Uniform custodial trust act

AN ACT Relating to the uniform custodial trust act; amending RCW 1
11.135.010; and adding a new chapter to Title 11 RCW.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. DEFINITIONS. As used in this chapter:4
(1) "Adult" means an individual who is at least 18 years of age.5
(2) "Beneficiary" means an individual for whom property has been 6
transferred to or held under a declaration of trust by a custodial 7
trustee for the individual's use and benefit under this chapter.8
(3) "Conservator" means a person appointed or qualified by a 9
court to manage the estate of an individual or a person legally 10
authorized to perform substantially the same functions.11
(4) "Court" means a superior court of this state.12
(5) "Custodial trust property" means an interest in property 13
transferred to or held under a declaration of trust by a custodial 14
trustee under this chapter and the income from and proceeds of that 15
interest. 16
(6) "Custodial trustee" means a person designated as trustee of a 17
custodial trust under this chapter or a substitute or successor to 18
the person designated. 19
Z-0049.2
SENATE BILL 5037
State of Washington 69th Legislature 2025 Regular Session
By Senators Holy, Pedersen, Dhingra, Nobles, Shewmake, and Wellman;
by request of Uniform Law Commission
Prefiled 12/13/24. Read first time 01/13/25. Referred to Committee
on Law & Justice.
p. 1 SB 5037
(7) "Guardian" means a person appointed or qualified by a court 1
as a guardian of an individual, including a limited guardian, but not 2
a person who is only a guardian ad litem. 3
(8) "Incapacitated" means lacking the ability to manage property 4
and business affairs effectively by reason of mental illness, mental 5
deficiency, physical illness or disability, chronic use of drugs, 6
chronic intoxication, confinement, detention by a foreign power, 7
disappearance, minority, or other disabling cause. 8
(9) "Legal representative" means a personal representative or 9
conservator. 10
(10) "Member of the beneficiary's family" means a beneficiary's 11
spouse, state registered domestic partner, descendant, stepchild, 12
parent, stepparent, grandparent, brother, sister, uncle, or aunt, 13
whether of the whole or half blood or by adoption.14
(11) "Person" means an individual, corporation, business trust, 15
estate, trust, partnership, joint venture, association, or any other 16
legal or commercial entity. 17
(12) "Personal representative" means an executor, administrator, 18
or special administrator of a decedent's estate, a person legally 19
authorized to perform substantially the same functions, or a 20
successor to any of them. 21
(13) "State" means a state, territory, or possession of the 22
United States, the District of Columbia, or the Commonwealth of 23
Puerto Rico. 24
(14) "Transferor" means a person who creates a custodial trust by 25
transfer or declaration. 26
(15) "Trust company" means a financial institution, corporation, 27
or other legal entity, authorized to exercise general trust powers.28
NEW SECTION. Sec. 2. CUSTODIAL TRUST— GENERAL. (1) A person may 29
create a custodial trust of property by a written transfer of the 30
property to another person, evidenced by registration or by other 31
instrument of transfer, executed in any lawful manner, naming as 32
beneficiary, an individual who may be the transferor, in which the 33
transferee is designated, in substance, as custodial trustee under 34
the Washington uniform custodial trust act.35
(2) A person may create a custodial trust of property by a 36
written declaration, evidenced by registration of the property or by 37
other instrument of declaration executed in any lawful manner, 38
describing the property and naming as beneficiary an individual other 39
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than the declarant, in which the declarant as titleholder is 1
designated, in substance, as custodial trustee under the Washington 2
uniform custodial trust act. A registration or other declaration of 3
trust for the sole benefit of the declarant is not a custodial trust 4
under this chapter. 5
(3) Title to custodial trust property is in the custodial trustee 6
and the beneficial interest is in the beneficiary. 7
(4) Except as provided in subsection (5) of this section, a 8
transferor may not terminate a custodial trust. 9
(5) The beneficiary, if not incapacitated, or the conservator of 10
an incapacitated beneficiary, may terminate a custodial trust by 11
delivering to the custodial trustee a writing signed by the 12
beneficiary or conservator declaring the termination. If not 13
previously terminated, the custodial trust terminates on the death of 14
the beneficiary. 15
(6) Any person may augment existing custodial trust property by 16
the addition of other property pursuant to this chapter.17
(7) The transferor may designate, or authorize the designation 18
of, a successor custodial trustee in the trust instrument.19
(8) This chapter does not displace or restrict other means of 20
creating trusts. A trust whose terms do not conform to this chapter 21
may be enforceable according to its terms under other law.22
NEW SECTION. Sec. 3. CUSTODIAL TRUSTEE FOR FUTURE PAYMENT OR 23
TRANSFER. (1) A person having the right to designate the recipient of 24
property payable or transferable upon a future event may create a 25
custodial trust upon the occurrence of the future event by 26
designating in writing the recipient, followed in substance by: 27
". . . . . as custodial trustee for . . . . . (name of beneficiary) 28
under the Washington uniform custodial trust act."29
(2) Persons may be designated as substitute or successor 30
custodial trustees to whom the property must be paid or transferred 31
in the order named if the first designated custodial trustee is 32
unable or unwilling to serve. 33
(3) A designation under this section may be made in a will, a 34
trust, a deed, a multiple-party account, an insurance policy, an 35
instrument exercising a power of appointment, or a writing 36
designating a beneficiary of contractual rights. Otherwise, to be 37
effective, the designation must be registered with or delivered to 38
the fiduciary, payor, issuer, or obligor of the future right.39
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NEW SECTION. Sec. 4. FORM AND EFFECT OF RECEIPT AND ACCEPTANCE 1
BY CUSTODIAL TRUSTEE — JURISDICTION. (1) Obligations of a custodial 2
trustee, including the obligation to follow directions of the 3
beneficiary, arise under this chapter upon the custodial trustee's 4
acceptance, express or implied, of the custodial trust property.5
(2) The custodial trustee's acceptance may be evidenced by a 6
writing stating in substance: 7
CUSTODIAL TRUSTEE'S RECEIPT AND ACCEPTANCE8
I, . . . . . (name of custodial trustee) acknowledge receipt 9
of the custodial trust property described below or in the 10
attached instrument and accept the custodial trust as 11
custodial trustee for . . . . . (name of beneficiary) under 12
the Washington uniform custodial trust act. I undertake to 13
administer and distribute the custodial trust property 14
pursuant to the Washington uniform custodial trust act. My 15
obligations as custodial trustee are subject to the 16
directions of the beneficiary unless the beneficiary is 17
designated as, is, or becomes incapacitated. The custodial 18
trust property consists of . . . . . (description of 19
property). 20
Dated: . . . (date) . . . 21
. . . . . 22
(Signature of custodial trustee) 23
(3) Upon accepting custodial trust property, a person designated 24
as custodial trustee under this chapter is subject to personal 25
jurisdiction of the court with respect to any matter relating to the 26
custodial trust. 27
NEW SECTION. Sec. 5. TRANSFER TO CUSTODIAL TRUSTEE BY FIDUCIARY 28
OR OBLIGOR— FACILITY OF PAYMENT. (1) Unless otherwise directed by an 29
instrument designating a custodial trustee pursuant to section 3 of 30
this act, a person, including a fiduciary other than a custodial 31
trustee, who holds property of or owes a debt to an incapacitated 32
individual not having a conservator may make a transfer to an adult 33
member of the beneficiary's family or to a trust company as custodial 34
trustee for the use and benefit of the incapacitated individual. If 35
the value of the property or the debt exceeds $20,000, the transfer 36
is not effective unless authorized by the court.37
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(2) A written acknowledgment of delivery, signed by a custodial 1
trustee, is a sufficient receipt and discharge for property 2
transferred to the custodial trustee pursuant to this section.3
NEW SECTION. Sec. 6. MULTIPLE BENEFICIARIES— SEPARATE CUSTODIAL 4
TRUSTS— SURVIVORSHIP. (1) Beneficial interests in a custodial trust 5
created for multiple beneficiaries are deemed to be separate 6
custodial trusts of equal undivided interests for each beneficiary. 7
Except in a transfer or declaration for use and benefit of spouses or 8
state registered domestic partners, for whom survivorship is 9
presumed, a right of survivorship does not exist unless the 10
instrument creating the custodial trust specifically provides for 11
survivorship or survivorship is required as to community or marital 12
property.13
(2) Custodial trust property held under this chapter by the same 14
custodial trustee for the use and benefit of the same beneficiary may 15
be administered as a single custodial trust. 16
(3) A custodial trustee of custodial trust property held for more 17
than one beneficiary shall separately account to each beneficiary 18
pursuant to sections 7 and 15 of this act for the administration of 19
the custodial trust. 20
NEW SECTION. Sec. 7. GENERAL DUTIES OF CUSTODIAL TRUSTEE. (1) 21
If appropriate, a custodial trustee shall register or record the 22
instrument vesting title to custodial trust property.23
(2) If the beneficiary is not incapacitated, a custodial trustee 24
shall follow the directions of the beneficiary in the management, 25
control, investment, or retention of the custodial trust property. In 26
the absence of effective contrary direction by the beneficiary while 27
not incapacitated, the custodial trustee shall observe the standard 28
of care that would be observed by a prudent person dealing with 29
property of another and is not limited by any other law restricting 30
investments by fiduciaries. However, a custodial trustee, in the 31
custodial trustee's discretion, may retain any custodial trust 32
property received from the transferor. If a custodial trustee has a 33
special skill or expertise or is named custodial trustee on the basis 34
of representation of a special skill or expertise, the custodial 35
trustee shall use that skill or expertise. 36
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(3) Subject to subsection (2) of this section, a custodial 1
trustee shall take control of and collect, hold, manage, invest, and 2
reinvest custodial trust property. 3
(4) A custodial trustee at all times shall keep custodial trust 4
property of which the custodial trustee has control, separate from 5
all other property in a manner sufficient to identify it clearly as 6
custodial trust property of the beneficiary. Custodial trust 7
property, the title to which is subject to recordation, is so 8
identified if an appropriate instrument so identifying the property 9
is recorded, and custodial trust property subject to registration is 10
so identified if it is registered, or held in an account in the name 11
of the custodial trustee, designated in substance: ". . . . . as 12
custodial trustee for . . . . . (name of beneficiary) under the 13
Washington uniform custodial trust act." 14
(5) A custodial trustee shall keep records of all transactions 15
with respect to custodial trust property, including information 16
necessary for the preparation of tax returns, and shall make the 17
records and information available at reasonable times to the 18
beneficiary or legal representative of the beneficiary.19
(6) The exercise of a durable power of attorney for an 20
incapacitated beneficiary is not effective to terminate or direct the 21
administration or distribution of a custodial trust.22
NEW SECTION. Sec. 8. GENERAL POWERS OF CUSTODIAL TRUSTEE. (1) A 23
custodial trustee has the powers of a trustee under RCW 11.98.070.24
(2) This section does not relieve a custodial trustee from 25
liability for a violation of section 7 of this act.26
NEW SECTION. Sec. 9. USE OF CUSTODIAL TRUST PROPERTY. (1) A 27
custodial trustee shall pay to the beneficiary or expend for the 28
beneficiary's use and benefit so much or all of the custodial trust 29
property as the beneficiary while not incapacitated may direct from 30
time to time.31
(2) If the beneficiary is incapacitated, the custodial trustee 32
shall expend so much or all of the custodial trust property as the 33
custodial trustee considers advisable for the use and benefit of the 34
beneficiary and individuals who were supported by the beneficiary 35
when the beneficiary became incapacitated, or who are legally 36
entitled to support by the beneficiary. Expenditures may be made in 37
the manner, when, and to the extent that the custodial trustee 38
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determines suitable and proper, without court order and without 1
regard to other support, income, or property of the beneficiary.2
(3) A custodial trustee may establish checking, savings, or other 3
similar accounts of reasonable amounts under which either the 4
custodial trustee or the beneficiary may withdraw funds from, or draw 5
checks against, the accounts. Funds withdrawn from, or checks written 6
against, the account by the beneficiary are distributions of 7
custodial trust property by the custodial trustee to the beneficiary.8
NEW SECTION. Sec. 10. DETERMINATION OF INCAPACITY — EFFECT. (1) 9
The custodial trustee shall administer the custodial trust as for an 10
incapacitated beneficiary if: (a) The custodial trust was created 11
under section 5 of this act; (b) the transferor has so directed in 12
the instrument creating the custodial trust; or (c) the custodial 13
trustee has determined that the beneficiary is incapacitated.14
(2) A custodial trustee may determine that the beneficiary is 15
incapacitated in reliance upon: (a) Previous direction or authority 16
given by the beneficiary while not incapacitated, including direction 17
or authority pursuant to a durable power of attorney; (b) the 18
certificate of the beneficiary's physician; or (c) other persuasive 19
evidence. 20
(3) If a custodial trustee for an incapacitated beneficiary 21
reasonably concludes that the beneficiary's incapacity has ceased, or 22
that circumstances concerning the beneficiary's ability to manage 23
property and business affairs have changed since the creation of a 24
custodial trust directing administration as for an incapacitated 25
beneficiary, the custodial trustee may administer the trust as for a 26
beneficiary who is not incapacitated. 27
(4) On petition of the beneficiary, the custodial trustee, or 28
other person interested in the custodial trust property or the 29
welfare of the beneficiary, the court shall determine whether the 30
beneficiary is incapacitated. 31
(5) Absent determination of incapacity of the beneficiary under 32
subsection (2) or (4) of this section, a custodial trustee who has 33
reason to believe that the beneficiary is incapacitated shall 34
administer the custodial trust in accordance with the provisions of 35
this chapter applicable to an incapacitated beneficiary.36
(6) Incapacity of a beneficiary does not terminate: (a) The 37
custodial trust; (b) any designation of a successor custodial 38
trustee; (c) rights or powers of the custodial trustee; or (d) any 39
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immunities of third persons acting on instructions of the custodial 1
trustee. 2
NEW SECTION. Sec. 11. EXEMPTION OF THIRD PERSON FROM LIABILITY. 3
A third person in good faith and without a court order may act on 4
instructions of, or otherwise deal with, a person purporting to make 5
a transfer as, or purporting to act in the capacity of, a custodial 6
trustee. In the absence of knowledge to the contrary, the third 7
person is not responsible for determining:8
(1) The validity of the purported custodial trustee's 9
designation; 10
(2) The propriety of, or the authority under this chapter for, 11
any action of the purported custodial trustee; 12
(3) The validity or propriety of an instrument executed or 13
instruction given pursuant to this chapter either by the person 14
purporting to make a transfer or declaration or by the purported 15
custodial trustee; or 16
(4) The propriety of the application of property vested in the 17
purported custodial trustee. 18
NEW SECTION. Sec. 12. LIABILITY TO THIRD PERSON. (1) A claim 19
based on a contract entered into by a custodial trustee acting in a 20
fiduciary capacity, an obligation arising from the ownership or 21
control of custodial trust property, or a tort committed in the 22
course of administering the custodial trust, may be asserted by a 23
third person against the custodial trust property by proceeding 24
against the custodial trustee in a fiduciary capacity, whether or not 25
the custodial trustee or the beneficiary is personally liable.26
(2) A custodial trustee is not personally liable to a third 27
person: 28
(a) On a contract properly entered into in a fiduciary capacity 29
unless the custodial trustee fails to reveal that capacity or to 30
identify the custodial trust in the contract; or 31
(b) For an obligation arising from control of custodial trust 32
property or for a tort committed in the course of the administration 33
of the custodial trust unless the custodial trustee is personally at 34
fault. 35
(3) A beneficiary is not personally liable to a third person for 36
an obligation arising from beneficial ownership of custodial trust 37
property or for a tort committed in the course of administration of 38
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the custodial trust unless the beneficiary is personally in 1
possession of the custodial trust property giving rise to the 2
liability or is personally at fault. 3
(4) Subsections (2) and (3) of this section do not preclude 4
actions or proceedings to establish liability of the custodial 5
trustee or beneficiary to the extent the person sued is protected as 6
the insured by liability insurance. 7
NEW SECTION. Sec. 13. DECLINATION, RESIGNATION, INCAPACITY, 8
DEATH, OR REMOVAL OF CUSTODIAL TRUSTEE, DESIGNATION OF SUCCESSOR 9
CUSTODIAL TRUSTEE. (1) Before accepting the custodial trust property, 10
a person designated as custodial trustee may decline to serve by 11
notifying the person who made the designation, the transferor, or the 12
transferor's legal representative. If an event giving rise to a 13
transfer has not occurred, the substitute custodial trustee 14
designated under section 3 of this act becomes the custodial trustee, 15
or, if a substitute custodial trustee has not been designated, the 16
person who made the designation may designate a substitute custodial 17
trustee pursuant to section 3 of this act. In other cases, the 18
transferor or the transferor's legal representative may designate a 19
substitute custodial trustee.20
(2) A custodial trustee who has accepted the custodial trust 21
property may resign by: (a) Delivering written notice to a successor 22
custodial trustee, if any, the beneficiary, and, if the beneficiary 23
is incapacitated, the beneficiary's conservator, if any; and (b) 24
transferring or registering, or recording an appropriate instrument 25
relating to, the custodial trust property, in the name of, and 26
delivering the records to, the successor custodial trustee identified 27
under subsection (3) of this section. 28
(3) If a custodial trustee or successor custodial trustee is 29
ineligible, resigns, dies, or becomes incapacitated, the successor 30
designated under section 2 (7) or 3 of this act becomes custodial 31
trustee. If there is no effective provision for a successor, the 32
beneficiary, if not incapacitated, may designate a successor 33
custodial trustee. If the beneficiary is incapacitated, or fails to 34
act within 90 days after the ineligibility, resignation, death, or 35
incapacity of the custodial trustee, the beneficiary's conservator 36
becomes successor custodial trustee. If the beneficiary does not have 37
a conservator or the conservator fails to act, the resigning 38
custodial trustee may designate a successor custodial trustee.39
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(4) If a successor custodial trustee is not designated pursuant 1
to subsection (3) of this section, the transferor, the legal 2
representative of the transferor or of the custodial trustee, an 3
adult member of the beneficiary's family, the guardian of the 4
beneficiary, a person interested in the custodial trust property, or 5
a person interested in the welfare of the beneficiary, may petition 6
the court to designate a successor custodial trustee.7
(5) A custodial trustee who declines to serve or resigns, or the 8
legal representative of a deceased or incapacitated custodial 9
trustee, as soon as practicable, shall put the custodial trust 10
property and records in the possession and control of the successor 11
custodial trustee. The successor custodial trustee may enforce the 12
obligation to deliver custodial trust property and records and 13
becomes responsible for each item as received. 14
(6) A beneficiary, the beneficiary's conservator, an adult member 15
of the beneficiary's family, a guardian of the person of the 16
beneficiary, a person interested in the custodial trust property, or 17
a person interested in the welfare of the beneficiary, may petition 18
the court to remove the custodial trustee for cause and designate a 19
successor custodial trustee, to require the custodial trustee to 20
furnish a bond or other security for the faithful performance of 21
fiduciary duties, or for other appropriate relief.22
NEW SECTION. Sec. 14. EXPENSES, COMPENSATION, AND BOND OF 23
CUSTODIAL TRUSTEE. Except as otherwise provided in the instrument 24
creating the custodial trust, in an agreement with the beneficiary, 25
or by court order, a custodial trustee:26
(1) Is entitled to reimbursement from custodial trust property 27
for reasonable expenses incurred in the performance of fiduciary 28
services; 29
(2) Has a noncumulative election, to be made no later than six 30
months after the end of each calendar year, to charge a reasonable 31
compensation for fiduciary services performed during that year; and32
(3) Need not furnish a bond or other security for the faithful 33
performance of fiduciary duties. 34
NEW SECTION. Sec. 15. REPORTING AND ACCOUNTING BY CUSTODIAL 35
TRUSTEE— DETERMINATION OF LIABILITY OF CUSTODIAL TRUSTEE. (1) Upon the 36
acceptance of custodial trust property, the custodial trustee shall 37
provide a written statement describing the custodial trust property 38
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and shall thereafter provide a written statement of the 1
administration of the custodial trust property: (a) Once each year; 2
(b) upon request at reasonable times by the beneficiary or the 3
beneficiary's legal representative; (c) upon resignation or removal 4
of the custodial trustee; and (d) upon termination of the custodial 5
trust. The statements must be provided to the beneficiary or to the 6
beneficiary's legal representative, if any. Upon termination of the 7
beneficiary's interest, the custodial trustee shall furnish a current 8
statement to the person to whom the custodial trust property is to be 9
delivered. 10
(2) A beneficiary, the beneficiary's legal representative, an 11
adult member of the beneficiary's family, a person interested in the 12
custodial trust property, or a person interested in the welfare of 13
the beneficiary may petition the court for an accounting by the 14
custodial trustee or the custodial trustee's legal representative.15
(3) A successor custodial trustee may petition the court for an 16
accounting by a predecessor custodial trustee. 17
(4) In an action or proceeding under this chapter or in any other 18
proceeding, the court may require or permit the custodial trustee or 19
the custodial trustee's legal representative to account. The 20
custodial trustee or the custodial trustee's legal representative may 21
petition the court for approval of final accounts.22
(5) If a custodial trustee is removed, the court shall require an 23
accounting and order delivery of the custodial trust property and 24
records to the successor custodial trustee and the execution of all 25
instruments required for transfer of the custodial trust property.26
(6) On petition of the custodial trustee or any person who could 27
petition for an accounting, the court, after notice to interested 28
persons, may issue instructions to the custodial trustee or review 29
the propriety of the acts of a custodial trustee or the 30
reasonableness of compensation determined by the custodial trustee 31
for the services of the custodial trustee or others.32
NEW SECTION. Sec. 16. LIMITATIONS OF ACTION AGAINST CUSTODIAL 33
TRUSTEE. (1) Except as provided in subsection (3) of this section, 34
unless previously barred by adjudication, consent, or limitation, a 35
claim for relief against a custodial trustee for accounting or breach 36
of duty is barred as to a beneficiary, a person to whom custodial 37
trust property is to be paid or delivered, or the legal 38
representative of an incapacitated or deceased beneficiary or payee:39
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(a) Who has received a final account or statement fully 1
disclosing the matter unless an action or proceeding to assert the 2
claim is commenced within two years after receipt of the final 3
account or statement; or 4
(b) Who has not received a final account or statement fully 5
disclosing the matter unless an action or proceeding to assert the 6
claim is commenced within three years after the termination of the 7
custodial trust. 8
(2) Except as provided in subsection (3) of this section, a claim 9
for relief to recover from a custodial trustee for fraud, 10
misrepresentation, or concealment related to the final settlement of 11
the custodial trust or concealment of the existence of the custodial 12
trust, is barred unless an action or proceeding to assert the claim 13
is commenced within five years after the termination of the custodial 14
trust. 15
(3) A claim for relief is not barred by this section if the 16
claimant: 17
(a) Is a minor, until the earlier of two years after the claimant 18
becomes an adult or dies; 19
(b) Is an incapacitated adult, until the earliest of two years 20
after: (i) The appointment of a conservator; (ii) the removal of the 21
incapacity; or (iii) the death of the claimant; or22
(c) Was an adult, now deceased, who was not incapacitated, until 23
two years after the claimant's death. 24
NEW SECTION. Sec. 17. DISTRIBUTION ON TERMINATION. (1) Upon 25
termination of a custodial trust, the custodial trustee shall 26
transfer the unexpended custodial trust property:27
(a) To the beneficiary, if not incapacitated or deceased;28
(b) To the conservator or other recipient designated by the court 29
for an incapacitated beneficiary; or 30
(c) Upon the beneficiary's death, in the following order:31
(i) As last directed in a writing signed by the deceased 32
beneficiary while not incapacitated and received by the custodial 33
trustee during the life of the deceased beneficiary;34
(ii) To the survivor of multiple beneficiaries if survivorship is 35
provided for pursuant to section 6 of this act; 36
(iii) As designated in the instrument creating the custodial 37
trust; or 38
(iv) To the estate of the deceased beneficiary.39
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(2) If, when the custodial trust would otherwise terminate, the 1
distributee is incapacitated, the custodial trust continues for the 2
use and benefit of the distributee as beneficiary until the 3
incapacity is removed or the custodial trust is otherwise terminated.4
(3) Death of a beneficiary does not terminate the power of the 5
custodial trustee to discharge obligations of the custodial trustee 6
or beneficiary incurred before the termination of the custodial 7
trust. 8
NEW SECTION. Sec. 18. METHODS AND FORMS FOR CREATING CUSTODIAL 9
TRUSTS. (1) If a transaction, including a declaration with respect to 10
or a transfer of specific property, otherwise satisfies applicable 11
law, the criteria of section 2 of this act are satisfied by:12
(a) The execution and either delivery to the custodial trustee or 13
recording of an instrument in substantially the following form:14
TRANSFER UNDER THE WASHINGTON UNIFORM CUSTODIAL TRUST ACT15
I, . . . . . (name of transferor or name and representative 16
capacity if a fiduciary), transfer to . . . . . (name of 17
trustee other than transferor), as custodial trustee 18
for . . . . . (name of beneficiary) as beneficiary 19
and . . . . . (name of distributee) as distributee on 20
termination of the trust in absence of direction by the 21
beneficiary under the Washington uniform custodial trust act, 22
the following: 23
. . . . . 24
. . . . . 25
(insert a description of the custodial trust property legally 26
sufficient to identify and transfer each item of property)27
Dated: . . . (date)28
. . . . . 29
(Signature); or 30
(b) The execution and the recording or giving notice of its 31
execution to the beneficiary of an instrument in substantially the 32
following form: 33
DECLARATION OF TRUST UNDER THE WASHINGTON UNIFORM CUSTODIAL TRUST ACT34
I, . . . . . (name of owner of property), declare that 35
henceforth I hold as custodial trustee for . . . . . (name of 36
beneficiary other than transferor) as beneficiary 37
and . . . . . (name of distributee) as distributee on 38
termination of the trust in absence of direction by the 39
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beneficiary under the Washington uniform custodial trust act, 1
the following: 2
. . . . . 3
. . . . . 4
(insert a description of the custodial trust property legally 5
sufficient to identify and transfer each item of property)6
Dated: . . . (date)7
. . . . . 8
(Signature)9
(2) Customary methods of transferring or evidencing ownership of 10
property may be used to create a custodial trust, including any of 11
the following: 12
(a) Registration of a security in the name of a trust company, an 13
adult other than the transferor, or the transferor if the beneficiary 14
is other than the transferor, designated in substance ". . . . . as 15
custodial trustee for . . . . . (name of beneficiary) under the 16
Washington uniform custodial trust act"; 17
(b) Delivery of a certificated security, or a document necessary 18
for the transfer of an uncertificated security, together with any 19
necessary endorsement, to an adult other than the transferor or to a 20
trust company as custodial trustee, accompanied by an instrument in 21
substantially the form prescribed in subsection (1)(a) of this 22
section; 23
(c) Payment of money or transfer of a security held in the name 24
of a broker or a financial institution or its nominee to a broker or 25
financial institution for credit to an account in the name of a trust 26
company, an adult other than the transferor, or the transferor if the 27
beneficiary is other than the transferor, designated in substance: 28
". . . . . as custodial trustee for . . . . . (name of beneficiary) 29
under the Washington uniform custodial trust act";30
(d) Registration of ownership of a life or endowment insurance 31
policy or annuity contract with the issuer in the name of a trust 32
company, an adult other than the transferor, or the transferor if the 33
beneficiary is other than the transferor, designated in substance: 34
". . . . . as custodial trustee for . . . . . (name of beneficiary) 35
under the Washington uniform custodial trust act";36
(e) Delivery of a written assignment to an adult other than the 37
transferor or to a trust company whose name in the assignment is 38
designated in substance by the words: ". . . . . as custodial trustee 39
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for . . . . . (name of beneficiary) under the Washington uniform 1
custodial trust act"; 2
(f) Irrevocable exercise of a power of appointment, pursuant to 3
its terms, in favor of a trust company, an adult other than the donee 4
of the power, or the donee who holds the power if the beneficiary is 5
other than the donee, whose name in the appointment is designated in 6
substance: ". . . . . as custodial trustee for . . . . . (name of 7
beneficiary) under the Washington uniform custodial trust act";8
(g) Delivery of a written notification or assignment of a right 9
to future payment under a contract to an obligor which transfers the 10
right under the contract to a trust company, an adult other than the 11
transferor, or the transferor if the beneficiary is other than the 12
transferor, whose name in the notification or assignment is 13
designated in substance: ". . . . . as custodial trustee 14
for . . . . . (name of beneficiary) under the Washington uniform 15
custodial trust act"; 16
(h) Execution, delivery, and recordation of a conveyance of an 17
interest in real property in the name of a trust company, an adult 18
other than the transferor, or the transferor if the beneficiary is 19
other than the transferor, designated in substance: ". . . . . as 20
custodial trustee for . . . . . (name of beneficiary) under the 21
Washington uniform custodial trust act"; 22
(i) Issuance of a certificate of title by an agency of a state or 23
of the United States which evidences title to tangible personal 24
property: 25
(A) Issued in the name of a trust company, an adult other than 26
the transferor, or the transferor if the beneficiary is other than 27
the transferor, designated in substance: ". . . . . as custodial 28
trustee for . . . . . (name of beneficiary) under the Washington 29
uniform custodial trust act"; or 30
(B) Delivered to a trust company or an adult other than the 31
transferor or endorsed by the transferor to that person, designated 32
in substance: ". . . . . as custodial trustee for . . . . . (name of 33
beneficiary) under the Washington uniform custodial trust act"; or34
(j) Execution and delivery of an instrument of gift to a trust 35
company or an adult other than the transferor, designated in 36
substance: ". . . . . as custodial trustee for . . . . . (name of 37
beneficiary) under the Washington uniform custodial trust act."38
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NEW SECTION. Sec. 19. APPLICABLE LAW. (1) This chapter applies 1
to a transfer or declaration creating a custodial trust that refers 2
to this chapter if, at the time of the transfer or declaration, the 3
transferor, beneficiary, or custodial trustee is a resident of or has 4
its principal place of business in this state or custodial trust 5
property is located in this state. The custodial trust remains 6
subject to this chapter despite a later change in residence or 7
principal place of business of the transferor, beneficiary, or 8
custodial trustee, or removal of the custodial trust property from 9
this state.10
(2) A transfer made pursuant to an act of another state 11
substantially similar to this chapter is governed by the law of that 12
state and may be enforced in this state. 13
NEW SECTION. Sec. 20. UNIFORMITY OF APPLICATION AND 14
CONSTRUCTION. This chapter shall be applied and construed to 15
effectuate its general purpose to make uniform the law with respect 16
to the subject of this chapter among states enacting it.17
NEW SECTION. Sec. 21. SHORT TITLE. This chapter may be known 18
and cited as the Washington uniform custodial trust act.19
Sec. 22. RCW 11.135.010 and 2024 c 188 s 2 are each amended to 20
read as follows: 21
In this chapter: 22
(1) "Electronic record" means a record created, generated, sent, 23
communicated, received, or stored by electronic means.24
(2) "Electronic signature" means an electronic symbol or process 25
attached to or logically associated with a record that uses a 26
security procedure and is executed or adopted by a person with the 27
intent to sign the record. 28
(3) "Information" includes data, text, images, codes, computer 29
programs, software, databases, and the like, and does not include 30
videos or sounds. 31
(4) "Nontestamentary estate planning document" means a record 32
relating to estate planning that is readable as text at the time of 33
signing and is not a will or contained in a will. The term:34
(a) Includes a record readable as text at the time of signing 35
that creates, exercises, modifies, releases, or revokes:36
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(i) An inter vivos trust governed by chapters 11.97, 11.98, 1
11.98B, 11.103, 11.110, ((and)) 11.118, and 11.--- (the new chapter 2
created in section 23 of this act) RCW; 3
(ii) A trust power held by a trustor, a trustee, a 4
beneficiary(([,])), or a third party that is granted under the terms 5
of a trust, under this title, specifically including chapters 11.97, 6
11.98, 11.98B, 11.103, 11.110, and 11.118 RCW, or by any other 7
statute or rule of law related to trusts that requires a writing, 8
written instrument, or a signed record or document;9
(iii) A certification of a trust under RCW 11.98.075;10
(iv) A power of attorney, including for health care of the 11
principal or of the principal's minor children, that is durable under 12
chapter 11.125 RCW; 13
(v) An agent's certification under RCW 11.125.430 of the validity 14
of a power of attorney and the agent's authority; 15
(vi) A power of appointment; 16
(vii) A health care directive under chapter 70.122 RCW;17
(viii) A document appointing an agent to dispose of an 18
individual's remains, directing disposition of an individual's 19
remains after death, or expressing wishes regarding an anatomical 20
gift; 21
(ix) A nomination of a guardian or conservator for the signing 22
individual; 23
(x) A nomination of a guardian or conservator for a minor child 24
or disabled adult child or a delegation of parental powers for a 25
minor child pursuant to RCW 11.130.145; 26
(xi) A mental health advance directive under chapter 71.32 RCW;27
(xii) A community property agreement as described in RCW 28
26.16.120; 29
(xiii) A disclaimer under RCW 11.86.011(5); 30
(xiv) A trust decanting under chapter 11.107 RCW;31
(xv) A separate writing directing the disposition of tangible 32
personal property under RCW 11.12.260; and 33
(xvi) Any other record intended to carry out an individual's 34
intent regarding property or health care while incapacitated or on 35
death; and 36
(b) Does not include: 37
(i) A deed of real property or certificate of title for a motor 38
vehicle, watercraft, or aircraft; or 39
(ii) A nonjudicial settlement agreement under RCW 11.96A.220.40
p. 17 SB 5037
(5) "Person" means an individual, estate, business or nonprofit 1
entity, government or governmental subdivision, agency, or 2
instrumentality, or other legal entity. 3
(6) "Security procedure" means a procedure employed for the 4
purpose of verifying that an electronic signature, record, or 5
performance is that of a specific person or for detecting changes or 6
errors in the information in an electronic record. The term includes 7
a procedure that requires the use of algorithms or other codes, 8
identifying words or numbers, encryption, or callback or other 9
acknowledgment procedures. 10
(7) "Sign" means, with present intent to authenticate or adopt a 11
record, to: 12
(a) Execute or adopt a tangible symbol; or 13
(b) Attach to or logically associate with the record an 14
electronic signature. 15
(8) "State" means a state of the United States, the District of 16
Columbia, Puerto Rico, the United States Virgin Islands, or any 17
territory or insular possession subject to the jurisdiction of the 18
United States. The term includes an Indian tribe or band, or Alaskan 19
native village, which is recognized by federal law or formally 20
acknowledged by a state. 21
NEW SECTION. Sec. 23. Sections 1 through 21 of this act 22
constitute a new chapter in Title 11 RCW.23
NEW SECTION. Sec. 24. SEVERABILITY. If any provision of this 24
act or its application to any person or circumstance is held invalid, 25
the remainder of the act or the application of the provision to other 26
persons or circumstances is not affected.27
--- END ---
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