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We have Residential Property in our Revocable Living Trust that we are selling. We are the sole trustees. While selling is straightforward our lawyer told us that the check for sale amount will be made out to the Trust. Can we deposit the check in our personal checking account? We do not have an account for the Trust. Note we want to use the money immediately for personal purpose so we need it in our personal account.

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The better course of action would be to set up a bank account for the trust and indeed to put all significant financial assets into the name of the trust.

Otherwise, the sale will remove the residence and the proceeds of it from the trust, which doesn't appear to be what you intend to do. A living trust is virtually useless if it isn't funded.

  • Thanks. But after the sale we want to use the funds immediately. So we want the money in our personal account – DEEM Oct 24 at 20:09
  • @DEEM He read your question. He is telling you it is better to put it in it's own account. The reason behind that is the record keeping is simple and legally you wouldn't be cashing a check made out to a different party. – Putvi Oct 24 at 20:12
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    @DEEM In general, an estate plan like this one presumes that all of your money should be in the revocable trust and all or substantially all of your personal expenses should be paid out of the trust bank accounts. There is no reason that money in a bank account titled in the name of the revocable trust can't be spent immediately. Usually, people with revocable trusts pay all or substantially all of their personal expenses out of trust bank accounts. – ohwilleke Oct 24 at 20:12
  • Also, @DEEM some banks won't even cash a check made out to someone else, so the bank may not let you. – Putvi Oct 24 at 20:24
  • @Putvi It would certainly be possible to direct a check be paid to someone else at closing, and an endorsement from a revocable trust to the individual beneficiary would probably be accepted by most banks. Arguably they have a legal duty to do so. – ohwilleke Oct 24 at 20:41

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