[WSBAPT] Blocked financial account for minor beneficiary

Tue Jun 14 16:06:19 PDT 2016

Doug,

Thank you for the reply.  I agree with you that a distribution to a custodian under the UTMA, which would allow the funds to be held up to the minor’s 25th birthday, would be better than the minor getting all the funds at age 18  if a “boatload” of money were involved but the amount that the minor will inherit in this case is relatively small. I also agree there is nothing in the statute preventing the PR from serving as a custodian under the UTMA. However, I also don’t think there is anything obligating a PR to do so if they would prefer not to do so.

I respectfully disagree with your analysis of the statute, however. 11.076.095(1) directs that the funds be deposited in a blocked financial account subject to withdrawal only upon the order of the court in the original probate proceeding or the minor attaining the age of 18.  RCW 11.076.095(2) directs that the funds be paid or delivered to a guardian and (3) directs that they be transferred to a custodian subject to the UTMA.  Both guardians and UTMA custodians have the authority to use the funds for the benefit of the minor without first obtaining a court order so I don’t understand how the PR could do (1) in combination with (2) or (3). I think they are three distinct options.

Sincerely,
Jon M. Fritzler
Attorney at Law
PO Box 61451
Vancouver, WA 98666
Tel. 360.818.4431
Eml fritzlerlaw at outlook.com<mailto:fritzlerlaw at outlook.com>

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Douglas Bratt
Sent: Monday, June 13, 2016 4:35 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Blocked financial account for minor beneficiary

Jon:

I don’t think the bank is in the wrong in this instance (an unusual conclusion for me).

By my reading of the statute, you either have to appoint a Guardian (yuck) or pay it over to a custodian on behalf of the minor.  The statue appears to require the PR to do (1) in combination with (2) or for the PR to do (1) in combination with (3).

It appears that the statute has nothing in it that would prevent the PR, him/herself to serve as the custodian.

However, better yet, how about a distribution under the Uniform Transfers to Minors Act, which would allow funds to be held onto by a custodian, on behalf of the Minor, beyond his/her 18th birthday, up to, and including, the Minor’s 25th Birthday (which might be a desirable goal, depending upon how much money is involved.  If it is a “boatload” of money, better not to have an 18 year old getting it in time to have a multi-day or multi-week celebration to beat all celebrations of his/her birthday, and soon the money is gone.  If it is only a couple thousand dollars, it is probably not worth the extra hassle.)  Again, I have had the PR serve as the custodian under that statute.

Good luck.

Doug Bratt

Douglas J. Bratt
Lawyer

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jon Fritzler
Sent: Monday, June 13, 2016 2:45 PM
To: 'WSBA Probate & Trust Listserv'
Subject: [WSBAPT] Blocked financial account for minor beneficiary

Listmates,

I represent a PR with non-intervention powers in an estate where one of the beneficiaries is a minor. We are trying to open a blocked financial account for the minor’s share of the estate per RCW 11.76.095(1) (see below). Although I do not read the statute as requiring a PR with non-intervention powers to obtain a court order to open such an account, US Bank would not open the account without one. OK, so I got a court order directing the PR to distribute the minor’s share to a blocked account subject to withdrawal only upon the order of the court in the probate proceeding, or upon the beneficiary attaining the age of 18 and furnishing proof thereof satisfactory to the depositary.

However, US Bank still refuses to open the account because the order does not specify who is to be the custodian of the account!  The reason my client wanted to open a blocked financial account in the first place was because there aren’t any good candidates to serve as custodian of the funds for the minor. Has anyone had success opening a blocked financial account for a minor beneficiary pursuant to 11.76.095(1) without naming a custodian and, if so, at which financial institution?

RCW 11.76.095
When a decree of distribution is made by the court in administration upon a decedent's estate or
when distribution is made by a personal representative under a nonintervention will and
distribution is ordered under such decree or authorized under such nonintervention will to a person
under the age of eighteen years, it shall be required that:

(1) The money be deposited in a bank or trust company or be invested in an account in an
insured financial institution for the benefit of the minor subject to withdrawal only upon the
order of the court in the original probate proceeding, or upon said minor's attaining the age
of eighteen years and furnishing proof thereof satisfactory to the depositary;

(2) A general guardian shall be appointed and qualify and the money or property be paid or
delivered to such guardian prior to the discharge of the personal representative in the
original probate proceeding; or

(3) A custodian be selected and the money or property be transferred to the custodian subject
to chapter 11.114 RCW.

Sincerely,
Jon M. Fritzler
Attorney at Law
PO Box 61451
Vancouver, WA 98666
Tel. 360.818.4431
Eml fritzlerlaw at outlook.com<mailto:fritzlerlaw at outlook.com>

CONFIDENTIALITY
The information contained in this email is intended only for the use of the person or entity to whom it is addressed. This email may contain confidential or privileged information. If you are not the person whose name appears above, or the person responsible for delivering the email to the addressee, you are hereby notified that reading, using, copying, distributing or disseminating this communication is strictly prohibited. If you think that you have received this email message in error, please email the sender at fritzlerlaw at outlook.com<mailto:fritzlerlaw at outlook.com>. Thank you.
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