How to Endorse a Check to a Family Member

When you receive a check, you must endorse it to access the funds. Endorsing a check involves signing the back, which authorizes the transfer of its ownership. People often endorse checks to family members for various reasons, such as providing a gift or handling a payment on their behalf.

Preparing the Check for Endorsement

To transfer a check to a family member, the original payee must complete a special endorsement. This involves writing specific instructions on the back of the check, typically within the designated endorsement area. The original payee should write “Pay to the order of [Family Member’s Full Name]” and sign their name exactly as it appears on the front of the check, immediately below this instruction.

Maintaining clear and legible handwriting for both the instruction and signature is important to prevent processing issues. If the original payee’s name is misspelled on the check, they should first endorse it with the incorrect spelling, then write their correct name below it. When a check is made out to multiple payees, the wording on the “Pay to the Order of” line dictates who must endorse it. If “and” connects the names, such as “John and Jane Smith,” both individuals must endorse the check. If “or” is used, like “John or Jane Smith,” either person can endorse the check.

Bank Policies on Third-Party Endorsements

Banks approach checks endorsed to a third party with caution due to fraud and compliance concerns. Banks are not legally obligated to accept these checks, and their policies can vary significantly. For instance, the family member attempting to deposit or cash the check may be required to have an account at that specific bank.

Some banks may insist that both the original payee and the family member be present at the branch to complete the transaction, particularly for larger amounts. The family member will always need to present valid government-issued identification for verification. Banks might exercise discretion or refuse a third-party endorsed check if the endorsement is unclear or if there are other indicators of risk. Checking with the specific bank beforehand can help clarify their requirements and avoid complications.

Depositing or Cashing the Endorsed Check

After a check is endorsed to a family member, they can deposit or cash it. The family member should take the check to their bank or credit union. For deposits, they can typically use a deposit slip at a teller window, an ATM, or a mobile banking application if the bank’s policy allows for third-party mobile deposits.

When cashing the check, the family member will need to present the endorsed check to a teller and provide valid identification. Cashing options may be more limited if the family member does not have an account with the bank on which the check is drawn. Funds availability for deposited checks can vary; generally, a portion of the funds may be available the next business day, with the full amount accessible within a few business days, depending on the check amount and the bank’s policies. It is advisable for the family member to keep a record of the transaction for their financial records.