The Washington Uniform Custodial Trust Act establishes a comprehensive legal framework for the creation and management of custodial trusts. It defines essential terms such as "custodial trustee," "beneficiary," and "incapacitated," and outlines the procedures for establishing a custodial trust through written transfers or declarations. The bill delineates the rights and responsibilities of custodial trustees, emphasizing their duty to manage trust property for the benefit of the beneficiary and to adhere to the beneficiary's directions when they are not incapacitated. It also addresses the termination of custodial trusts, the appointment of successor custodial trustees, and the liabilities of custodial trustees, clarifying that they are not personally liable for certain obligations unless they fail to disclose their fiduciary capacity or are personally at fault.

Additionally, the bill introduces new provisions regarding the expenses and compensation of custodial trustees, allowing them to be reimbursed for reasonable expenses and to charge for fiduciary services. It establishes limitations on actions against custodial trustees, including specific timeframes for claims related to accounting or breaches of duty. The legislation aims to ensure uniform application and construction of the law across states, enhancing clarity and consistency in the management of custodial trusts in Washington. Overall, the act seeks to protect beneficiaries' interests while streamlining the management process for custodial trusts.

Statutes affected:
Original Bill: 11.135.010
Bill as Passed Legislature: 11.135.010
Session Law: 11.135.010