Posted by drew on August 26, 2002 at 15:21:54:
Ed,
Jason already got shot down by the warm/smiling teller, that’s why I offered alternative solutions.
Sometimes you have to improvise when you don’t have relationships in place or you’re not a big shot.
-Drew
HELP!! trust problem - Posted by Jason
Posted by Jason on August 19, 2002 at 15:13:05:
I have a bit of a problem. I purchased a property subject to, rehabbed, and just sold it. The property was put into a trust. I am the sole beneficiary. The original trustee that I used was no good (they lived in Illinois, the property and trust are in Missouri, in Mo. the trustee must live in the state). At this point we were getting close to the sale of the property and I didn’t know anyone whom I could use as trustee, so I made myself trustee (I know, defeats the whole purpose of the trust, but my main concern was just getting the equity out). We closed Friday and I received a check to: me, succesor trustee of the such and such trust. Here’s my problem: The bank won’t cash it. They say that I have to have a bank account in the trust’s name and that I also need a tax I.D. number for the trust. I don’t have that. What should I do?? When I put my properties into trust will I have to open an account for each one of them? I know I screwed up?? Where and How did I screw up and how can I fix it??
Thanks
Jason
Check the UCC - Posted by Long Beach Ed
Posted by Long Beach Ed on August 25, 2002 at 07:21:41:
Jason,
I’n no attornue but familiar with the law on this subject in NY. Your problem is governed by the Uniform Commercial Code.
Look it up. In New York, it says:
(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;
Thus, if you were in NY, you shouldnt have a problem.
Long Beach Ed
My favorite bank tellers are… - Posted by drew
Posted by drew on August 20, 2002 at 19:48:54:
…automated! The live ones think too much.
Jason,
You shouldn’t have this problem if the check is made out in your name and title. However, if it’s just made out to the “Such&Such Trust” or “Trustee for the Such&Such Trust” then I can see having to open an account for the trust.
A couple of suggestions if it has your name on it…
Try depositing the check into your account at your bank’s automated teller or send in the deposit by mail. I’ve sent them in by mail before without any problems.
-drew
Re: HELP!! trust problem - Posted by JHyre in Ohio
Posted by JHyre in Ohio on August 20, 2002 at 05:22:37:
Annoying. Open an account, use your social security number as tax ID number, cash check, close account. You could apply for a tax ID number by going to www.irs.gov, filling out Form SS-4 and calling IRS for a number, but your social security number should do. Once you are done with this transaction, see if someone at this or another bank can open ONE account that serves for all of your “trustee” checks- explain that’ll save you AND them a lot of time and hassle.
John Hyre
Re: HELP!! trust problem - Posted by KC Questions
Posted by KC Questions on August 19, 2002 at 22:49:58:
Why don’t you call the title company and have them wire the funds into your business bank account?
They might charge you a small fee, but I think the $15 or $20 they charge would save a lot of headache.
Re: My favorite bank tellers are… - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on August 22, 2002 at 16:38:11:
Good Greif…
For the record my favorite tellers smile without prompting, and know me. A check made out to an entity, with my signature as member, trustee or something like that generally gets cashed without question.
I like tellers with a smile, and a body temperature, and yes I do like small towns. It always helps when the teller adresses you by name before they see the paperwork.
I once took a personal check for $6,500 into my bank on a friday evening (evening hours) and asked the teller if I could find out if the check was good. She told me to have a seat and someone would be right with me. Five minutes or so passed and someone came for me, and took me to the managers office. He had a pile of cash there for me and apologized profusley for running out of big bills. So anyway it pays to be known, and I do like small towns. As for tellers, machinery looses one to nothing for me.