<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=Windows-1252">
<style type="text/css" style="display:none;"> P {margin-top:0;margin-bottom:0;} </style>
</head>
<body dir="ltr">
<div style="font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);" class="elementToProof">
Hi Eric,</div>
<div style="font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);" class="elementToProof">
As chair of the WSBA Elder Law Section, I reviewed the bill when it was introduced earlier this year. It was a little surprising to see it come up now, as the UCTA has been around since 1987. I read this law review article from 1989, attached and available
as a free download (<a id="LPlnk469115" href="http://scholarship.richmond.edu/lawreview/vol24/iss1/5">http://scholarship.richmond.edu/lawreview/vol24/iss1/5</a>), which discusses the UCTA as an alternative to guardianship. The UCTA somewhat parallels the UTMA,
but for adults instead of minors. "Like the UTMA, the UCTA allows any kind of property to be transferred toa custodial trustee." See that article at page 75. If you look at the UCTA as published by the ULC, also attached, there are a lot of comments discussing
the similarities and differences between the UTMA and UCTA.</div>
<div style="font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);" class="elementToProof">
I don't think I would use the UCTA in my practice, but to answer your question, I think the use case is similar to drafting a Revocable Living Trust in which the grantor is not the trustee but retains the control to amend and revoke the trust. If you think
about it from an Elder Law perspective, maybe someone with beginning stage dementia might want to use something like this as an alternative to guardianship.</div>
<div style="font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);" class="elementToProof">
Best,<br>
Nick</div>
<div class="elementToProof" id="Signature">
<div style="font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);" class="elementToProof">
<br>
</div>
<p class="elementToProof"><span style="font-size: 12pt; color: black;"><b>Nicholas Pleasants | Shareholder</b></span></p>
<p class="elementToProof"><span style="color: black;"><b> </b></span></p>
<p class="elementToProof"><span style="color: rgb(112, 173, 71);"><img style="width: 2.322in; height: 0.989in; margin-top: 0px; margin-bottom: 0px;" height="94" width="222" alt="OseranHahnAttyatLaw 8" data-outlook-trace="F:1|T:1" src="cid:0417ab2e-df30-40e3-a975-73056fbabe21"></span></p>
<p class="elementToProof"><span style="color: rgb(112, 173, 71);"> </span></p>
<p class="elementToProof"><span style="color: black;">11225 SE 6<sup>th</sup> Street | Suite 100 | Bellevue, WA 98004<br>
Main: (425) 455-3900 | Fax: (425) 455-9201 | E-mail: <a style="margin-top: 0px; margin-bottom: 0px;" class="OWAAutoLink" id="OWA27a1c4c4-114d-21fe-7f84-ae8e3d87ca9c" href="mailto:npleasants@ohswlaw.com">
npleasants@ohswlaw.com</a></span></p>
<p class="elementToProof"><span style="color: black;"> </span></p>
<p class="elementToProof"><span style="font-family: "Times New Roman", serif; font-size: 10pt; color: rgb(31, 73, 125);">CONFIDENTIALITY NOTE: This e-mail message contains information belonging to the law firm of Oseran Hahn, P.S., which may be privileged,
confidential and/or protected from disclosure. The information is intended only for the use of the individual or entity named above. If you think that you have received this message in error, please e-mail the sender. If you are not the intended recipient,
any dissemination, distribution or copying is strictly prohibited.</span></p>
<p class="elementToProof"><span style="font-family: "Times New Roman", serif; font-size: 10pt; color: rgb(31, 73, 125);"> </span></p>
</div>
<div id="appendonsend"></div>
<hr style="display:inline-block;width:98%" tabindex="-1">
<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> on behalf of Eric Nelsen <eric@sayrelawoffices.com><br>
<b>Sent:</b> Tuesday, July 29, 2025 3:16 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] New Uniform Custodial Trust Act SB 5037</font>
<div> </div>
</div>
<style>
<!--
@font-face
{font-family:"Cambria Math"}
@font-face
{font-family:Aptos}
p.x_MsoNormal, li.x_MsoNormal, div.x_MsoNormal
{margin:0in;
font-size:12.0pt;
font-family:"Aptos",sans-serif}
a:link, span.x_MsoHyperlink
{color:#467886;
text-decoration:underline}
span.x_EmailStyle17
{font-family:"Aptos",sans-serif;
color:windowtext}
.x_MsoChpDefault
{}
@page WordSection1
{margin:1.0in 1.0in 1.0in 1.0in}
div.x_WordSection1
{}
-->
</style>
<div lang="EN-US" link="#467886" vlink="#96607D" style="word-wrap:break-word">
<div class="x_WordSection1">
<p class="x_MsoNormal"><span style="font-size:11.0pt">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.)</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"><a href="https://app.leg.wa.gov/billsummary?BillNumber=5037&Initiative=False&Year=2025">https://app.leg.wa.gov/billsummary?BillNumber=5037&Initiative=False&Year=2025</a></span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">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
<b><i>at any time, at will</i></b>:</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
<p class="x_MsoNormal" style="margin-left:.5in"><span style="font-size:11.0pt">(5)
<span style="background:yellow">The beneficiary</span>, if not incapacitated, or the conservator of an incapacitated beneficiary,
<span style="background:yellow">may terminate a custodial trust by delivering to the custodial trustee a writing signed by the beneficiary or conservator declaring the termination</span>. If not previously terminated, the custodial trust terminates on the death
of the beneficiary.</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">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?</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Sincerely,</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Eric</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"> </span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Eric C. Nelsen</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Sayre Law Offices, PLLC</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">1417 31st Ave South</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">Seattle WA 98144-3909</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt">206-625-0092</span></p>
<p class="x_MsoNormal"><span style="font-size:11.0pt"><a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a></span></p>
<p class="x_MsoNormal"> </p>
</div>
</div>
</body>
</html>