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<p class="MsoNormal">All—Does anyone have experience with using the trustee power under
<a href="https://app.leg.wa.gov/RCW/default.aspx?cite=11.98.070">RCW 11.98.070(16)(iv)</a>, to help deal with an incapacitated beneficiary?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Times New Roman",serif">(16)(a)
<span style="background:yellow;mso-highlight:yellow">Pay an amount distributable to a beneficiary</span> who is under a legal disability or
<span style="background:yellow;mso-highlight:yellow">who the trustee reasonably believes is incapacitated</span>, by paying it directly to the beneficiary or applying it for the beneficiary's benefit, or
<span style="background:yellow;mso-highlight:yellow">by</span>:<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Times New Roman",serif">(i) Paying it to the beneficiary's guardian;<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Times New Roman",serif">(ii) Paying it to the beneficiary's custodian under chapter <a href="http://app.leg.wa.gov/RCW/default.aspx?cite=11.114"><b>11.114</b></a> RCW, and, for that purpose,
creating a custodianship;<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Times New Roman",serif">(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<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Times New Roman",serif;background:yellow;mso-highlight:yellow">(iv) Managing it as a separate fund on the beneficiary's behalf, subject to the beneficiary's continuing right to withdraw
the distribution.</span><span style="font-family:"Times New Roman",serif"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sincerely,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Eric<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Eric C. Nelsen<o:p></o:p></p>
<p class="MsoNormal">Sayre Law Offices, PLLC<o:p></o:p></p>
<p class="MsoNormal">1417 31st Ave South<o:p></o:p></p>
<p class="MsoNormal">Seattle WA 98144-3909<o:p></o:p></p>
<p class="MsoNormal">206-625-0092<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="background:aqua;mso-highlight:aqua">Covid-19 Update -
</span></b>All attorneys are working remotely during regular business hours and are available via email and by phone. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis. Please
direct mail and deliveries to the Seattle office.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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