[WSBAPT] Trustee choice for Minor Settlement Trust, SPR RULE 98.16W(j)(3)(C)

[Nicholas Pleasants]

There are a lot of facts missing here, so it’s hard to say what the court might or might not approve. But theoretically yes, a lay person could qualify to serve as sole trustee or co-trustee of a MST and post a bond. Depending on the amount of money involved, those annual bond premiums could be a lot (see e.g. https://www.webondu.com/bond-rates). That’s one factor that might justify the cost of a professional fiduciary such as a trust company that is not required to purchase the bond. And the annual reporting is a bit cumbersome. I’ve never had a non-family lay person want to be involved on that level, but if there is a sophisticated family friend that can do this, then that’s great! I’d run this by the SGAL to take their temperature on it before I got too far along in the drafting process.
Best,
Nick

Nicholas Pleasants
Owner

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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of Michael Geoghegan <nwstrategyandplanning at outlook.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Wednesday, November 10, 2021 at 3:54 PM
To: "wsbapt at lists.wsbarppt.com" <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Trustee choice for Minor Settlement Trust, SPR RULE 98.16W(j)(3)(C)

Hi All,

I am drafting a Trust to hold settlement funds for a minor, to be approved in King County Ex Parte.  Client wants to name a family friend as the Trustee. The friend is capable but is not a professional fiduciary. SPR Rule 98.16W(j)(3)(C) requires the Trustee or Co-Trustee to be a "bonded or insured fiduciary" to serve as Trustee or Co-Trustee.

Must the Trustee be a professional fiduciary, not a regular human who puts up a bond with the court?

-Michael


Michael Geoghegan
Northwest Strategy and Planning, PLLC
t: 206.353.5592
e: michael at nwstrategyandplanning.com

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