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My girlfriend (over 18) is estranged from her parents, but recently discovered money in her name in the form of stocks. She sold the stocks, but the company that handled the transaction sent a check with her father's name as well (with an "and" between the names). When she went to deposit the check, they demanded to see his ID and signature as well (which she obviously doesn't have).

She endorsed it already (not knowing this would happen), so she can't mail it off to him (otherwise he will cash it in his account). She's reasonably certain he won't do anything to help her get this money.

The issuer of the check said they can't/won't change it to "or" so now the money is basically in limbo. What course of action should she take? Is it possible for her to, say, un-endorse the check until she gets the other signature? Can she somehow be guaranteed that she can access the money and he won't dispose or himself cash it out?

Chris W. Rea
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Jerr
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3 Answers3

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She can't do anything about having the details on the check (or cheque as we say in Australia) changed, as the shares were in joint names so the check has to be in the same names. The shares were obviously bought for her by her father probably as a gift or as a notion of helping her start her adult life or so she would have a little nest egg for the future. Now you are saying that she doesn't trust her father to sign over the check for her to collect the money, but unless she talks to him about it the money will be lost anyway.

So either she will appreciate what he had done for her in the first place (buying the shares in her name) and thanks him for them and asks if he could sign the check over to her so she can collect the money, and even if he disagrees at least she would have heard his side of the story. On the other hand, if it is too much for her to talk to him about, then just forget about the check and the money. I wouldn't be accepting gifts from someone I disliked!

Victor
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If the brokerage account was in both of their names they any proceeds would belong to both of them. If the brokerage firm were to issue your girlfriend a check with just her name then they could be liable for that same amount again to her father. So while technically they could, the firm is never going to issue a new check with out her father having his name removed from the account(something he would have to be a part of and may be against the firm's policies).

If your girlfriend really wants/needs the money in the account she is going to have to deal with her father. If the money is not worth the hassle of trying to deal with her father she could just send the check to him. However if it is just that she does not believe her father will help her then she should reach out. Estrangement is hard on both sides and she may be underestimating her father. I know I often underestimated what lengths my parents were willing to go to help me.

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I know you have already accepted an answer, but I think I might have something to add.

I recently closed out a couple of accounts that my parents setup for me as college fund accounts. One of them was specifically listed as a "custodial gift to minor" account. If she is of legal age and the stocks were in this sort of form, the bank is required by law to remove the fathers name from the checks. When I went through the process of trying to do this the bank was very reluctant to do so and finally told me that they had no proof of my age and so I would need to provide this proof before they would remove my fathers name. I am still close to my parents so it ended up just being easier to get him to sign the check for me.

If the account isn't structured in this sort of way, then you will pretty much be out of luck and have to follow what the others have said.

Kellenjb
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