So, when Paul and I first got married and moved into our house, this is how the laundry room looked. I would fold clothes straight from the dryer and put his in one basket and mine in the other. And there they would stay until we needed something out of them or they were too full to add anything else.
Then we had Sophie and it looked like this. I just added a third basket for her stuff. The good thing was her folded flat when not used. I also didn't put anything away until the baskets were full and I needed them for whatever was in the dryer (so I could dry those that were in the washer).
Then we added Logan and another basket. I'd switch around who got what basket depending on who was going to have the most clothes, but usually I kept the bigger ones for Paul and I since that meant I could go longer before I had to put them away. It did make the laundry room crowded with baskets on both the dryer and the washer.
Now that the kids are old enough to put away some of their own clothes, I've added 2 more baskets...one for each kid with the clothes that go in their dressers. Of course, now I have to put clothes away much more often (unless they are nearly empty and can be stacked). I have specific days that the kids put theirs away (it's their chore for the day). And if you're curious, Paul's clothes are sent out to be laundered and ironed. If you know me at all, you know I DON'T IRON EVER.
And this is why any basket of clean, folded clothes have to either be put away or stored back in the laundry room.