Trying to pay assets out of MPPP. How to handle additional deposits made into the Trust.

[jkharvey]

The client terminated the MPPP two years ago and has been working to distribute all of the assets. Well, all assets were distributed early in 2005. Part of these assets were life ins. policies. It seems now that the Ins. Co. that provided these policies went through some kind of sale and has notified our client that additional money will be coming as a result of the ins. company sale. They can't tell us, however, how much it will be and when it will come. My question is whether or not the Trust has to keep the MM account open with the broker. It seems to me that if the INs. company issues checks in the name of the trust at some point in the future, the trust will need someway to deposit and then distribute these amounts. Suggestions?

[Bird]

If they are checks related to individual policies and for the benefit of particular participants, you might be able to just endorse the checks to them or their IRAs...I can see a problem if you have lump sums though (withholding).

I guess I'd ask if it is really such a problem to keep the account open? Either that or you could open a checking account and make a bank unhappy.