Cashing a check made out to someone else

anothermom2
Thu, 30 May 2013 08:58:42 +0000

The UCC (uniform commercial code) provides that you can endorse a check by writing pay to the order of xyz and signing it. Of course, in all their wisdom, banks have added many rules that do not always permit this form of endorsement. I remember a few years back a bank that we used had a sign that they do not take checks endorsed to third parties.

For the under age 18 kids I would recommend a kid’s club type account (or whatever it is called at your place of banking), or look for a place that has this. In our area they give you$10 with a minimum deposit that is very minimal (perhaps10) to start it. We started our D’s when she was very small and for sure could not sign for it. We deposited her gifts and pay in that. It was actually a UTMA (uniform trust to minors) as our state law provides. The parent is the trustee and signs for deposits and withdrawals. I am not sure if the kid can actually withdraw without the parent.

Once they turn 18, have them get an account that they control all by themselves.