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  Home >> Checks/Money Orders >> Checks You Received  
ITF...FAO...What's the Difference?

What is the difference between ITF (in trust for) and FAO (for the account of)?



Assuming those phrases appear in the payee information on a check, the "in trust for" designation suggests that the check is payable to the named payee. If he or she is truly a trustee of a bona fide trust, the check should be deposited to an account in the name of the individual as trustee or in the name of the trust itself.

"For the account of" suggests that the payee must credit the check to an account in the name of the individual named after the phrase. If the check reads "for the account of Sam Smith," the check should be deposited to an account in Sam's name.

Published on BankingQuestions.com 6/16/10