Uniform Custodial Trust Act: A Bill Proposed for Introduction to the Washington State Legislature.
One of the primary goals of estate planning is to establish protective mechanisms for beneficiaries with varying needs. For instance, a young couple with children may opt for a trust and appoint a reliable trustee to manage assets until the children reach an age where they can responsibly handle their own finances. Alternatively, some individuals may consider custodianship under the Uniform Transfers to Minors Act (“UTMA”), appointing a custodian to oversee assets until the beneficiaries turn twenty-five (25).
While the UTMA custodianship is straightforward, it has limitations, notably that it terminates when beneficiaries reach the age of twenty-five (25). To address this, the Uniform Custodial Trust Act—or a similar bill—is likely to be introduced in the upcoming legislative session of the Washington State Legislature. This Act aims to provide a comparable mechanism for beneficiaries beyond the age limit set by the UTMA.
The primary goal of this Act is to simplify the process of establishing a custodial trust, offering a similar framework to the UTMA while potentially reducing costs. This Act may further benefit elderly individuals who may anticipate future incapacity. Specific details are still being finalized, and our office will provide updates as the proposed bill progresses through the legislative process.
To learn more about Uniform Custodial Trust Act, please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100