Most of our bank accounts are in the name of our living trust. When I make a withdrawal, they make the check out to me, not the trust. One bank insists on making it out to the trust which causes problems. Which is right?
Actually, issuing the check in the name carried on the bank's books (in the name of the trust in this case) is the more conservative and technically correct way to handle the withdrawals. The bank wants to make certain that if any transaction between you and the trust isn't in accordance with the terms of the trust, it is not a party to the transaction.
One way to avoid the problem is to have a checking account in the name of the trust. You could then transfer funds into the checking account and make checks payable any way you wish.
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Actually, issuing the check in the name carried on the bank's books (in the name of the trust in this case) is the more conservative and technically correct way to handle the withdrawals. The bank wants to make certain that if any transaction between you and the trust isn't in accordance with the terms of the trust, it is not a party to the transaction.