trustee)

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Question:

If a check is made out to a trustee and the trust but the word and is not there, is this treated as an "or" situation allowing the trustee to cash the check or must the check go through an account in the name of the trust?

Answer:

If the check is payable to an individual in his capacity as trustee, it's payable to the trust, not to the individual. UCC 3-110(c)(2)(i):

(2) If an instrument is payable to:
(i) a trust, an estate, or a person described as trustee or representative of a trust or estate, the instrument is payable to the trustee, the representative, or a successor of either, whether or not the beneficiary or estate is also named;...

When the UCC says the check is payable to the trustee, it means the trustee in that capacity, not to the person himself or herself (or itself) who is the trustee.

First published on BankersOnline.com 6/11/12