[WSBAPT] Pooled Account for Multiple Trusts

[Tara]

Mother passed away leaving a Last Will that provided for testamentary trusts
for her three adult children.  The trusts all last for the lifetime of each
child and then passes to each child's descendants.  The trustee is the same
individual for all three trusts.  The only trust asset is the mother's
residence.  The family plans to keep the house and rent it out to a
grandchild at a rate sufficient to cover expenses and upkeep, maybe turning
into a rent-to-own situation, a common generational practice in this family.
The wrinkle is that the Will very explicitly states repeatedly that each
trust is to be placed in and held as a separate trust for each child, rather
than allowing for a common trust with separate shares for each child.

 

I'm trying to puzzle out a convenient way for the trustee of these three
separate trusts to manage the receipt of a single monthly rental payment and
the payment of expenses for one property.  Three separate bank accounts for
each trust seems unduly cumbersome.  I think that the more straightforward
and streamlined the process, then the better the trustee will be able to
manage the property, account for his activities, and comply with his duties.

 

Is there a way for a bank to setup a pooled account for the three trusts
with the trusts being tenants-in-common, maybe similar to how we handle
IOLTA accounts, especially if everyone agrees and signs off in writing a
TEDRA-like fashion?  Any ideas for setup that will be smooth for the
trustee?  Suggestions?  Thanks in advance.

 

Tara M. Roberts

Puget Sound Law

roberts at pugetsoundlaw.com <mailto:roberts at pugetsoundlaw.com> 

 

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