Hello - My mom recently received a settlement check in the amount of
$25,000 from her insurance company for an injury she sustained from a
car accident.  Due to her recent personal financial problems (i.e.
bankruptcy), she has been reluctant to get a bank account and I am not
privy to all of the details. In any case, this is a problem as she
cannot convert the check's funds into a usable form.  I have a bank
account and might be willing to assist her but I have some
reservations about doing so.  I would like the following questions
answerered (please answer each one as thoroughly as possible):

1) What negative consequences, if any, could I face as an individual
should I go ahead and deposit this check into my account for her?  I
am concerned about potential taxes and other negative effects (beit
from the bank or government) that may negatively harm me.  I also do
not wish to arise suspicions to my account or financial affairs, as
this money is not mine, but my mom's. (please note that this check is
completely legitimate)

2) If you were in a situation such as this, how would you proceed? 
Advice from personal experience and/or research is valued.

3) What other options are out there for my mom to get this check
converted into usable funds?  An answer that addresses the security of
the money (i.e. large sums of cash sitting around are NOT safe) and
that allow her access to the money are important.  (Please do not
suggest check cashing businesses - they charge exorbitant fees - any
solution that charges a ton of fees is not a solution).

If you need any clarifications, let me know.

Thanks!

Send the check back to the insurance company and ask them to re-issue
it in my name, then send it to me and your worries are over.

It is always better to give than to receive and I am sure that both
you and your mom will then be a whole lot happier.

I shall be pleased to lend a helping hand.

karizma: Cash the check for your ma. What goes around, comes around.
Someday, someone will do something similar for you. The hell with the
ramifications, and I don't think there are any. As long as you can
show the check coming in, you could have your ma sign a receipt for
the cash going out... What more could the govt want? Ask someone at
the bank to notarize it all for you. They should be happy to do that
for a small fee.

Thanks for your "helpful" comments :D

I wish I could just forget about the ramifications, but unfortunately
I've been burned way too many times before to do that.  This time I
need to make a smart decision, beit my mom or anyone else.

What a tangled web we weave when we attempt to deceive.  Advise your
mother to open a bank account and deposit the check.

Hello,                                                                
          If your mother owes money to the fedral goverment and she
opens a bank account,they can and probley will put a levy on her
account. If it's just bankrupcy she's fine. If you do accept the item,
have her endorse it to you in front of a teller, both of you should
have proper id. ask for a copy front and back to obtain for your
records(in case you'r autied). I'm shure your bank will place a hold
on the check. if they release funds to you in less than ten business
days, dont withdraw them! It can take that long for a check to come
back sometimes.In my three years of banking I have seen sevral
returned checks from insurance compianes. Let the bank know you will
need to do a large cash withdraw when funds are avalable.However,if
you withdraw more than $10,000. in one day, a suspicous transaction
form will be mailed to the F.B.I. by law. Otherwise I see no problem.

I am happy to see some constructive comments here.  Thank you to those
who are taking this seriously.

I am also very frustrated to see a lot of what I see are judgmental,
uninformed comments.  No one is trying to deceive anyone here.  This
is an honest, legitimate situation that I'm sure thousands of people
in this country find themselves in on a daily basis.  I'm looking for
an answer to this question, not for someone who doesn't know the
entire situation to pass judgment.  Please stick to the merits of the
question, or I will have to cancel it.

There will be no negative consequences.  Cash the check for your
mother (and keep a photocopy of the front and back in your files,
after it has been cashed, just in case you need it for proof later
on).  There are not likely to be any tax consequences since settlement
money is non-taxable.
But if she has creditors (from the bankruptcy) that have not been
paid, does she intend to do the right thing and at least use some of
the money to pay them back?  Any normal reasonable person should not
mind having a large amount of money in a bank account where it is
safe--are you sure she is not trying to hide assets so that her
creditors will not find out about the money?  Just wondering.

4KEITH (I'm NOT a GOOGLE Researcher)
Accountant

I know you don't want any rude comments, but if your mom just filed
bankruptcy, did the bankruptcy clear yet? I don't know if the check
can be taxed or not but I am sure the irs will know about it. I
wouldn/t be suprised if her creditors may even know of the check. Is
there anyway she can use the money to get her self out of the
financial problems so she can keep a bank account?

Plus this may sound rude and it probably isn't rude enough. She is
your mother, what is there to think about cash the check for her. It
isn't going to hurt you and if you don't want the fbi thing on your
record for such a large amount just make 3 smaller withdrwas. Just
make sue the check clears before you try to withdraw any money.

I am going to close this question.  I came here looking for
insightful, helpful advice (as I am accustomed to seeing on GA) but it
seems like everyone feels they know the situation better than I do as
it pertains to my mom.  There is nothing illegal or deceitful going on
here.  A person had a bankruptcy a couple of years ago that was
finalized.  They now choose to not have a bank account for whatever
personal reasons.  Not everyone uses bank accounts!  Instead of
focusing on how this situation can be resolved, most have you have
focused on why she got in this situation.  It's truly none of your
business, and does not relate to the question posed.

I cannot put myself at potential financial risk in this situation.  It
has happened before, and I cannot allow it to happen again.  That is
not your judgment to make.