My elderly father (my brother and I manage his financial affairs) had issues depositing a check made out to a trust in his name, even though previous such checks went through smoothly. Glitch, or?
He made an angel investment over a decade ago into a small company, which was ultimately sold, and is in a kind of ongoing financial windup, with contingent payments based on milestones for the company, flowing through to the GP/LPs. I think that investment was made via a revocable lifetime trust in my father's name.
Check (a little under $3K) recently received, payable to that trust, and when my father (accompanied by my mother and brother) went to Bank of America to deposit it (and handle another issue), BoA did not want to accept/deposit the check into their account (standard, NON-TRUST joint checking account). Ultimately, they went to a different BoA branch and after some back and forth, a manager there "made an exception" and allowed the check to be deposited.
This investment has made several previous payouts, at least some of them of significantly larger amounts. I think those went smoothly. I don't know why this check was so troublesome. Even if it was to the trust, my father is the beneficiary (and I think the trustee too) - couldn't he endorse it himself and use the funds as he sees fit (today, and most likely in the future, deposit to their joint checking).
There are some alternatives (a dormant/shell account, in the trust's name at Schwab, with < $1 in it; asking the GP to write the check(s) to my father directly, etc), but those have issues of their own and may not go smoothly.
Can anyone shed any light on why BoA had issues with this?
We expect several future checks from this investment. Also, given my father's age and health and the nature of this investment, some of those may come after his death.
He made an angel investment over a decade ago into a small company, which was ultimately sold, and is in a kind of ongoing financial windup, with contingent payments based on milestones for the company, flowing through to the GP/LPs. I think that investment was made via a revocable lifetime trust in my father's name.
Check (a little under $3K) recently received, payable to that trust, and when my father (accompanied by my mother and brother) went to Bank of America to deposit it (and handle another issue), BoA did not want to accept/deposit the check into their account (standard, NON-TRUST joint checking account). Ultimately, they went to a different BoA branch and after some back and forth, a manager there "made an exception" and allowed the check to be deposited.
This investment has made several previous payouts, at least some of them of significantly larger amounts. I think those went smoothly. I don't know why this check was so troublesome. Even if it was to the trust, my father is the beneficiary (and I think the trustee too) - couldn't he endorse it himself and use the funds as he sees fit (today, and most likely in the future, deposit to their joint checking).
There are some alternatives (a dormant/shell account, in the trust's name at Schwab, with < $1 in it; asking the GP to write the check(s) to my father directly, etc), but those have issues of their own and may not go smoothly.
Can anyone shed any light on why BoA had issues with this?
We expect several future checks from this investment. Also, given my father's age and health and the nature of this investment, some of those may come after his death.
Statistics: Posted by psteinx — Wed May 29, 2024 12:34 pm — Replies 9 — Views 663