[WSBAPT] Trust continuing post-termination to manage share of incapacitated beneficiary

[Eric Nelsen]

All-Does anyone have experience with using the trustee power under RCW 11.98.070(16)(iv)<https://app.leg.wa.gov/RCW/default.aspx?cite=11.98.070>, to help deal with an incapacitated beneficiary?

(16)(a) Pay an amount distributable to a beneficiary who is under a legal disability or who the trustee reasonably believes is incapacitated, by paying it directly to the beneficiary or applying it for the beneficiary's benefit, or by:
(i) Paying it to the beneficiary's guardian;
(ii) Paying it to the beneficiary's custodian under chapter 11.114<http://app.leg.wa.gov/RCW/default.aspx?cite=11.114> RCW, and, for that purpose, creating a custodianship;
(iii) If the trustee does not know of a guardian or custodian, paying it to an adult relative or other person having legal or physical care or custody of the beneficiary, with instructions to expend the funds on the beneficiary's behalf; or
(iv) Managing it as a separate fund on the beneficiary's behalf, subject to the beneficiary's continuing right to withdraw the distribution.

I'm imagining a scenario where Trust has terminated on parent's death, and one of the beneficiaries is an adult with mental illness-not so bad that a guardianship is feasible, but bad enough that the beneficiary cycles in and out of mental institutions, homelessness, etc, and is not cooperative or in communication with the family (and frequently difficult to find for months at a time). Realistically, in these situations there is no effective way to actually distribute to the person, and there is no bank account and no guardian or custodian.

Could a Trustee make the terminating distribution to the other beneficiaries, but continue the trust beyond the technical termination, for the sake of continuing to manage the incapacitated beneficiary's share?

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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