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Updated almost 5 years ago,

User Stats

1,305
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525
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Mark S.
Pro Member
  • Rental Property Investor
  • Kentucky
525
Votes |
1,305
Posts

Syndication Check Payable to Trust: Depositing to Personal Acct

Mark S.
Pro Member
  • Rental Property Investor
  • Kentucky
Posted

I had my attorney create a revocable living trust for me several years ago for estate planning purposes.  I use this same trust to hold my real estate syndication investments (again, for purposes of estate planning and easy transition upon my death). 

I've asked my attorney on several occasions to confirm that I am able to write a personal check (from a personal checking account) to fund these syndication investments and still be able to use my trust.  He confirmed on multiple occasions that yes, I am able to do this, so I did.  My personal accounts have a POD/TOD beneficiary, so for purposes of easy transition upon my death (and to keep things simple - at least that was my goal) they effectively function the same way as a trust account would (only they're not technically trust accounts).

Most of my periodic cash flow from these syndications comes back into my personal checking account via ACH.  It's never been an issue.  One of the syndications just exited and they are mailing checks back to the investors.  I'm guessing my check will be titled in the name of my revocable living trust (instead of me personally, since that's how I structured the investment).

My question is whether or not I will be able to deposit a check made out to my revocable living trust into my personal checking account.  I am the trustee of the trust.  Will I simply be able to just sign my name, trustee, Mark S's revocable living trust and deposit to my personal account? 

My fear is the financial institution may require me to have and deposit into a trust checking account instead.  Not the end of the world, except I wouldn't really ever use said account other than for situations like this and I'd rather keep it simple.  A couple of the credit unions I use are out of state and are picky about certain things; I have a feeling I may not be able to open up a trust account remotely.  I could always ASK THEM, but then I feel like it's asking for permission vs foregiveness.  What I want to avoid is depositing it into my personal account, it get rejected, and then I have to go back to the syndicator to get them to cut another check. 

Has anyone had a similar experience before?  I feel like it shouldn't be so complicated.  Yes, I can go to a local credit union and just open up a trust checking account, but I'd rather not do that if I don't absolutely need to.  Thanks in advance for any feedback.

  • Mark S.
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