The bill introduces the Washington Uniform Custodial Trust Act, which establishes a comprehensive legal framework for the creation, management, and termination of custodial trusts. It defines essential terms such as "adult," "beneficiary," "custodial trustee," and "incapacitated," and allows for custodial trusts to be created 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 addresses the procedures for terminating custodial trusts, managing multiple beneficiaries, and the responsibilities of custodial trustees in cases of incapacity.

Additionally, the bill includes new sections that detail the expenses and compensation of custodial trustees, the methods for creating custodial trusts, and the applicable law governing these trusts. It emphasizes the importance of uniformity in the application of the law across states and provides protections for third parties dealing with custodial trustees. The act clarifies the legal definitions relevant to custodial trusts and specifies conditions for claims against custodial trustees, including time limitations for filing such claims. Overall, the bill aims to enhance the management of custodial trusts while ensuring accountability and transparency for all parties involved.

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