Your family member will get a tax break. Consumer Financial Protection Bureau. Instead of just signing your name on the back of the check as you would when chasing the check yourself, you’ll need to include information about the person to whom you’re signing it over. If so, sign your name on the back of the check Include any additional details such as whether it’s to be deposited or cashed Confirm the Person/Entity Will Accept a Signed-Over Check. What Is a Deposit Hold? Now, how do you sign over a check to someone else? Your account will go negative, or the funds will be taken from your balance if it's a bad check. Unfortunately, if you cash a check for somebody else and the check is bad, your bank will not reimburse you. Justin Pritchard, CFP, is a fee-only advisor in Colorado. This is called a “special endorsement”, and the person you’re paying is called the “endorsee”. You can try to sign a check over to somebody else, effectively paying that person with the check you received. Every check has an area on the back that reads “Endorse Check Here.” This is where you will sign your name as it appears on the front of the check. Accessed Jan. 11, 2020. You have a check payable to you, but you find yourself in a situation where you are unable to deposit the check, and/or you don’t want to cash it yourself. Endorsing a check over to someone else is necessary if you are unable to cash a check on your own. You can try to collect funds from your friend, but this is often difficult. You should sign your name exactly the same way it is written on the front of the check. Write "Void" in the endorsement section on the back of the check. No one else is authorized to sign your check with their name or yours. Only the person you designate will be able to cash or deposit the check. But you should remember that the bank has no legal obligation to accept the check. See How to Fill Out a Deposit Slip for In-Branch (or Mail-In) Deposits, Avoid Common Cashier's Check Scams by Knowing How They Work, How to Sign/Endorse a Check Over to Someone Else. When you receive a check and sign it over to someone else, you are creating a third-party check. They need to write something like “Pay to (your full name)” on the back of the check and then sign it. 2. This shows how you must sign your name on the back of the check to sign it over to a third party. Huntington® Relationship Money Market Account. The first $200 of funds will typically be available from a check within one business day (or the first $5,000 if it’s a cashier’s check). There are numerous ways to send money online for free and those methods might be a lot easier than dancing around bank policies. When Should You Use Western Union for Payments? CFPB Takes Action Against Check Cashing and Payday Lending Company for Tricking and Trapping Consumers, How to Spot, Report and Avoid Fake Check Scams. Investment, Insurance and Non-deposit Trust products are: NOT A DEPOSIT • NOT FDIC INSURED • NOT GUARANTEED BY THE BANK • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • MAY LOSE VALUE. Essentially, if you are the payee (recipient) on a check, you make an endorsement to sign it over to someone else – now making that money belong to the new payee. The check is now ready to be deposited by your designated third party. There are several ways to get free checking accounts, especially at local credit unions and online banks. Janet Berry-Johnson is a CPA with 10 years of experience in public accounting and writes about income taxes and small business accounting for companies such as Forbes and Credit Karma. It may be indicated as such but is not necessary. ET. If you can’t find what you’re looking for, let us know. Banks are essentially giving your money to somebody else when you use this approach. This should be confirmed before the check is endorsed to avoid causing confusion with multiple signatures. This mistake can be interpreted as check fraud. This could be another person, group of people, or a company. If your bank doesn't have a branch or ATM where you are, or it's inconvenient for you to get there, these two options might make your life easier: If your bank doesn’t offer mobile deposit, or you’re looking for an inexpensive solution, prepaid debit cards might meet your needs. What Do I Need to Know About the Information on the Back of My Checks? "Understand the Fees You Will Pay." Don't Spend the Money Too Quickly, Traveling Abroad? How to Sign/Endorse a Check Over to Someone Else 1. It’s perfectly legal to try, but banks aren’t required to honor your instructions. They may have policies against this practice or they may think that a third-party check is a red flag, so they’ll refuse to deposit or cash the check. It’s important to write the name of the person that you are signing the check over to in the endorsement area under your signature. Now what? Once you turn your check over… Endorsing a check to someone involves taking a check that has been made out to you and giving permission to someone else to cash; this is also known as signing over a check. What Changes When Someone is Claimed as a Dependent? Have the third party (the … If you don’t want to cash a check yourself or depositing the check is not an option, you might be able to sign the check over to somebody else. The person or entity that you choose to sign the check over to will need to ensure that their bank will accept the check, as a bank is not obligated to do so. Citibank. Understanding how to properly endorse a check will create a smoother and more positive experience when signing over a check to someone else. We value your opinion. 3  – Jim Oct 28 '15 at 2:41 STEP 6: Sign the check at the said space on the lower-right side. Pay to the order of: [the name of the party you’re paying] [your signature] and give it the person you’re paying. You're about to leave huntington.com and go to a site Huntington doesn't control. (Bring ID, of course.). Find out if it’s allowed and what the requirements are. Write your account number below your signature. What Is a Deposit Hold?" Under the law, a person commits forgery when she alters a legally significant document in a manner intended to defraud another person. If somebody asks you to deposit a check written to them, think carefully before you do so. However, it’s best to call your bank, explain your situation, and see what your options are. Who Signs a Check Made Payable to Multiple People? When endorsing a check, you turn the check over, and sign it on the back of the check. Check With The Bank. Signing a check over to somebody is not an ideal solution, and sometimes it’s simply not an option. treated with a varying degree of seriousness if you sign for someone else The following steps detail the process of signing over a check to a third party: You’ll need to designate who you’d like to sign your check over to. Start by flipping the check over to find the endorsement line. Huntington. That person would then deposit into their account or get cash. See you back here soon! Take t… If you don't have a bank account or any other way to handle checks, open an account. This is normally located on the right or left along the height of the check reading “endorse check here.” Once you’ve found it, sign your name on the top line, then write out “Pay to the order of [recipient name]” underneath. A third-party check is a personal or business check that is signed over as payment to another person. In this video, I show you how to endorse a check to someone else. Sign the check over to someone else Most banks require your ID be presented before they cash a check, but there’s no standard list for what’s considered an acceptable form of ID. We’re ready to help in person, online or on the phone. You'll have to ask that person—if you can find them—and possibly bring legal action to collect the money. Note that the process is the same regardless of whether you’re signing over a personal check, business check, insurance check, or another type. The payee's signature creates a blank endorsement, allowing anyone holding the check to cash it. Accessed Feb. 6, 2020. Ask before you endorse: If you insist on signing a check over to somebody else, have them check with their bank before you endorse the check. Adding Restrictions to Your Endorsement Write "For Deposit Only" on the top endorsement line. This … This shows the teller that you authorize this check to be paid … It is very important that both involved parties agree when moving through the process. Accessed Jan. 11, 2020. It is a good idea to accompany the third party to the bank when the check is deposited to provide proof of identification. Unfortunately, the risk is often too great for them to accept. "Third Party Sign Over?" Put your signature on the back of the check on the top endorsement line. Under certain circumstances, you can cash a check made out to someone else. Citizens Bank. "How to Spot, Report and Avoid Fake Check Scams." "Client Manual Consumer Accounts," Page 32. You’ll need to designate who you’d like to sign your check over to. Check with the bank that is going to handle the check to see if it takes checks that are signed over. Some banks require you to write "Pay to the order of [Person's First and Last Name]" under your signature, and others only require the person who is depositing it to sign their name under yours. Endorsing a joint check is a simple thing, though there might be some logistical arrangements you have to make involving other people.