Aren't Living Trusts Suppose to Help???

[misspancha]

Before my father passed away 5 years ago, the family established a Living Trust. My brother and I are co-successor trustees. Recently a hospital issued a check to the Living Trust (which includes our father's name) due to an overpayment of services rendered when my father was ill. When we tried to cash the check at the bank where my father formerly had an account, the bank claimed that we couldn't because we do not have a living trust account and they claimed we could not open one because my father is deceased. The hospital will not reissue another check in our names because they claim that legally they have to make it out to the living trust . What are our legal options to cash this check? How do we prevent this from happening in the future? Thanks, D.