How to Sign Over a Check to Someone Else

Signing over a check made out to you to another individual is known as a third-party endorsement. This process transfers ownership of the check from the original payee to a new recipient. It can be a convenient way to direct funds without first depositing them into your own account.

Endorsing the Check for Transfer

To endorse a check for transfer, the original payee must follow specific steps. Turn the check over to locate the designated endorsement area, typically found on the back, usually on the left side. This area often includes a line or box marked “Endorse Here” or similar phrasing.

Next, the original payee must write “Pay to the Order of” followed by the full legal name of the new payee. Below this statement, the original payee must sign their name exactly as it appears on the “Payee” line on the front of the check. Ensure all writing is legible and done with permanent ink to avoid processing issues.

Key Considerations for Transferring a Check

Not all financial institutions accept third-party endorsements. Bank policies vary, and some banks may refuse to process them due to fraud risks. Both the original payee and the new payee should confirm with their respective banks beforehand whether a third-party check will be accepted.

Certain types of checks may be ineligible for third-party endorsement. Government checks, cashier’s checks, or money orders often have restrictions against being signed over due to security protocols. Additionally, stale-dated checks, meaning they are over six months old, may not be honored.

The original payee retains financial responsibility. If the check bounces due to insufficient funds, the original payee may still be liable for the amount. The bank could reverse the funds, and the original payee would need to seek reimbursement from the check’s issuer. For security, it is recommended to endorse a check to a third party only when the new payee is present and immediately ready to deposit or cash it. This helps prevent the check from being cashed by an unintended party if lost or stolen.

What the New Payee Does

Once the original payee has endorsed the check, the new payee must also endorse it. The new payee should sign their name on the back of the check, below the original payee’s endorsement, as they would for any check they receive. This second signature validates the transfer of ownership to the new recipient.

After endorsing the check, the new payee can deposit it into their bank account or attempt to cash it. This is subject to their bank’s policies regarding third-party checks and any holds on the funds. Financial institutions may require identification from the new payee to verify their identity and may need to verify the original payee’s signature for security.