How to cash checks made out to Revocable Living Trusts?

To be able to cash checks made out to a Revocable Living Trust, there are a few things to consider because the trust itself is an entity apart from the individual. Generally, the process goes through the trustee, who manages whatever the trust holds-in this case, the checks. Here's how you can cash checks made out to a Revocable Living Trust:

1. Identify the Trustee: First, you need to find out who the trustee of this Revocable Living Trust is. The trustee is the person or entity responsible for managing the trust's assets. If the grantor is, the person who made the trust- is still alive, he or she is normally the trustee. In case he died, or if the trust named another person to act as a trustee, that would be the one who would have authority over the check.
2. Endorse the Check: Once the trustee has been appointed, he/she needs to endorse the check in the name of the trust. An endorsement needs to include the signature of the trustee along with the name of the trust.
3. Documentation: Most financial institutions would want to be satisfied in writing that the trustee, in fact, has the authority to act on behalf of the trust. Such documentation may include a copy of the trust agreement or a certificate of trust showing the named individual as a trustee with the legal right to control and manage the assets of the trust. Some banks may request the government-issued ID of a trustee.
4. Deposit Check: The check should be endorsed and deposited in the trust bank account together with whatever substantiation is required to accompany this check. If no bank account, the Trustee may open an account in the name of the Revocable Living Trust and deposit the check therein.
5. Distribution or Outgo of Funds: At a time when the funds need to be distributed to beneficiaries from that check, the trustee will make a distribution in accordance with the terms of the trust.

Conclusion: For checks made out to a Revocable Living Trust, the trustee needs to endorse such checks and provide appropriate documentation of their identity, followed by depositing the funds into the account of the trust while following all the terms of the trust.