Washington law just got simpler and more flexible for trust planning. With the enactment of Senate Bill 5037, now known as the Washington Uniform Custodial Trust Act, individuals across the state can now establish custodial trusts under streamlined statutory guidelines starting July 27, 2025.

What Is the Uniform Custodial Trust Act?

Originally drafted by the Uniform Law Commission in 1987, UCTA offers a simplified mechanism, somewhat similar to the well-known Uniform Transfers to Minors Act (UTMA), which allows adults to transfer property into a custodial trust for their own use or that of another beneficiary. Washington’s version allows someone to create such a trust through a written transfer or declaration naming a custodial trustee and a beneficiary.

Why It Matters

Affordability and simplicity: No complex trust documents are required!  Simple written instructions can suffice.

Flexibility for adults: Beneficiaries retain the power to direct asset management or withdraw property, as long as they are not incapacitated.

Protection in incapacity: If the beneficiary becomes incapacitated, the custodial trustee shifts to managing the trust under a prudent-person standard, without needing court approval.

Ease of creation: Whether through deeds, security registrations, wills, or insurance designations, creating a custodial trust is straightforward.

Clear termination rules: The trust may be terminated by the (non-incapacitated) beneficiary, a conservator, or automatically upon the beneficiary’s death, with defined distribution procedures.

What It Means for You

For individuals: A custodial trust provides simplified, low-cost planning, which can be ideal for those wary of elaborate estate plans or high legal fees.

For families with special needs: Parents or loved ones can securely transfer assets to a trusted custodian without risking public benefits.

For those planning ahead: Especially useful for individuals facing potential incapacity, such as aging clients or those in transitional life phases.

How We Can Support You

Limitless Law PLLC is ready to assist clients in harnessing the UCTA to its fullest potential.  Whether that means drafting simple trust instruments, advising on beneficiary selection and trustee roles, or planning for succession and termination, we’ll help tailor your trust to align with your own personal and financial goals.

If you are seeking assistance with estate planning, probate, adoption, real estate transactions, or business legal questions, please don't hesitate to reach out to the experienced team at Limitless Law PLLC. We're here to help.

Call 360-685-0145 or click here to learn more