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Disbursement

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esorami

Junior Member
What is the name of your state?What is the name of your state?What is the name of your state?What is the name of your state?What is the name of your state? CA

I am the executor of my mother's trust, and getting ready to make the first of 2 disbursements to the beneficiaries. Are cashier's checks ok to use and are there any do's and don'ts to the disbursements? The atty is so vague and slow. I have an accountant for the tax part of it.
I have notified each beneficiary that the first check will be coming within a week.
 


JETX

Senior Member
esorami said:
Are cashier's checks ok to use and are there any do's and don'ts to the disbursements? The atty is so vague and slow. I have an accountant for the tax part of it.
I have notified each beneficiary that the first check will be coming within a week.
You can certainly use cashiers checks... but they are much harder to get copies of.
Why not have a separate trust checking account and simply issue checks from it?? Then, you will have a separate statement and copies of checks to show that they were received and processed.
 

esorami

Junior Member
Why not have a separate trust checking account:



I do have a separate trust checking acct, but along the way, the atty said to make cashiers checks. But i think u are right, there would be better accounting using the trust's checks.
I just don't want to screw anything up since the atty is not much help.

Thanks so much for replying.
 

BlondiePB

Senior Member
Another Viable Option

esorami said:
Why not have a separate trust checking account:



I do have a separate trust checking acct, but along the way, the atty said to make cashiers checks. But i think u are right, there would be better accounting using the trust's checks.
I just don't want to screw anything up since the atty is not much help.

Thanks so much for replying.
You can also go to the bank with the trust checking account, make checks out to the beneficiaries from the trust account, and have the bank issue you bank/cashier's checks made out to the beneficiaries. Doing this ensures that the funds have been withdrawn from the account. Sometimes people do not cash checks right away.

When you are getting real close to where a final accounting is needed and you need the funds accounted for (withdrawn), this is a good way to ensure the money has been withdrawn for your accounting. You'll have both the cancelled checks from the trust made out to the beneficiaries and copies of the bank drafts made out to the beneficiaries.
 

JETX

Senior Member
BlondiePB said:
You can also go to the bank with the trust checking account, make checks out to the beneficiaries from the trust account, and have the bank issue you bank/cashier's checks made out to the beneficiaries. Doing this ensures that the funds have been withdrawn from the account. Sometimes people do not cash checks right away.
That doesn't help the problem.
It is very hard, if at all, for someone to confirm that a payee received and presented a cashiers check.
The cashiers check does NOT come back to the payer.... That is the reason for Trust accounts.... so that the Trustee has an endorsed check to show that payment was in fact made.
 

BlondiePB

Senior Member
JETX said:
That doesn't help the problem.
It is very hard, if at all, for someone to confirm that a payee received and presented a cashiers check.
The cashiers check does NOT come back to the payer.... That is the reason for Trust accounts.... so that the Trustee has an endorsed check to show that payment was in fact made.
Of course, you are right about the confirmation regarding the payee and payer (bank draft). Would not this be able to be overcome by also obtaining a receipt from the beneficiaries?

I've found myself in situations where I've had to do final accountings and checks issued were not cashed, even more than a month later. I had to stop payment on those checks, write new ones to the payee, and have them turned into bank drafts so that the funds would clear and I could get the accounting into the court. That solved my problem. :)
 

attny-wanna-bee

Junior Member
BlondiePB said:
You can also go to the bank with the trust checking account, make checks out to the beneficiaries from the trust account, and have the bank issue you bank/cashier's checks made out to the beneficiaries.
Not sure how this would work as you cannot endorse a check that is not made out to you and then turn it into a bank check. I am not sue if I am interpreting this correctly.

My advice would be certainly to write a check from the estate account. Direct disbursement is always the best way in these matters. I would however send the final payments certified mail.
 

BlondiePB

Senior Member
attny-wanna-bee said:
Not sure how this would work as you cannot endorse a check that is not made out to you and then turn it into a bank check. I am not sue if I am interpreting this correctly.
Well, if you don't know how this works, then it is best not jump in. Not only CAN this be done, I do it to ensure that the funds are withdrawn from an account in order to get a final accounting into the court. The bank draft has on it as the remitter the "title" of the account from which the funds/checks are being drafted from.

Not only do I have a cancelled check from the account made out to the payee, I have a copy of the bank draft made out to the payee with the "title" of the account as the remitter. Should I want a copy of the endorsement from the bank draft for my records, I can obtain that too.
 

esorami

Junior Member
have the bank issue you bank/cashier's checks made out to the beneficiaries.
What would I do with the cashier's checks after I issue their checks from the bank trust account? Do I hold them? Or?
 

BlondiePB

Senior Member
esorami said:
What would I do with the cashier's checks after I issue their checks from the bank trust account? Do I hold them? Or?
Check with your attorney if there is any reason why you should not, at this time, deliver the checks to the beneficiaries (hand delivered & get a receipt or CRRR and insured if by mail). Your attorney will require a copy of the bank drafts for the file.

As for your question on the other thread regarding duties of an executor, you can read your state statutes, obtain info from the clerk at the probate division, and Barnes & Noble has good books on probate.
 

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