Proposed Changes to Washington’s Trust Statutes
Posted Wednesday, October 3, 2012 by John S. Palmer
Various changes to the statutes governing both revocable and irrevocable trusts in Washington are currently being considered by the Legislative Committee of the Washington State Bar Association for submission to the state legislature.
Among the changes being considered are technical corrections to legislation passed last year as SHB 1051, which took effect January 1, 2012 (the “2011 Act”).
The 2011 Act imposes an obligation on trustees to provide all persons with an interest in a trust with certain basic information about the trust within 60 days of becoming trustee of an irrevocable trust, or within 60 days of the date the trustee learns that a formerly revocable trust has become irrevocable. The 2011 Act also requires trustees of irrevocable trusts to keep all interested parties reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests.
The amendments now being considered by WSBA’s legislative committee include:
- Permitting a Trust’s grantor(s) to waive the requirement that a trustee provide information to beneficiaries within 60 days of becoming trustee of an irrevocable trust.
- More clearly defining when a person nominated to serve as Trustee has accepted or declined the appointment (in part, to clarify when the 60-day notice deadline expires.)
- More clearly defining the class of vested and contingent beneficiaries entitled to statutorily-required notices from the Trustee.
- Amending RCW 11.96A.070 to slightly modify the rules governing when the 3-year statute of limitations for claims against a Trustee begins to run.
- Modifying the rules regarding the doctrine of virtual representation (which permits one individual to enter into agreements pertaining to the Trust on behalf of more remote or similarly situated beneficiaries).
- Broadening the class of individuals who can petition the court to appoint a Special Representative to represent the interests of a minor or incapacitated trust beneficiary in any matter pertaining to the trust.
- Modifying the procedure for the nonjudicial consolidation of trusts set forth in RCW 11.98.080.
It is possible that one or more of these changes will be passed into law during the next regular session of the Washington State Legislature that begins January 14, 2013.
If you have any questions or would like to schedule an appointment, please call us at (425) 455-5513, toll free at (877) 455-5513, or info@palmerlegal.com.