[WSBAPT] New Uniform Custodial Trust Act SB 5037

[Eric Nelsen]

Can anybody tell me what the point is of the new Uniform Custodial Trust Act, SB 5037? (It's effective as of July 27 and is supposed to be a new chapter in Title 11 but I don't see that it has been codified yet.)
https://app.leg.wa.gov/billsummary?BillNumber=5037&Initiative=False&Year=2025

I get that it allows transfer of property to a trustee for the benefit of a beneficiary. But I don't see any spendthrift provision, and Sec. 2(5) appears to state that the beneficiary can terminate the trust at any time, at will:

(5) The beneficiary, if not incapacitated, or the conservator of an incapacitated beneficiary, may terminate a custodial trust by delivering to the custodial trustee a writing signed by the beneficiary or conservator declaring the termination. If not previously terminated, the custodial trust terminates on the death of the beneficiary.

If the beneficiary has the power to unilaterally terminate the trust at any time, how is this any different than simply giving the property to the beneficiary free of trust? Is there an EP or other advantage here that I'm not seeing, or am I misreading the statute?

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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