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<p class="MsoNormal"><span style="font-size:11.0pt">Thanks Nick! I suppose that’s possible. It does seem to make more sense in cases where the beneficiary is, or becomes, incapacitated.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Sayre Law Offices, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><a href="mailto:eric@sayrelawoffices.com"><span style="color:#467886">eric@sayrelawoffices.com</span></a><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Nick Pleasants<br>
<b>Sent:</b> Tuesday, July 29, 2025 4:37 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] New Uniform Custodial Trust Act SB 5037<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="color:black">Hi Eric,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black">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 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.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black">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.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black">Best,<br>
Nick<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="elementtoproof"><b><span style="color:black">Nicholas Pleasants | Shareholder</span></b><o:p></o:p></p>
<p class="elementtoproof"><b><span style="color:black"> </span></b><o:p></o:p></p>
<p class="elementtoproof"><span style="color:#70AD47"><img border="0" width="222" height="94" style="width:2.3125in;height:.9791in" id="Picture_x0020_1" src="cid:image001.jpg@01DC00A8.67E50400" alt="OseranHahnAttyatLaw 8"></span><o:p></o:p></p>
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Main: (425) 455-3900 | Fax: (425) 455-9201 | E-mail: <a href="mailto:npleasants@ohswlaw.com">
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<p class="elementtoproof"><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:#1F497D">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
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>> on behalf of Eric Nelsen <<a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a>><br>
<b>Sent:</b> Tuesday, July 29, 2025 3:16 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] New Uniform Custodial Trust Act SB 5037</span> <o:p></o:p></p>
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<p class="xmsonormal"><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><o:p></o:p></p>
<p class="xmsonormal"><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><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
<p class="xmsonormal"><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><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
<p class="xmsonormal" style="margin-left:.5in"><span style="font-size:11.0pt">(5)
<span style="color:black;background:yellow">The beneficiary</span>, if not incapacitated, or the conservator of an incapacitated beneficiary,
<span style="color:black;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><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
<p class="xmsonormal"><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><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt">Sincerely,</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt">Eric</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt">Eric C. Nelsen</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt">Sayre Law Offices, PLLC</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt">1417 31st Ave South</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt">Seattle WA 98144-3909</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt">206-625-0092</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt"><a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a></span><o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
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