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<p class="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.)<o:p></o:p></span></p>
<p class="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><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">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>:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:11.0pt">(5) <span style="background:yellow;mso-highlight:yellow">
The beneficiary</span>, if not incapacitated, or the conservator of an incapacitated beneficiary,
<span style="background:yellow;mso-highlight: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.<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">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?<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;mso-ligatures:none">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">Sayre Law Offices, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none">206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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