Depositing a check made out to our family trust

Our bank refused to deposit our check made to our family trust to our personal
checking account. They said we would have to open a separate trust checking
account in order to make the deposit. Is there a legal basis for this?

Asked on August 15, 2018 under Estate Planning, California


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Yes, there are many reasons for the requirement of a separate account.  Mostly, there is a fiduciary duty of the Trustee to account for Trust funds and not to co-mingle the funds.  Trusts also pay taxes and need to keep copious records.  Open a separate account.  Good luck.

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