The bill introduces the Washington Uniform Custodial Trust Act, establishing a comprehensive legal framework for the creation and management of custodial trusts in the state. It defines essential terms such as "adult," "beneficiary," "custodial trustee," and "incapacitated," and allows for custodial trusts to be formed through written transfers or declarations. The act delineates the powers and duties of custodial trustees, including the management of trust property, adherence to beneficiary directions when not incapacitated, and the maintenance of accurate records. It also outlines procedures for terminating custodial trusts, managing multiple beneficiaries, and addressing the responsibilities of custodial trustees in cases of incapacity.

Furthermore, the bill includes new sections that detail the expenses and compensation of custodial trustees, methods for creating custodial trusts, and the distribution of trust property upon termination. It emphasizes the need for uniformity in the application of the law across states and amends existing definitions related to electronic records and signatures to ensure integration with the broader legal framework governing estate planning and trusts in Washington. Key provisions also allow for the appointment of successor custodial trustees, court petitions for trustee removal, and annual accounting requirements for custodial trustees to beneficiaries.

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