title: RCW 11.07.010

text:
(1) This section applies to all nonprobate assets, wherever situated, held at the time of entry of a decree of dissolution of marriage or state registered domestic partnership or a declaration of invalidity or certification of termination of a state registered domestic partnership.
(2)(a) If a marriage or state registered domestic partnership is dissolved or invalidated, or a state registered domestic partnership terminated, a provision made prior to that event that relates to the payment or transfer at death of the decedent's interest in a nonprobate asset in favor of or granting an interest or power to the decedent's former spouse or state registered domestic partner, is revoked. A provision affected by this section must be interpreted, and the nonprobate asset affected passes, as if the former spouse or former state registered domestic partner, failed to survive the decedent, having died at the time of entry of the decree of dissolution or declaration of invalidity or termination of state registered domestic partnership.
(b) This subsection does not apply if and to the extent that:
(i) The instrument governing disposition of the nonprobate asset expressly provides otherwise;
(ii) The decree of dissolution, declaration of invalidity, or other court order requires that the decedent maintain a nonprobate asset for the benefit of a former spouse or former state registered domestic partner or children of the marriage or domestic partnership, payable on the decedent's death either outright or in trust, and other nonprobate assets of the decedent fulfilling such a requirement for the benefit of the former spouse or former state registered domestic partner or children of the marriage or domestic partnership do not exist at the decedent's death;
(iii) A court order requires that the decedent maintain a nonprobate asset for the benefit of another, payable on the decedent's death either outright or in a trust, and other nonprobate assets of the decedent fulfilling such a requirement do not exist at the decedent's death; or
(iv) If not for this subsection, the decedent could not have effected the revocation by unilateral action because of the terms of the decree, declaration, termination of state registered domestic partnership, or for any other reason, immediately after the entry of the decree of dissolution, declaration of invalidity, or termination of state registered domestic partnership.
(3)(a) A payor or other third party in possession or control of a nonprobate asset at the time of the decedent's death is not liable for making a payment or transferring an interest in a nonprobate asset to a decedent's former spouse or state registered domestic partner, whose interest in the nonprobate asset is revoked under this section, or for taking another action in reliance on the validity of the instrument governing disposition of the nonprobate asset, before the payor or other third party has actual knowledge of the dissolution or other invalidation of marriage or termination of the state registered domestic partnership. A payor or other third party is liable for a payment or transfer made or other action taken after the payor or other third party has actual knowledge of a revocation under this section.
(b) This section does not require a payor or other third party to pay or transfer a nonprobate asset to a beneficiary designated in a governing instrument affected by the dissolution or other invalidation of marriage or termination of state registered domestic partnership, or to another person claiming an interest in the nonprobate asset, if the payor or third party has actual knowledge of the existence of a dispute between the former spouse or former state registered domestic partner, and the beneficiaries or other persons concerning rights of ownership of the nonprobate asset as a result of the application of this section among the former spouse or former state registered domestic partner, and the beneficiaries or among other persons, or if the payor or third party is otherwise uncertain as to who is entitled to the nonprobate asset under this section. In such a case, the payor or third party may, without liability, notify in writing all beneficiaries or other persons claiming an interest in the nonprobate asset of either the existence of the dispute or its uncertainty as to who is entitled to payment or transfer of the nonprobate asset. The payor or third party may also, without liability, refuse to pay or transfer a nonprobate asset in such a circumstance to a beneficiary or other person claiming an interest until the time that either:
(i) All beneficiaries and other interested persons claiming an interest have consented in writing to the payment or transfer; or
(ii) The payment or transfer is authorized or directed by a court of proper jurisdiction.
(c) Notwithstanding subsections (1) and (2) of this section and (a) and (b) of this subsection, a payor or other third party having actual knowledge of the existence of a dispute between beneficiaries or other persons concerning rights to a nonprobate asset as a result of the application of this section may condition the payment or transfer of the nonprobate asset on execution, in a form and with security acceptable to the payor or other third party, of a bond in an amount that is double the fair market value of the nonprobate asset at the time of the decedent's death or the amount of an adverse claim, whichever is the lesser, or of a similar instrument to provide security to the payor or other third party, indemnifying the payor or other third party for any liability, loss, damage, costs, and expenses for and on account of payment or transfer of the nonprobate asset.
(d) As used in this subsection, "actual knowledge" means, for a payor or other third party in possession or control of the nonprobate asset at or following the decedent's death, written notice to the payor or other third party, or to an officer of a payor or third party in the course of his or her employment, received after the decedent's death and within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge. The notice must identify the nonprobate asset with reasonable specificity. The notice also must be sufficient to inform the payor or other third party of the revocation of the provisions in favor of the decedent's spouse or state registered domestic partner, by reason of the dissolution or invalidation of marriage or termination of state registered domestic partnership, or to inform the payor or third party of a dispute concerning rights to a nonprobate asset as a result of the application of this section. Receipt of the notice for a period of more than thirty days is presumed to be received within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge, but receipt of the notice for a period of less than five business days is presumed not to be a sufficient time for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.
(4)(a) A person who purchases a nonprobate asset from a former spouse, former state registered domestic partner, or other person, for value and without actual knowledge, or who receives from a former spouse, former state registered domestic partner, or other person payment or transfer of a nonprobate asset without actual knowledge and in partial or full satisfaction of a legally enforceable obligation, is neither obligated under this section to return the payment, property, or benefit nor is liable under this section for the amount of the payment or the value of the nonprobate asset. However, a former spouse, former state registered domestic partner, or other person who, with actual knowledge, not for value, or not in satisfaction of a legally enforceable obligation, receives payment or transfer of a nonprobate asset to which that person is not entitled under this section is obligated to return the payment or nonprobate asset, or is personally liable for the amount of the payment or value of the nonprobate asset, to the person who is entitled to it under this section.
(b) As used in this subsection, "actual knowledge" means, for a person described in (a) of this subsection who purchases or receives a nonprobate asset from a former spouse, former state registered domestic partner, or other person, personal knowledge or possession of documents relating to the revocation upon dissolution or invalidation of marriage of provisions relating to the payment or transfer at the decedent's death of the nonprobate asset, received within a time after the decedent's death and before the purchase or receipt that is sufficient to afford the person purchasing or receiving the nonprobate asset reasonable opportunity to act upon the knowledge. Receipt of the personal knowledge or possession of the documents for a period of more than thirty days is presumed to be received within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge, but receipt of the notice for a period of less than five business days is presumed not to be a sufficient time for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.
(5)(a) As used in this section, "nonprobate asset" means those rights and interests of a person having beneficial ownership of an asset that pass on the person's death under only the following written instruments or arrangements other than the decedent's will:
(i) A payable-on-death provision of a life insurance policy, employee benefit plan, annuity or similar contract, or individual retirement account, unless provided otherwise by controlling federal law;
(ii) A payable-on-death, trust, or joint with right of survivorship bank account;
(iii) A trust of which the person is a grantor and that becomes effective or irrevocable only upon the person's death;
(iv) Transfer on death beneficiary designations of a transfer on death or pay on death security, or joint tenancy or joint tenancy with right of survivorship designations of a security, if such designations are authorized under Washington law;
(v) A transfer on death, pay on death, joint tenancy, or joint tenancy with right of survivorship brokerage account;
(vi) A transfer on death deed;
(vii) Unless otherwise specifically provided therein, a contract wherein payment or performance under that contract is affected by the death of the person; or
(viii) Unless otherwise specifically provided therein, any other written instrument of transfer, within the meaning of RCW 11.02.091(3), containing a provision for the nonprobate transfer of an asset at death.
(b) For the general definition in this title of "nonprobate asset," see *RCW 11.02.005(10) and for the definition of "nonprobate asset" relating to testamentary disposition of nonprobate assets, see RCW 11.11.010(7). For the purposes of this chapter, a "bank account" includes an account into or from which cash deposits and withdrawals can be made, and includes demand deposit accounts, time deposit accounts, money market accounts, or certificates of deposit, maintained at a bank, savings and loan association, credit union, brokerage house, or similar financial institution.
(6) This section is remedial in nature and applies as of July 25, 1993, to decrees of dissolution and declarations of invalidity entered after July 24, 1993, and this section applies as of January 1, 1995, to decrees of dissolution and declarations of invalidity entered before July 25, 1993.
[ 2014 c 58 s 19; 2008 c 6 s 906. Prior: 2007 c 475 s 2; 2007 c 156 s 13; 2002 c 18 s 1; 1998 c 292 s 118; 1997 c 252 s 2; 1994 c 221 s 2; 1993 c 236 s 1.]
Notes:
*Reviser's note: RCW 11.02.005 was amended by 2021 c 140 s 1012, changing subsection (10) to subsection (13), effective January 1, 2022. RCW 11.02.005 was subsequently amended by 2026 c 204 s 15, changing subsection (13) to subsection (14).
Uniformity of application and construction—Relation to electronic signatures in global and national commerce act—2014 c 58: See RCW 64.80.903 and 64.80.904.
Part headings not law—Severability—2008 c 6: See RCW 26.60.900 and 26.60.901.
Effective dates—1998 c 292: See RCW 11.11.903.
Application—1997 c 252 ss 1-73: See note following RCW 11.02.005.
Effective dates—1994 c 221: See note following RCW 11.100.035.

catchline: Nonprobate assets—Dissolution or invalidation of marriage or domestic partnership—Termination of domestic partnership.


doc_type: statute

jurisdiction: wa

title: RCW 11.08.101

text:
Where, upon the expiration of two years after the death of any inmate of any state institution, there remains in the custody of the superintendent of such institution, money or property belonging to said deceased inmate, the superintendent shall forward such money to the state treasurer for deposit in the general fund of the state, and shall report such transfer and any remaining property to the department of corrections, which department shall cause the sale of such property and proceeds thereof shall be forwarded to the state treasurer for deposit in the general fund.
[ 1981 c 136 s 58; 1979 c 141 s 10; 1965 c 145 s 11.08.101. Prior: 1951 c 138 s 1; prior: 1923 c 113 s 1; RRS s 1363-1.]
Notes:
Effective date—1981 c 136: See RCW 72.09.900.
Abandoned inmate personal property: RCW 63.42.030, 63.42.040.
State institutions: Title 72 RCW.

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Property of deceased inmates of state institutions—Disposition after two years.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 11.08.111

text:
Prior to the expiration of the two-year period provided for in RCW 11.08.101, the superintendent may transfer such money or property in his or her possession, upon request and satisfactory proof submitted to him or her, to the following designated persons:
(1) To the personal representative of the estate of such deceased inmate; or
(2) To the successor or successors defined in RCW 11.62.005, where such money and property does not exceed the amount specified in RCW 6.13.030, and the successor or successors shall have furnished proof of death and an affidavit made by said successor or successors meeting the requirements of RCW 11.62.010; or
(3) In the case of money, to the person who may have deposited such money with the superintendent for the use of the decedent, where the sum involved does not exceed one thousand dollars; or
(4) To the department of social and health services, when there are moneys due and owing from such deceased person's estate for the cost of his or her care and maintenance at a state institution: PROVIDED, That transfer of such money or property may be made to the person first qualifying under this section and such transfer shall exonerate the superintendent from further responsibility relative to such money or property: AND PROVIDED FURTHER, That upon satisfactory showing the funeral expenses of such decedent are unpaid, the superintendent may pay up to one thousand dollars from said deceased inmate's funds on said obligation.
[ 2010 c 8 s 2006; 1990 c 225 s 2; 1973 1st ex.s. c 76 s 1; 1965 c 145 s 11.08.111. Prior: 1959 c 240 s 1; 1951 c 138 s 2.]
Notes:
Abandoned inmate personal property: RCW 63.42.030, 63.42.040.

catchline: Property of deceased inmates of state institutions—Disposition within two years.


title: RCW 11.08.120

text:
The property, other than money, of such deceased inmate remaining in the custody of a superintendent of a state institution after the expiration of the above two-year period may be forwarded to the department of corrections at its request and may be appraised and sold at public auction to the highest bidder in the manner and form as provided for public sales of personal property, and all moneys realized upon such sale, after deducting the expenses thereof, shall be paid into the general fund of the state treasury.
[ 1981 c 136 s 59; 1979 c 141 s 11; 1965 c 145 s 11.08.120. Prior: 1951 c 138 s 3; prior: 1923 c 113 s 2; RRS s 1363-2.]
Notes:
Effective date—1981 c 136: See RCW 72.09.900.
Abandoned inmate personal property: RCW 63.42.030, 63.42.040.

catchline: Property of deceased inmates of state institutions—Sale—Disposition of proceeds.


title: RCW 11.08.140

text:
Whenever any person dies, whether a resident of this state or not, leaving property subject to the jurisdiction of this state and without being survived by any person entitled to the same under the laws of this state, such property shall be designated escheat property and shall be subject to the provisions of RCW 11.08.140 through 11.08.280.
[ 1965 c 145 s 11.08.140. Prior: 1955 c 254 s 2.]

catchline: Escheat for want of heirs.


title: RCW 11.08.150

text:
Title to escheat property, which shall include any intangible personalty, shall vest in the state at the death of the owner thereof.
[ 1965 c 145 s 11.08.150. Prior: 1955 c 254 s 3.]

catchline: Title to property vests in state at death of owner.


title: RCW 11.08.160

text:
The department of revenue of this state shall have supervision of and jurisdiction over escheat property and may institute and prosecute any proceedings, including any proceeding under chapter 11.62 RCW, deemed necessary or proper in the handling of such property, and it shall be the duty of the department of revenue to protect and conserve escheat property for the benefit of the permanent common school fund of the state until such property or the proceeds thereof have been forwarded to the state treasurer or the department of natural resources as hereinafter provided.
[ 1988 c 128 s 1; 1988 c 64 s 23; 1975 1st ex.s. c 278 s 1; 1965 c 145 s 11.08.160. Prior: 1955 c 254 s 4.]
Notes:
Reviser's note: This section was amended by 1988 c 64 s 23 and by 1988 c 128 s 1, each without reference to the other. Both amendments are incorporated in the publication of this section pursuant to RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Severability—1975 1st ex.s. c 278: "If any provision of this 1975 amendatory act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [ 1975 1st ex.s. c 278 s 215.]
Construction—1975 1st ex.s. c 278: "The legislature hereby reaffirms its singular intent under this amendatory act to change the designation of the state tax commission to the department of revenue or the board of tax appeals, as the case may be, and to make explicit its intent that no rights, duties, obligations or benefits, of whatsoever kind, are to be construed as changed as a result of the enactment hereof." [ 1975 1st ex.s. c 278 s 217.]


title: RCW 11.08.170

text:
Escheat property may be probated under the provisions of the probate laws of this state. Whenever such probate proceedings are instituted, whether by special administration or otherwise, the petitioner shall promptly notify the department of revenue in writing thereof on forms furnished by the department of revenue to the county clerks. Thereafter, the department of revenue shall be served with written notice at least twenty days prior to any hearing on proceedings involving the valuation or sale of property, on any petition for the allowance of fees, and on all interim reports, final accounts or petitions for the determination of heirship. Like notice shall be given of the presentation of any claims to the court for allowance. Failure to furnish such notice shall be deemed jurisdictional and any order of the court entered without such notice shall be void. The department of revenue may waive the provisions of this section in its discretion. The department shall be deemed to have waived its right to administer in such probate proceedings under *RCW 11.28.120(5) unless application for appointment of the director or the director's designee is made within forty days immediately following receipt of notice of institution of proceedings.
[ 1994 c 221 s 3; 1990 c 225 s 1; 1975 1st ex.s. c 278 s 2; 1965 c 145 s 11.08.170. Prior: 1955 c 254 s 5.]
Notes:
*Reviser's note: RCW 11.28.120 was amended by 2026 c 204 s 2, changing subsection (5) to subsection (1)(e)(i) and (ii).
Effective dates—1994 c 221: See note following RCW 11.100.035.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Probate of escheat property—Notice to department of revenue.


title: RCW 11.08.180

text:
The department of revenue may demand copies of any papers, documents, or pleadings involving the escheat property or the probate thereof deemed by it to be necessary for the enforcement of RCW 11.08.140 through 11.08.280 and it shall be the duty of the administrator or his or her attorney to furnish such copies to the department.
[ 2010 c 8 s 2007; 1975 1st ex.s. c 278 s 3; 1965 c 145 s 11.08.180. Prior: 1955 c 254 s 6.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Department of revenue to be furnished copies of documents and pleadings.


title: RCW 11.08.185

text:
All records of the department of revenue relating to escheated property or property about to escheat shall be a public record and shall be made available by the department of revenue for public inspection. Without limitation, the records to be made public shall include all available information regarding possible heirs, descriptions and amounts of property escheated or about to escheat, and any information which might serve to identify the proper heirs.
[ 1973 c 25 s 1.]

catchline: Escheat property—Records of department of revenue—Public record information.


title: RCW 11.08.200

text:
If any person shall take possession of escheat property without proper authorization to do so, and shall have the use thereof for a period exceeding sixty days, he or she shall be liable to the state for the reasonable value of such use, payment of which may be enforced by the department of revenue or by the administrator of the estate.
[ 2010 c 8 s 2008; 1975 1st ex.s. c 278 s 4; 1965 c 145 s 11.08.200. Prior: 1955 c 254 s 8.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Liability for use of escheated property.


title: RCW 11.08.205

text:
(1) The department of natural resources shall have the authority to lease real property from the administrator of an estate being probated under the escheat provisions, RCW 11.08.140 to 11.08.280.
(2) The department of natural resources shall have the authority to sublease or rent the real property, it has leased under subsection (1) of this section, during the period that the real property is under the authority of the court appointed administrator.
(3) Any moneys gained by the department of natural resources from leases or rentals shall be credited to an escheat reserve account bearing the name of the estate.
(4) The department of natural resources shall have the authority to expend moneys to preserve and maintain the real property during the probate period.
(5) Any expenses by the department of natural resources in preserving or maintaining the real property may be paid as follows:
(a) First, the expenses shall be charged to the escheat reserve account bearing the name of the estate; and
(b) Second, if the expenses exceed the escheat reserve account, then the expenses shall be paid as follows:
(i) If the land is distributed to the state by the administrator, the expenses shall be paid out of the sale price of the land as later sold by the department of natural resources, or shall be paid out of the general fund if the land is held for use by the state; or
(ii) If the land is distributed to the heirs by the administrator, the expenses shall be borne by the estate.
(6) Upon the final distribution of the real property, the escheat reserve account shall be closed out as follows:
(a) If the real property is distributed to the state, the balance of the account shall be paid into the permanent common school fund of the state; or
(b) If the real property is distributed to the heirs, the balance of the account shall be paid to the estate.
[ 1969 ex.s. c 249 s 1.]

catchline: Lease, sublease, or rental of escheated real property—Authorized—Expenses—Distribution of proceeds.


title: RCW 11.08.210

text:
If at the expiration of four months from the date of the first publication of notice to creditors no heirs have appeared and established their claim to the estate, the court may enter an interim order allowing claims, expenses, and partial fees. If at the expiration of ten months from the date of issuance of letters testamentary or of administration no heirs have appeared and established their claim to the estate, all personal property not in the form of cash shall be sold under order of the court. Personal property found by the court to be worthless shall be ordered abandoned. Real property shall not be sold for the satisfaction of liens thereon, or for the payment of the debts of decedent or expenses of administration until the proceeds of the personal property are first exhausted. The court shall then enter a decree allowing any additional fees and charges deemed proper and distributing the balance of the cash on hand, together with any real property, to the state. Remittance of cash on hand shall be made to the department of revenue which shall make proper records thereof and forthwith forward such funds to the state treasurer for deposit in the permanent common school fund of the state.
[ 1979 ex.s. c 209 s 19; 1975 1st ex.s. c 278 s 5; 1965 c 145 s 11.08.210. Prior: 1955 c 254 s 9.]
Notes:
Effective date—Applicability—1979 ex.s. c 209: "This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions; shall take effect immediately; and shall be effective with respect to persons dying after the effective date of this act." [ 1979 ex.s. c 209 s 52.] The effective date of 1979 ex.s. c 209 was May 29, 1979.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Allowance of claims, expenses, partial fees—Sale of property—Decree of distribution.


title: RCW 11.08.220

text:
The department of revenue shall be furnished two certified copies of the decree of the court distributing any real property to the state, one of which shall be forwarded to the department of natural resources which shall thereupon assume supervision of and jurisdiction over such real property and thereafter handle it the same as state common school lands. The administrator shall also file a certified copy of the decree with the auditor of any county in which the escheated real property is situated.
[ 1988 c 128 s 2; 1975 1st ex.s. c 278 s 6; 1965 c 145 s 11.08.220. Prior: 1957 c 125 s 1; 1955 c 254 s 10.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.
Management of acquired lands by department of natural resources: RCW 79.10.030.

catchline: Certified copies of decree—Department of natural resources duties.


title: RCW 11.08.230

text:
Upon the appearance of heirs and the establishment of their claim to the satisfaction of the court prior to entry of the decree of distribution to the estate, the provisions of RCW 11.08.140 through 11.08.280 shall not further apply, except for purposes of appeal: PROVIDED, That the department of revenue shall be promptly given written notice of such appearance by the claimants and furnished copies of all papers or documents on which such claim of heirship is based. Any documents in a foreign language shall be accompanied by translations made by a properly qualified translator, certified by him or her to be true and correct translations of the original documents. The administrator or his or her attorney shall also furnish the department of revenue with any other available information bearing on the validity of the claim.
[ 2010 c 8 s 2009; 1975 1st ex.s. c 278 s 7; 1965 c 145 s 11.08.230. Prior: 1955 c 254 s 11.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Appearance and claim of heirs—Notices to department of revenue.


title: RCW 11.08.240

text:
Any claimant to escheated funds or real property shall have seven years from the date of issuance of letters testamentary or of administration within which to file his or her claim. Such claim shall be filed with the court having original jurisdiction of the estate, and a copy thereof served upon the department of revenue, together with twenty days notice of the hearing thereon.
[ 2010 c 8 s 2010; 1975 1st ex.s. c 278 s 8; 1965 c 145 s 11.08.240. Prior: 1955 c 254 s 12.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Limitation on filing claim.


title: RCW 11.08.250

text:
Upon establishment of the claim to the satisfaction of the court, it shall order payment to the claimant of any escheated funds and delivery of any escheated land, or the proceeds thereof, if sold. If, however, the escheated property shall have been transferred to the state parks and recreation commission or local jurisdiction for park purposes, the court shall order payment to the claimant for the fair market value of the property at the time of transfer, excluding the value of physical improvements to the property while managed by a state agency or local jurisdiction. The value shall be established by independent appraisal obtained by the department of revenue.
[ 1993 c 49 s 2; 1965 c 145 s 11.08.250. Prior: 1955 c 254 s 13.]
Notes:
Parkland: RCW 79.10.030.

catchline: Order of court on establishment of claim—Parklands—Appraisal.


title: RCW 11.08.260

text:
In the event the order of the court requires the payment of escheated funds or the proceeds of the sale of escheated real property or the appraised value of escheated property transferred for park purposes, a certified copy of such order shall be served upon the department of revenue which shall thereupon take any steps necessary to effect payment to the claimant out of the general fund of the state.
[ 1993 c 49 s 3; 1975 1st ex.s. c 278 s 9; 1965 c 145 s 11.08.260. Prior: 1955 c 254 s 14.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Payment of escheated funds to claimant.


title: RCW 11.08.270

text:
In the event the order of the court requires the delivery of real property to the claimant, a certified copy of such order shall be served upon the department of natural resources which shall thereupon make proper certification to the office of the governor for issuance of a quitclaim deed for the property to the claimant.
[ 1988 c 128 s 3; 1965 c 145 s 11.08.270. Prior: 1955 c 254 s 15.]

catchline: Conveyance of escheated property to claimant.


title: RCW 11.08.280

text:
The claims of any persons to escheated funds or real property which are not filed within seven years as specified above are forever barred, excepting as to those persons who are minors or who are legally incompetent and not under guardianship, in which event the claim may be filed within seven years after their disability is removed.
[ 1965 c 145 s 11.08.280. Prior: 1955 c 254 s 16.]

catchline: Limitation when claimant is minor or incompetent not under guardianship.


title: RCW 11.08.290

text:
All cash received by the personal representative of an escheat estate shall be immediately deposited at interest for the benefit of the estate in a federally insured time or savings deposit or share account, except that the personal representative may maintain an amount not to exceed two hundred fifty dollars in a checking account. This arrangement may be changed by appropriate court order.
[ 1979 ex.s. c 209 s 18.]
Notes:
Effective date—Applicability—1979 ex.s. c 209: See note following RCW 11.08.210.

catchline: Deposit of cash received by personal representative of escheat estate.


title: RCW 11.08.300

text:
Escheat property may be transferred to the department of revenue under the provisions of RCW 11.62.005 through 11.62.020. The department of revenue shall furnish proof of death and an affidavit made by the department which meets the requirements of RCW 11.62.010 to any person who is indebted to or has possession of any personal property belonging to the decedent or to the decedent and his or her surviving spouse or surviving domestic partner as a community, which debt or personal property is an asset which is subject to probate. Upon receipt of such proof of death and affidavit, the person shall pay the indebtedness or deliver the personal property, or as much of either as is claimed, to the department of revenue pursuant to RCW 11.62.010.
The department of revenue shall file a copy of its affidavit made pursuant to chapter 11.62 RCW with the clerk of the court where any probate administration of the decedent has been commenced, or, if no probate administration has been commenced, then with the clerk of the court of any county provided by law as a place for probate administration of the estate of such person. The affidavit shall be indexed under the name of the decedent in the probate index upon payment of a fee of two dollars. Any claimant to escheated funds shall have seven years from the filing of the affidavit by the department of revenue within which to file the claim. The claim shall be filed with the clerk of the court where the affidavit of the department of revenue was filed, and a copy served upon the department of revenue, together with twenty days notice of a hearing to be held thereon, and the provisions of RCW 11.08.250 through 11.08.280 shall apply.
[ 2008 c 6 s 907; 1990 c 225 s 3.]
Notes:
Part headings not law—Severability—2008 c 6: See RCW 26.60.900 and 26.60.901.

catchline: Transfer of property to department of revenue.


title: RCW 11.10.010

text:
(1) Except as provided in subsection (2) of this section, property of a decedent abates, without preference as between real and personal property, in the following order:
(a) Intestate property;
(b) Residuary gifts;
(c) General gifts;
(d) Specific gifts.
For purposes of abatement a demonstrative gift, defined as a general gift charged on any specific property or fund, is deemed a specific gift to the extent of the value of the property or fund on which it is charged, and a general gift to the extent of a failure or insufficiency of that property or fund. Abatement within each classification is in proportion to the amounts of property each of the beneficiaries would have received if full distribution of the property had been made in accordance with the terms of the will.
(2) If the will expresses an order of abatement, or if the testamentary plan or the express or implied purpose of the devise would be defeated by the order of abatement stated in subsection (1) of this section, a gift abates as may be found necessary to give effect to the intention of the testator.
(3) If the subject of a preferred gift is sold, diminished, or exhausted incident to administration, not including satisfaction of debts or liabilities according to their community or separate status under RCW 11.10.030, abatement must be achieved by appropriate adjustments in, or contribution from, other interests in the remaining assets.
(4) To the extent that the whole of the community property is subject to abatement, the shares of the decedent and of the surviving spouse or surviving domestic partner in the community property abate equally.
(5) If required under RCW 11.10.040, nonprobate assets must abate with those disposed of under the will and passing by intestacy.
[ 2008 c 6 s 908; 1994 c 221 s 5.]
Notes:
Part headings not law—Severability—2008 c 6: See RCW 26.60.900 and 26.60.901.
Effective dates—1994 c 221: See note following RCW 11.100.035.

catchline: Abatement—Generally.


title: RCW 11.10.020

text:
To the extent that a gift is to be satisfied out of a source that consists of both separate and community property, unless otherwise indicated in the will it is presumed to be a gift from separate and community property in proportion to their relative value in the property or fund from which the gift is to be satisfied.
[ 1994 c 221 s 6.]
Notes:
Effective dates—1994 c 221: See note following RCW 11.100.035.

catchline: Gift from mixed separate and community property.


title: RCW 11.10.030

text:
(1) A community debt or liability is charged against the entire community property, with the surviving spouse's or surviving domestic partner's half and the decedent spouse's or decedent domestic partner's half charged equally.
(2) A separate debt or liability is charged first against separate property, and if that is insufficient against the balance of decedent's half of community property remaining after community debts and liabilities are satisfied.
(3) A community debt or liability that is also the separate debt or liability of the decedent is charged first against the whole of the community property and then against the decedent's separate property.
(4) An expense of administration is charged against the separate property and the decedent's half of the community property in proportion to the relative value of the property, unless a different charging of expenses is shown to be appropriate under the circumstances including against the surviving spouse's or surviving domestic partner's share of the community property.
(5) Property of a similar type, community or separate, is appropriated in accordance with the abatement priorities of RCW 11.10.010.
(6) Property that is primarily chargeable for a debt or liability is exhausted, in accordance with the abatement priorities of RCW 11.10.010, before resort is had, also in accordance with RCW 11.10.010, to property that is secondarily chargeable.
[ 2008 c 6 s 931; 1994 c 221 s 7.]
Notes:
Part headings not law—Severability—2008 c 6: See RCW 26.60.900 and 26.60.901.
Effective dates—1994 c 221: See note following RCW 11.100.035.

catchline: Allocation of separate and community assets.


title: RCW 11.10.040

text:
(1) If abatement is necessary among takers of a nonprobate asset, the court shall adopt the abatement order and limitations set out in RCW 11.10.010, 11.10.020, and 11.10.030, assigning categories in accordance with subsection (2) of this section.
(2) A nonprobate transfer must be categorized for purposes of abatement, within the list of priorities set out in RCW 11.10.010(1), as follows:
(a) All nonprobate forms of transfer under which an identifiable nonprobate asset passes to a beneficiary or beneficiaries on the event of the decedent's death, such as, but not limited to, joint tenancies and payable-on-death accounts, are categorized as specific bequests.
(b) With respect to all other interests passing under nonprobate forms of transfer, each must be categorized in the manner that is most closely comparable to the nature of the transfer of that interest.
(3) If and to the extent that a nonprobate asset is subject to the same obligations as are assets disposed of under the decedent's will, the nonprobate assets abate ratably with the probate assets, within the categories set out in subsection (2) of this section.
(4) If the nonprobate instrument of transfer or the decedent's will expresses a different order of abatement, or if the decedent's overall dispositive plan or the express or implied purpose of the transfer would be defeated by the order of abatement stated in subsections (1) through (3) of this section, the nonprobate assets abate as may be found necessary to give effect to the intention of the decedent.
[ 1994 c 221 s 8.]
Notes:
Effective dates—1994 c 221: See note following RCW 11.100.035.

catchline: Nonprobate assets.


title: RCW 11.10.900

text:
This chapter applies in all instances in which no other abatement scheme is expressly provided.
[ 1994 c 221 s 4.]
Notes:
Effective dates—1994 c 221: See note following RCW 11.100.035.

catchline: Application of chapter.


title: RCW 11.100.010

text:
Any corporation, association, or person handling or investing trust funds as a fiduciary shall be governed in the handling and investment of such funds as in this chapter specified. A fiduciary who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with requirements of this chapter. The specific requirements of this chapter may be expanded, restricted, eliminated, or otherwise altered by provisions of the controlling instrument.
[ 1995 c 307 s 1; 1985 c 30 s 63. Prior: 1955 c 33 s 30.24.010; prior: 1947 c 100 s 1; Rem. Supp. 1947 s 3255-10a. Formerly RCW 30.24.010.]
Notes:
Application—1995 c 307: "This act applies prospectively only and not retroactively." [ 1995 c 307 s 7.]
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Provisions of chapter to control—Alteration by controlling instrument.


title: RCW 11.100.015

text:
In addition to other fiduciaries, a guardian of any estate is a fiduciary within the meaning of this chapter; and in addition to other trusts, a guardianship of any estate is a trust within the meaning of this chapter; and in addition to other trust funds, guardianship funds are trust funds within the meaning of this chapter.
[ 1985 c 30 s 64. Prior: 1955 c 33 s 30.24.015; prior: 1951 c 218 s 1. Formerly RCW 30.24.015.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Guardians, guardianships and funds are subject to chapter.


title: RCW 11.100.020

text:
(1) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
(2) A trustee's investment and management decisions respecting individual assets must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
(3) Among the circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries:
(a) General economic conditions;
(b) The possible effect of inflation or deflation;
(c) The expected tax consequences of investment decisions or strategies;
(d) The role that each investment or course of action plays within the overall portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;
(e) The expected total return from income and the appreciation of capital;
(f) Other resources of the beneficiaries;
(g) Needs for liquidity, regularity of income, and preservation or appreciation of capital; and
(h) An asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.
(4) A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.
(5) A trustee may invest in any kind of property or type of investment consistent with the standards of this section.
(6) A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.
[ 2015 c 115 s 18; 1995 c 307 s 2; 1985 c 30 s 65. Prior: 1984 c 149 s 97; 1955 c 33 s 30.24.020; prior: 1947 c 100 s 2; Rem. Supp. 1947 s 3255-10b. Formerly RCW 30.24.020.]
Notes:
Application—1995 c 307: See note following RCW 11.100.010.
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.
Endowment care funds to be invested in accordance with RCW 11.100.020: RCW 68.44.030.

catchline: Management of trust assets by fiduciary.


title: RCW 11.100.023

text:
Subject to the standards of RCW 11.100.020, a fiduciary is authorized to invest in new, unproven, untried, or other enterprises with a potential for significant growth whether producing a current return, either by investing directly therein or by investing as a limited partner or otherwise in one or more commingled funds which in turn invest primarily in such enterprises. The aggregate amount of investments held by a fiduciary under the authority of this section valued at cost shall not exceed ten percent of the net fair market value of the trust corpus, including investments made under the authority of this section valued at fair market value, immediately after any such investment is made. Any investment which would have been authorized by this section if in force at the time the investment was made is hereby authorized.
[ 1985 c 30 s 66. Prior: 1984 c 149 s 98.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.

catchline: Authority of fiduciary to invest in certain enterprises.


title: RCW 11.100.025

text:
Notwithstanding RCW 11.98.070(21)(a), 11.100.060, or any other statutory provisions to the contrary, with respect to trusts which require by their own terms or by operation of law that all income be paid at least annually to the spouse or domestic partner of the trust's creator, which do not provide that on the termination of the income interest that the entire then remaining trust estate be paid to the estate of the spouse or domestic partner of the trust's creator, and for which a federal estate or gift tax marital deduction is claimed, any investment in or retention of unproductive property is subject to a power in the spouse or domestic partner of the trust's creator to require either that any such asset be made productive, or that it be converted to productive assets within a reasonable period of time unless the instrument creating the interest provides otherwise.
[ 2008 c 6 s 929; 1985 c 30 s 67. Prior: 1984 c 149 s 99.]
Notes:
Part headings not law—Severability—2008 c 6: See RCW 26.60.900 and 26.60.901.
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.

catchline: Spousal or domestic partnership deduction interests.


title: RCW 11.100.030

text:
A corporation doing a trust business may invest trust funds in savings accounts with itself to the extent that deposits are insured by an agency of the federal government. Additional trust funds may be so invested by the corporation only if it first sets aside under the control of its trust department as collateral security:
(1) Direct obligations of the United States or other obligations fully guaranteed by the United States as to principal and interest; or
(2) Bonds or other obligations which constitute general obligations of any state of the United States or municipal subdivision thereof.
The securities so deposited or securities substituted therefor as collateral shall at all times be at least equal in market value to the amount of the funds so deposited.
[ 1985 c 30 s 68. Prior: 1984 c 149 s 101; 1967 c 133 s 3; 1955 c 33 s 30.24.030; prior: 1947 c 100 s 3; Rem. Supp. 1947 s 3255-10c. Formerly RCW 30.24.030.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.

catchline: Investment in savings accounts—Requirements.


title: RCW 11.100.035

text:
(1) Within the standards of judgment and care established by law, and subject to any express provisions or limitations contained in any particular trust instrument, guardians, trustees, and other fiduciaries, whether individual or corporate, are authorized to acquire and retain securities of any open-end or closed-end management type investment company or investment trust registered under the federal investment company act of 1940 as now or hereafter amended.
(2) Within the limitations of subsection (1) of this section, whenever the trust instrument directs, requires, authorizes, or permits investment in obligations of the United States government, the fiduciary may invest in and hold such obligations either directly or in the form of securities of, or other interests in, an open-end or closed-end management type investment company or investment trust registered under the federal investment company act of 1940, as now or hereafter amended, if both of the following conditions are met:
(a) The portfolio of the investment company or investment trust is limited to obligations of the United States and to repurchase agreements fully collateralized by such obligations; and
(b) The investment company or investment trust takes delivery of the collateral for any repurchase agreement either directly or through an authorized custodian.
(3) If the fiduciary is a bank or trust company, then the fact that the fiduciary, or an affiliate of the fiduciary, provides services to the investment company or investment trust such as that of an investment advisor, custodian, transfer agent, registrar, sponsor, distributor, manager, or otherwise, and is receiving reasonable compensation for those services does not preclude the bank or trust company from investing or reinvesting in the securities of the open-end or closed-end management investment company or investment trust. The fiduciary shall furnish a copy of the prospectus relating to the securities to each person to whom a regular periodic accounting would ordinarily be rendered under the trust instrument or under RCW 11.106.020, upon the request of that person. The restrictions set forth under RCW 11.100.090 may not be construed as prohibiting the fiduciary powers granted under this subsection.
[ 1995 c 307 s 3; 1994 c 221 s 68; 1989 c 97 s 1; 1985 c 30 s 69. Prior: 1955 c 33 s 30.24.035; prior: 1951 c 132 s 1. Formerly RCW 30.24.035.]
Notes:
Application—1995 c 307: See note following RCW 11.100.010.
Effective dates—1994 c 221: "(1) Except as provided in section 74 of this act, sections 1 through 72 of this act shall take effect January 1, 1995.
(2) *Section 3 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately [April 1, 1994]." [ 1994 c 221 s 75.]
*Reviser's note: "Section 3 of this act" is erroneous. This reference was apparently intended to be to section 67. The error arose in the renumbering of sections in the engrossing of amendments to Substitute House Bill No. 2270 (1994 c 221).
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Investments in securities of certain investment trusts.


title: RCW 11.100.037

text:
Funds held by a bank or trust company in a fiduciary capacity awaiting investment or distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper management of the account. These funds, including managing agency accounts, may, unless prohibited by the instrument creating the trust or by other statutes of this state, be deposited in the commercial or savings or other department of the bank or trust company, only if the bank or trust company first sets aside under control of the trust department as collateral security:
(1) Direct obligations of the United States or other obligations fully guaranteed by the United States as to principal and interest; or
(2) Bonds or other obligations which constitute general obligations of any state of the United States or municipal subdivision thereof.
The securities so deposited or securities substituted therefor as collateral shall at all times be at least equal in market value to the amount of the funds so deposited, but such security shall not be required to the extent that the funds so deposited are insured by an agency of the federal government.
[ 1985 c 30 s 70. Prior: 1984 c 149 s 104; 1967 c 133 s 4. Formerly RCW 30.24.037.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.

catchline: Investment or distribution of funds held in fiduciary capacity—Deposit in other departments authorized—Collateral security required, exception.


title: RCW 11.100.040

text:
Nothing contained in this chapter shall be construed as restricting the power of a court of proper jurisdiction to permit a fiduciary to deviate from the terms of any will, agreement, or other instrument relating to the acquisition, investment, reinvestment, exchange, retention, sale, or management of fiduciary property.
[ 1985 c 30 s 71. Prior: 1955 c 33 s 30.24.040; prior: 1947 c 100 s 4; Rem. Supp. 1947 s 3255-10d. Formerly RCW 30.24.040.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Court may permit deviation from terms of trust instrument.


title: RCW 11.100.045

text:
A fiduciary shall invest and manage the trust assets solely in the interests of the trust beneficiaries. If a trust has two or more beneficiaries, the fiduciary shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
[ 1995 c 307 s 4.]
Notes:
Application—1995 c 307: See note following RCW 11.100.010.

catchline: Fiduciary—Duty to beneficiaries.


title: RCW 11.100.047

text:
Subject to the provisions of RCW 11.100.060 and any express provisions in the trust instrument to the contrary, a fiduciary shall diversify the investments of the trust unless the fiduciary reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.
[ 1995 c 307 s 5.]
Notes:
Application—1995 c 307: See note following RCW 11.100.010.

catchline: Fiduciary—Duty to diversify.


title: RCW 11.100.050

text:
(1) The provisions of this chapter govern fiduciaries acting under wills, agreements, court orders, and other instruments effective before or after January 1, 1985.
(2) To the extent that this chapter is in conflict with RCW 11.68.090, RCW 11.68.090 prevails.
[ 2021 c 140 s 4024; 1985 c 30 s 72. Prior: 1984 c 149 s 107; 1955 c 33 s 30.24.050; prior: 1947 c 100 s 5; Rem. Supp. 1947 s 3255-10e. Formerly RCW 30.24.050.]
Notes:
Application—2021 c 140 ss 4003-4017, 4023, 4024, and 4026: See note following RCW 11.48.130.
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.

catchline: Scope of chapter—RCW 11.68.090 prevails.


title: RCW 11.100.060

text:
Subject to express provisions to the contrary in the trust instrument, any fiduciary may hold and retain any real or personal property received into or acquired by the trust from any source. Except as to trust property acquired for consideration, a fiduciary may hold and retain any such property without need for diversification as to kinds or amount and whether or not the property is income producing.
Any fiduciary may invest funds held in trust under an instrument creating the trust in any manner and in any investment or in any class of investments authorized by the instrument.
The investments described in this section are permissible even though the securities or other property are not permitted under other provisions of this chapter, and even though the securities may be securities issued by the corporation that is the fiduciary.
A fiduciary is not liable for any loss incurred with respect to any investment held under the authority of or pursuant to this section if that investment was permitted when received or when the investment was made by the fiduciary, and if the fiduciary exercises due care and prudence in the disposition or retention of any such investment.
[ 1985 c 30 s 73. Prior: 1984 c 149 s 108.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.

catchline: Fiduciary may hold and retain trust property—Investments—Liability.


title: RCW 11.100.070

text:
The terms "legal investment" or "authorized investment" or words of similar import, as used in any such instrument, shall be taken to mean any investment which is permitted by the terms of RCW 11.100.020.
[ 1985 c 30 s 74. Prior: 1984 c 149 s 110; 1955 c 33 s 30.24.070; prior: 1947 c 100 s 7; 1941 c 41 s 13; Rem. Supp. 1947 s 3255-13. Formerly RCW 30.24.070.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.

catchline: Meaning of terms in trust instrument.


title: RCW 11.100.090

text:
Unless the instrument creating the trust expressly provides to the contrary and except as authorized in RCW 11.98.078, any fiduciary in carrying out the obligations of the trust, may not buy or sell investments from or to himself, herself, or itself or any affiliated or subsidiary company or association. This section shall not be construed as prohibiting the trustee's powers under RCW 11.98.070(12).
[ 2011 c 327 s 34; 1985 c 30 s 75. Prior: 1984 c 149 s 111; 1955 c 33 s 30.24.090; prior: 1947 c 100 s 9; 1941 c 41 s 17; Rem. Supp. 1947 s 3255-17. Formerly RCW 30.24.090.]
Notes:
Application—Effective date—2011 c 327: See notes following RCW 11.103.020.
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.

catchline: Dealings with self or affiliate.


title: RCW 11.100.120

text:
Subject to the standards of RCW 11.100.020, a fiduciary is authorized to use trust funds to acquire life insurance upon the life of any beneficiary or upon the life of another in whose life such beneficiary has an insurable interest.
[ 1985 c 30 s 76. Prior: 1984 c 149 s 112; 1973 1st ex.s. c 89 s 1. Formerly RCW 30.24.120.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.
Insurable interest, guardian, trustee or other fiduciary: RCW 48.18.030(3)(c).

catchline: Use of trust funds for life insurance.


title: RCW 11.100.130

text:
Whenever power or authority to direct or control the acts of a fiduciary or the investments of a trust is conferred directly or indirectly upon any person other than the designated trustee of the trust, such person shall be deemed to be a fiduciary and shall be liable to the beneficiaries of the trust and to the designated trustee to the same extent as if he or she were a designated trustee in relation to the exercise or nonexercise of such power or authority.
[ 1995 c 307 s 6; 1985 c 30 s 77. Prior: 1973 1st ex.s. c 89 s 2. Formerly RCW 30.24.130.]
Notes:
Application—1995 c 307: See note following RCW 11.100.010.
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Person to whom power or authority to direct or control acts of fiduciary or investments of a trust is conferred deemed a fiduciary—Liability.


title: RCW 11.100.140

text:
(1) A trustee shall not enter into a significant nonroutine transaction in the absence of a compelling circumstance without:
(a) Providing the written notice called for by subsection (4) of this section; and
(b) If the significant nonroutine transaction is of the type described in subsection (2)(a) of this section, obtaining an independent appraisal, or selling in an open-market transaction.
(2) A "significant nonroutine transaction" for the purpose of this section is defined as any of the following:
(a) Any sale, option, lease, or other agreement, binding for a period of ten years or more, dealing with any interest in real estate other than real estate purchased by the trustee or a vendor's interest in a real estate contract, the value of which constitutes twenty-five percent or more of the net fair market value of trust principal at the time of the transaction; or
(b) The sale of any item or items of tangible personal property, including a sale of precious metals or investment gems other than precious metals or investment gems purchased by the trustee, the value of which constitutes twenty-five percent or more of the net fair market value of trust principal at the time of the transaction; or
(c) The sale of shares of stock in a corporation whose stock is not traded on the open market, if the stock in question constitutes more than twenty-five percent of the corporation's outstanding shares; or
(d) The sale of shares of stock in any corporation where the stock to be sold constitutes a controlling interest, or would cause the trust to no longer own a controlling interest, in the corporation.
(3) A "compelling circumstance" for the purpose of this section is defined as a condition, fact, or event that the trustee believes necessitates action without compliance with this section in order to avoid immediate and significant detriment to the trust. If faced with a compelling circumstance, the trustee shall give the notice called for in subsection (4) of this section and may thereafter enter into the significant nonroutine transaction without waiting for the expiration of the twenty-day period.
(4) The written notice required by this section shall set forth such material facts as necessary to advise properly the recipient of the notice of the nature and terms of the intended transaction. This notice shall be given to the trustor, if living, to each person who is eighteen years or older and to whom income is presently payable or for whom income is presently being accumulated for distribution as income and for whom an address is known to the trustee, and to the attorney general if the trust is a charitable trust under RCW 11.110.020. The notice shall be mailed by United States certified mail, postage prepaid, return receipt requested, to the recipient's last-known address, or may be personally served, at least twenty days prior to the trustee entering into any binding agreements.
(5) The trustor, if living, or persons entitled to notice under this section may, by written instrument, waive any requirement imposed by this section.
(6) Except as required by this section for nonroutine transactions defined in subsection (2) of this section, a trustee shall not be required to notify beneficiaries of a trust of the trustee's intended action, to obtain an independent appraisal, or to sell in an open-market transaction.
(7) Any person dealing with a trustee may rely upon the trustee's written statement that the requirements of this section have been met for a particular transaction. If a trustee gives such a statement, the transaction shall be final unless the party relying on the statement has actual knowledge that the requirements of this section have not been met.
(8) The requirements of this section, and any similar requirements imposed by prior case law, shall not apply to personal representatives or to those trusts excluded from the definition of express trusts under RCW 11.98.009.
[ 1985 c 30 s 78. Prior: 1984 c 149 s 114.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.
Severability—Effective dates—1984 c 149: See notes following RCW 11.02.005.

catchline: Notice and procedure for nonroutine transactions.


title: RCW 11.102.010

text:
Any bank or trust company qualified to act as fiduciary in this state, or in any other state if affiliated with a bank or trust company qualified to act as fiduciary in this state, may establish common trust funds for the purpose of furnishing investments to itself and its affiliated or related bank or trust company as fiduciary, or to itself and its affiliated or related bank or trust company, and others, as cofiduciaries; and may, as such fiduciary or cofiduciary, invest funds which it lawfully holds for investment in interests in such common trust funds, if such investment is not prohibited by the instrument, judgment, decree, or order creating such fiduciary relationship, and if, in the case of cofiduciaries, the bank or trust company procures the consent of its cofiduciary or cofiduciaries to such investment: PROVIDED, That any bank or trust company qualified to act as fiduciary in the state of its charter, which is not a member of the federal reserve system, shall, in the operation of such common trust fund, comply with the rules and regulations as made from time to time by the director of financial institutions in the state where chartered and in Washington the director is hereby authorized and empowered to make such rules and regulations as he or she may deem necessary and proper in the premises.
"Affiliated" as used in this section means two or more banks or trust companies:
(1) In which twenty-five percent or more of their voting shares, excluding shares owned by the United States or by any company wholly owned by the United States, are directly or indirectly owned or controlled by a holding company; or
(2) In which the election of a majority of the directors is controlled in any manner by a holding company.
[ 1994 c 92 s 1; 1985 c 30 s 79. Prior: 1979 c 105 s 1; 1955 c 33 s 30.28.010; prior: 1943 c 55 s 1; Rem. Supp. 1943 s 3388. Formerly RCW 30.28.010.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Funds authorized—Investment—Rules and regulations—"Affiliated" defined.


title: RCW 11.102.020

text:
Unless ordered by a court of competent jurisdiction the bank or trust company operating such common trust funds is not required to render a court accounting with regard to such funds; but it may, by application to the superior court, secure approval of such an accounting on such conditions as the court may establish.
[ 1985 c 30 s 80. Prior: 1955 c 33 s 30.28.020; prior: 1943 c 55 s 2; Rem. Supp. 1943 s 3388-1. Formerly RCW 30.28.020.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Accounting.


title: RCW 11.102.030

text:
This chapter shall apply to fiduciary relationships in existence on June 11, 1943, or thereafter established.
[ 1985 c 30 s 81. Prior: 1955 c 33 s 30.28.030; prior: 1943 c 55 s 7; Rem. Supp. 1943 s 3388-6. Formerly RCW 30.28.030.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Applicability of chapter.


title: RCW 11.102.040

text:
This chapter shall be so interpreted and construed to effectuate its general purpose to make uniform the laws of those states which enact it.
[ 1985 c 30 s 82. Prior: 1955 c 33 s 30.28.040; prior: 1943 c 55 s 3; Rem. Supp. 1943 s 3388-2. Formerly RCW 30.28.040.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Interpretation of chapter.


title: RCW 11.102.050

text:
This chapter may be cited as the uniform common trust fund act.
[ 1985 c 30 s 83. Prior: 1955 c 33 s 30.28.050; prior: 1943 c 55 s 4; Rem. Supp. 1943 s 3388-3. Formerly RCW 30.28.050.]
Notes:
Short title—Application—Purpose—Severability—1985 c 30: See RCW 11.02.900 through 11.02.903.

catchline: Short title.


title: RCW 11.103.020

text:
The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.
[ 2011 c 327 s 35.]
Notes:
Application—2011 c 327: "Except as otherwise provided in this act:
(1) This act applies to all trusts created before, on, or after January 1, 2012;
(2) This act applies to all judicial proceedings concerning trusts commenced on or after January 1, 2012;
(3) Any rule of construction or presumption provided in this act applies to trust instruments executed before January 1, 2012, unless there is a clear indication of a contrary intent in the terms of the trust;
(4) An action taken before January 1, 2012, is not affected by this act; and
(5) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before January 1, 2012, that statute continues to apply to the right even if it has been repealed or superseded." [ 2011 c 327 s 40.]
Effective date—2011 c 327: "This act takes effect January 1, 2012." [ 2011 c 327 s 41.]

catchline: Trustor capacity.


title: RCW 11.103.030

text:
(1) Unless the terms of a trust expressly provide that the trust is revocable, the trustor may not revoke or amend the trust.
(2) If a revocable trust is created or funded by more than one trustor and unless the trust agreement provides otherwise:
(a) To the extent the trust consists of community property, the trust may be revoked by either spouse or either domestic partner acting alone but may be amended only by joint action of both spouses or both domestic partners;
(b) To the extent the trust consists of property other than community property, each trustor may revoke or amend the trust with regard to the portion of the trust property attributable to that trustor's contribution;
(c) The character of community property or separate property is unaffected by its transfer to and from a revocable trust; and
(d) Upon the revocation or amendment of the trust by fewer than all of the trustors, the trustee must promptly notify the other trustors of the revocation or amendment.
(3) The trustor may revoke or amend a revocable trust:
(a) By substantial compliance with a method provided in the terms of the trust; or
(b)(i) If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by:
(A) A later will or codicil that expressly refers to the trust or specifically devises property that would otherwise have passed according to the terms of the trust; or
(B) A written instrument signed by the trustor evidencing intent to revoke or amend.
(ii) The requirements of chapter 11.11 RCW do not apply to revocation or amendment of a revocable trust under (b)(i) of this subsection.
(4) Upon revocation of a revocable trust, the trustee must deliver the trust property as the trustor directs.
(5) A trustor's powers with respect to the revocation or amendment of a trust or distribution of the property of a trust may be exercised by the trustor's agent under a power of attorney only to the extent specified in the power of attorney document, as provided in RCW 11.125.240 and to the extent consistent with or expressly authorized by the trust agreement.
(6) A conservator of the trustor may exercise a trustor's powers with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the guardianship pursuant to chapter 11.130 RCW.
(7) A trustee who does not know that a trust has been revoked or amended is not liable to the trustor or trustor's successors in interest for distributions made and other actions taken on the assumption that the trust had not been amended or revoked.
(8) This section does not limit or affect operation of RCW 11.96A.220 through 11.96A.240.
[ 2020 c 312 s 719; 2016 c 209 s 404; 2013 c 272 s 24; 2011 c 327 s 36.]
Notes:
Effective dates—2020 c 312: See note following RCW 11.130.915.
Short title—Application—Uniformity—Federal law application—Federal electronic signatures in global and national commerce act—Application—Dates—Effective date—2016 c 209: See RCW 11.125.010 and 11.125.900 through 11.125.903.
Application—2013 c 272: See note following RCW 11.98.002.
Application—Effective date—2011 c 327: See notes following RCW 11.103.020.

catchline: Revocation or amendment.


title: RCW 11.103.040

text:
While the trustor of a revocable trust is living, the rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the trustor. If a revocable trust has more than one trustor, the duties of the trustee are owed to all of the living trustors having the right to revoke the trust.
[ 2013 c 272 s 19; 2011 c 327 s 37.]
Notes:
Application—2013 c 272: See note following RCW 11.98.002.
Application—Effective date—2011 c 327: See notes following RCW 11.103.020.

catchline: Trustor's powers—Powers of withdrawal.


title: RCW 11.103.050

text:
(1) A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the trustor's death within the earlier of:
(a) Twenty-four months after the trustor's death; or
(b) Four months after the trustee sent to the person by personal service, mail, or in an electronic transmission if there is a consent of the recipient to electronic transmission then in effect under the terms of RCW 11.96A.110, a notice including:
(i) The name and date of the trust;
(ii) The identity of the trustor or trustors;
(iii) The trustee's name, address, and telephone number; and
(iv) Notice of the time allowed for commencing a proceeding.
(2) Upon the death of the trustor of a trust that was revocable at the trustor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust, unless:
(a) The trustee knows of a pending judicial proceeding contesting the validity of the trust; or
(b) A potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within sixty days after the contestant sent the notification.
(3) A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received.
[ 2013 c 272 s 20; 2011 c 327 s 38.]
Notes:
Application—2013 c 272: See note following RCW 11.98.002.
Application—Effective date—2011 c 327: See notes following RCW 11.103.020.

catchline: Limitation on action contesting validity of revocable trust—Distribution of trust property.


title: RCW 11.104B.001

text:
This chapter may be known and cited as the uniform fiduciary income and principal act.
[ 2021 c 140 s 2101.]


title: RCW 11.104B.005

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Accounting period" means a calendar year, unless a fiduciary selects another period of 12 calendar months or approximately 12 calendar months. The term includes a part of a calendar year or another period of 12 calendar months or approximately 12 calendar months which begins when an income interest begins or ends when an income interest ends.
(2) "Asset-backed security" means a security that is serviced primarily by the cash flows of a discrete pool of fixed or revolving receivables or other financial assets that by their terms convert into cash within a finite time. The term includes rights or other assets that ensure the servicing or timely distribution of proceeds to the holder of the asset-backed security. The term does not include an asset to which RCW 11.104B.200, 11.104B.280, or 11.104B.330 applies.
(3) "Beneficiary" includes:
(a) For a trust:
(i) A current beneficiary, including a current income beneficiary and a beneficiary that may receive only principal;
(ii) A remainder beneficiary; and
(iii) Any other successor beneficiary; and
(b) For an estate, an heir, legatee, and devisee.
(4) "Court" means the court in this state having jurisdiction relating to a trust or estate.
(5) "Current income beneficiary" means a beneficiary to which a fiduciary may distribute net income, whether or not the fiduciary also may distribute principal to the beneficiary.
(6) "Distribution" means a payment or transfer by a fiduciary to a beneficiary in the beneficiary's capacity as a beneficiary, made under the terms of the trust, without consideration other than the beneficiary's right to receive the payment or transfer under the terms of the trust. "Distribute," "distributed," and "distributee" have corresponding meanings.
(7) "Estate" means a decedent's estate. The term includes the property of the decedent as the estate is originally constituted and the property of the estate as it exists at any time during administration.
(8) "Fiduciary" includes a trustee, personal representative, and person acting under a delegation from a fiduciary. The term includes a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal. If there are two or more cofiduciaries, the term includes all cofiduciaries acting under the terms of the trust and applicable law.
(9) "Income" means money or other property a fiduciary receives as current return from principal. The term includes a part of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Article 4 of this chapter.
(10) "Income interest" means the right of a current income beneficiary to receive all or part of net income, whether the terms of the trust require the net income to be distributed or authorize the net income to be distributed in the fiduciary's discretion. The term includes the right of a current beneficiary to use property held by a fiduciary.
(11) "Independent person" means a person that is not:
(a) For a trust:
(i) A beneficiary that is a distributee or permissible distributee of trust income or principal or would be a distributee or permissible distributee of trust income or principal if either the trust or the interests of the distributees or permissible distributees of trust income or principal were terminated, assuming no power of appointment is exercised;
(ii) A settlor of the trust; or
(iii) An individual whose legal obligation to support a beneficiary may be satisfied by a distribution from the trust;
(b) For an estate, a beneficiary;
(c) A spouse, parent, brother, sister, or issue of an individual described in (a) or (b) of this subsection;
(d) A corporation, partnership, limited liability company, or other entity in which persons described in (a) through (c) of this subsection, in the aggregate, have voting control; or
(e) An employee of a person described in (a), (b), (c), or (d) of this subsection.
(12) "Mandatory income interest" means the right of a current income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute.
(13) "Net income" means the total allocations during an accounting period to income under the terms of a trust and this chapter minus the disbursements during the period, other than distributions, allocated to income under the terms of the trust and this chapter. To the extent the trust is a unitrust under Article 3 of this chapter, the term means the unitrust amount determined under Article 3 of this chapter. The term includes an adjustment from principal to income under RCW 11.104B.070. The term does not include an adjustment from income to principal under RCW 11.104B.070.
(14) "Person" means an individual, estate, trust, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity.
(15) "Personal representative" means an executor, administrator, successor personal representative, special administrator, or person that performs substantially the same function with respect to an estate under the law governing the person's status.
(16) "Principal" means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary.
(17) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(18) "Settlor" means a person, including a testator, that creates or contributes property to a trust. If more than one person creates or contributes property to a trust, the term includes each person, to the extent of the trust property attributable to that person's contribution, except to the extent another person has the power to revoke or withdraw that portion.
(19) "Special tax benefit" means:
(a) Exclusion of a transfer to a trust from gifts described in 26 U.S.C. Sec. 2503(b) of the federal internal revenue code of 1986, as amended, as of January 1, 2022, because of the qualification of an income interest in the trust as a present interest in property;
(b) Status as a qualified subchapter S trust described in 26 U.S.C. Sec. 1361(d)(3) of the federal internal revenue code of 1986, as amended, as of January 1, 2022, at a time the trust holds stock of an S corporation described in 26 U.S.C. Sec. 1361(a)(1) of the federal internal revenue code of 1986, as amended, as of January 1, 2022;
(c) An estate or gift tax marital deduction for a transfer to a trust under 26 U.S.C. Sec. 2056 or 2523 of the federal internal revenue code of 1986, as amended, as of January 1, 2022, which depends or depended in whole or in part on the right of the settlor's spouse to receive the net income of the trust;
(d) Exemption in whole or in part of a trust from the federal generation-skipping transfer tax imposed by 26 U.S.C. Sec. 2601 of the federal internal revenue code of 1986, as amended, as of January 1, 2022, because the trust was irrevocable on September 25, 1985, if there is any possibility that:
(i) A taxable distribution, as defined in 26 U.S.C. Sec. 2612(b) of the federal internal revenue code of 1986, as amended, as of January 1, 2022, could be made from the trust; or
(ii) A taxable termination, as defined in 26 U.S.C. Sec. 2612(a) of the federal internal revenue code of 1986, as amended, as of January 1, 2022, could occur with respect to the trust; or
(e) An inclusion ratio, as defined in 26 U.S.C. Sec. 2642(a) of the federal internal revenue code of 1986, as amended, as of January 1, 2022, of the trust which is less than one, if there is any possibility that:
(i) A taxable distribution, as defined in 26 U.S.C. Sec. 2612(b) of the federal internal revenue code of 1986, as amended, as of January 1, 2022, could be made from the trust; or
(ii) A taxable termination, as defined in 26 U.S.C. Sec. 2612(a) of the federal internal revenue code of 1986, as amended, as of January 1, 2022, could occur with respect to the trust.
(20) "Successive interest" means the interest of a successor beneficiary.
(21) "Successor beneficiary" means a person entitled to receive income or principal or to use property when an income interest or other current interest ends.
(22) "Terms of a trust" means:
(a) Except as otherwise provided in (b) of this subsection, the manifestation of the settlor's intent regarding a trust's provisions as:
(i) Expressed in the trust instrument; or
(ii) Established by other evidence that would be admissible in a judicial proceeding;
(b) The trust's provisions as established, determined, or amended by:
(i) A trustee or trust director in accordance with applicable law;
(ii) Court order; or
(iii) A nonjudicial settlement agreement under *chapter 11.98A RCW; or
(c) For an estate, a will.
(23) "Trust":
(a) Includes:
(i) An express trust, private or charitable, with additions to the trust, wherever and however created; and
(ii) A trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust; and
(b) Does not include:
(i) A constructive trust;
(ii) A resulting trust, conservatorship, guardianship, multiparty account, custodial arrangement for a minor, business trust, voting trust, security arrangement, liquidation trust, or trust for the primary purpose of paying debts, dividends, interest, salaries, wages, profits, pensions, retirement benefits, or employee benefits of any kind; or
(iii) An arrangement under which a person is a nominee, escrowee, or agent for another.
(24) "Trustee" means a person, other than a personal representative, that owns or holds property for the benefit of a beneficiary. The term includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court.
(25) "Will" means any testamentary instrument recognized by applicable law which makes a legally effective disposition of an individual's property, effective at the individual's death. The term includes a codicil or other amendment to a testamentary instrument.
[ 2021 c 140 s 2102.]
Notes:
*Reviser's note: Chapter 11.98A RCW was repealed in its entirety by 2020 c 303 s 19.

catchline: Definitions.


title: RCW 11.104B.010

text:
Except as otherwise provided in the terms of a trust or this chapter, this chapter applies to a trust or estate.
[ 2021 c 140 s 2103.]

catchline: Scope.


title: RCW 11.104B.020

text:
(1) Except as otherwise provided in the terms of a trust or this chapter, this chapter applies when this state is the principal place of administration of a trust or estate, subject to the following rules:
(a) If the trust was created before January 1, 2022, this chapter applies only to a decision or action occurring on or after January 1, 2022; and
(b) If the principal place of administration of the trust is changed to this state on or after January 1, 2022, this chapter applies only to a decision or action occurring on or after the date of the change.
(2) Without precluding other means to establish a sufficient connection with the designated jurisdiction in a directed trust, terms of the trust which designate the principal place of administration of the trust are valid and controlling if:
(a) A trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction;
(b) A trust director's principal place of business is located in or a trust director is a resident of the designated jurisdiction; or
(c) All or part of the administration occurs in the designated jurisdiction.
(3) By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration of a trust to this state, the trustee submits to the application of this chapter to any matter within the scope of this chapter involving the trust.
[ 2021 c 140 s 2104.]

catchline: Governing law.


title: RCW 11.104B.050

text:
(1) In making an allocation or determination or exercising discretion under this chapter, a fiduciary shall:
(a) Act in good faith, based on what is fair and reasonable to all beneficiaries;
(b) Administer a trust or estate impartially, except to the extent the terms of the trust manifest an intent that the fiduciary shall or may favor one or more beneficiaries;
(c) Administer the trust or estate in accordance with the terms of the trust, even if there is a different provision in this chapter; and
(d) Administer the trust or estate in accordance with this chapter, except to the extent the terms of the trust provide otherwise or authorize the fiduciary to determine otherwise.
(2) A fiduciary's allocation, determination, or exercise of discretion under this chapter is presumed to be fair and reasonable to all beneficiaries. A fiduciary may exercise a discretionary power of administration given to the fiduciary by the terms of the trust, and an exercise of the power which produces a result different from a result required or permitted by this chapter does not create an inference that the fiduciary abused the fiduciary's discretion.
(3) A fiduciary shall:
(a) Add a receipt to principal, to the extent neither the terms of the trust nor this chapter allocates the receipt between income and principal; and
(b) Charge a disbursement to principal, to the extent neither the terms of the trust nor this chapter allocates the disbursement between income and principal.
(4) A fiduciary may exercise the power to adjust under RCW 11.104B.070, convert an income trust to a unitrust under RCW 11.104B.120(1)(a), change the percentage or method used to calculate a unitrust amount under RCW 11.104B.120(1)(b), or convert a unitrust to an income trust under RCW 11.104B.120(1)(c), if the fiduciary determines the exercise of the power is necessary to administer the trust or estate in accordance with the requirements of subsection (1) of this section.
(5) Factors the fiduciary must consider in making the determination under subsection (4) of this section include:
(a) The terms of the trust;
(b) The nature, distribution standards, and expected duration of the trust;
(c) The effect of the allocation rules, including specific adjustments between income and principal, under Articles 4 through 7 of this chapter;
(d) The desirability of liquidity and regularity of income;
(e) The desirability of the preservation and appreciation of principal;
(f) The extent to which an asset is used or may be used by a beneficiary;
(g) The increase or decrease in the value of principal assets, reasonably determined by the fiduciary;
(h) Whether and to what extent the terms of the trust give the fiduciary power to accumulate income or invade principal or prohibit the fiduciary from accumulating income or invading principal;
(i) The extent to which the fiduciary has accumulated income or invaded principal in preceding accounting periods;
(j) The effect of current and reasonably expected economic conditions; and
(k) The reasonably expected tax consequences of the exercise of the power.
[ 2021 c 140 s 2201.]

catchline: Fiduciary duties—General principles.


title: RCW 11.104B.060

text:
(1) In this section, "fiduciary decision" means:
(a) A fiduciary's allocation between income and principal or other determination regarding income and principal required or authorized by the terms of the trust or this chapter;
(b) The fiduciary's exercise or nonexercise of a discretionary power regarding income and principal granted by the terms of the trust or this chapter, including the power to adjust under RCW 11.104B.070, convert an income trust to a unitrust under RCW 11.104B.120(1)(a), change the percentage or method used to calculate a unitrust amount under RCW 11.104B.120(1)(b), or convert a unitrust to an income trust under RCW 11.104B.120(1)(c); or
(c) The fiduciary's implementation of a decision described in (a) or (b) of this subsection.
(2) The court may not order a fiduciary to change a fiduciary decision unless the court determines that the fiduciary decision was an abuse of the fiduciary's discretion.
(3) If the court determines that a fiduciary decision was an abuse of the fiduciary's discretion, the court may order a remedy authorized by law. To place the beneficiaries in the positions the beneficiaries would have occupied if there had not been an abuse of the fiduciary's discretion, the court may order:
(a) The fiduciary to exercise or refrain from exercising the power to adjust under RCW 11.104B.070;
(b) The fiduciary to exercise or refrain from exercising the power to convert an income trust to a unitrust under RCW 11.104B.120(1)(a), change the percentage or method used to calculate a unitrust amount under RCW 11.104B.120(1)(b), or convert a unitrust to an income trust under RCW 11.104B.120(1)(c);
(c) The fiduciary to distribute an amount to a beneficiary;
(d) A beneficiary to return some or all of a distribution; or
(e) The fiduciary to withhold an amount from one or more future distributions to a beneficiary.
(4) On petition by a fiduciary for instruction, the court may determine whether a proposed fiduciary decision will result in an abuse of the fiduciary's discretion. If the petition describes the proposed decision, contains sufficient information to inform the beneficiary of the reasons for making the proposed decision and the facts on which the fiduciary relies, and explains how the beneficiary will be affected by the proposed decision, a beneficiary that opposes the proposed decision has the burden to establish that it will result in an abuse of the fiduciary's discretion.
[ 2021 c 140 s 2202.]

catchline: Fiduciary duties—Judicial review of exercise of discretionary power—Request for instruction.


title: RCW 11.104B.070

text:
(1) Except as otherwise provided in the terms of a trust or this section, a fiduciary, in a record, without court approval, may adjust between income and principal if the fiduciary determines the exercise of the power to adjust is necessary to administer the trust or estate in accordance with the requirements of RCW 11.104B.050(1).
(2) This section does not create a duty to exercise or consider the power to adjust under subsection (1) of this section or to inform a beneficiary about the applicability of this section.
(3) A fiduciary that in good faith exercises or fails to exercise the power to adjust under subsection (1) of this section is not liable to a person affected by the exercise or failure to exercise.
(4) In deciding whether and to what extent to exercise the power to adjust under subsection (1) of this section, a fiduciary shall consider all factors the fiduciary considers relevant, including relevant factors in RCW 11.104B.050(5) and the application of RCW 11.104B.200(9), 11.104B.270, or 11.104B.320.
(5) A fiduciary may not exercise the power under subsection (1) of this section to make an adjustment or under RCW 11.104B.270 to make a determination that an allocation is insubstantial if:
(a) The adjustment or determination would reduce the amount payable to a current income beneficiary from a trust that qualifies for a special tax benefit, except to the extent the adjustment is made to provide for a reasonable apportionment of the total return of the trust between the current income beneficiary and successor beneficiaries;
(b) The adjustment or determination would change the amount payable to a beneficiary, as a fixed annuity or a fixed fraction of the value of the trust assets, under the terms of the trust;
(c) The adjustment or determination would reduce an amount that is permanently set aside for a charitable purpose under the terms of the trust, unless both income and principal are set aside for the charitable purpose;
(d) Possessing or exercising the power would cause a person to be treated as the owner of all or part of the trust for federal income tax purposes;
(e) Possessing or exercising the power would cause all or part of the value of the trust assets to be included in the gross estate of an individual for federal estate tax purposes;
(f) Possessing or exercising the power would cause an individual to be treated as making a gift for federal gift tax purposes;
(g) The fiduciary is not an independent person;
(h) The trust is irrevocable and provides for income to be paid to the settlor and possessing or exercising the power would cause the adjusted principal or income to be considered an available resource or available income under a public benefit program; or
(i) The trust is a unitrust under Article 3 of this chapter.
(6) If subsection (5)(d), (e), (f), or (g) of this section applies to a fiduciary:
(a) A cofiduciary to which subsection (5)(d) through (g) of this section does not apply may exercise the power to adjust, unless the exercise of the power by the remaining cofiduciary or cofiduciaries is not permitted by the terms of the trust or law other than this chapter; or
(b) If there is no cofiduciary to which subsection (5)(d) through (g) of this section does not apply, the fiduciary may appoint a cofiduciary to which subsection (5)(d) through (g) of this section does not apply, which may be a special fiduciary with limited powers, and the appointed cofiduciary may exercise the power to adjust under subsection (1) of this section, unless the appointment of a cofiduciary or the exercise of the power by a cofiduciary is not permitted by the terms of the trust or law other than this chapter.
(7) A fiduciary may release or delegate to a cofiduciary the power to adjust under subsection (1) of this section if the fiduciary determines that the fiduciary's possession or exercise of the power will or may:
(a) Cause a result described in subsection (5)(a) through (f) or (h) of this section; or
(b) Deprive the trust of a tax benefit or impose a tax burden not described in subsection (5)(a) through (f) of this section.
(8) A fiduciary's release or delegation to a cofiduciary under subsection (7) of this section of the power to adjust under subsection (1) of this section:
(a) Must be in a record;
(b) Applies to the entire power, unless the release or delegation provides a limitation, which may be a limitation to the power to adjust:
(i) From income to principal;
(ii) From principal to income;
(iii) For specified property; or
(iv) In specified circumstances;
(c) For a delegation, may be modified by a redelegation under this subsection by the cofiduciary to which the delegation is made; and
(d) Subject to (c) of this subsection (8), is permanent, unless the release or delegation provides a specified period, including a period measured by the life of an individual or the lives of more than one individual.
(9) Terms of a trust which deny or limit the power to adjust between income and principal do not affect the application of this section, unless the terms of the trust expressly deny or limit the power to adjust under subsection (1) of this section.
(10) The exercise of the power to adjust under subsection (1) of this section in any accounting period may apply to the current period, the immediately preceding period, and one or more subsequent periods.
(11) A description of the exercise of the power to adjust under subsection (1) of this section must be:
(a) Included in a report, if any, sent to all beneficiaries; or
(b) Communicated at least annually to all beneficiaries that receive or are entitled to receive income from the trust or would be entitled to receive a distribution of principal if the trust were terminated at the time the notice is sent, assuming no power of appointment is exercised.
[ 2021 c 140 s 2203.]

catchline: Fiduciary duties—Power to adjust.


title: RCW 11.104B.100

text:
The definitions in this section apply throughout this article unless the context clearly requires otherwise.
(1) "Applicable value" means the amount of the net fair market value of a trust taken into account under RCW 11.104B.160.
(2) "Express unitrust" means a trust for which, under the terms of the trust without regard to this article, income or net income must or may be calculated as a unitrust amount.
(3) "Income trust" means a trust that is not a unitrust.
(4) "Net fair market value of a trust" means the fair market value of the assets of the trust, less the noncontingent liabilities of the trust.
(5) "Unitrust" means a trust for which net income is a unitrust amount. The term includes an express unitrust.
(6) "Unitrust amount" means an amount computed by multiplying a determined value of a trust by a determined percentage. For a unitrust administered under a unitrust policy, the term means the applicable value, multiplied by the unitrust rate.
(7) "Unitrust policy" means a policy described in RCW 11.104B.140 through 11.104B.180 and adopted under RCW 11.104B.120.
(8) "Unitrust rate" means the rate used to compute the unitrust amount under subsection (6) of this section for a unitrust administered under a unitrust policy.
[ 2021 c 140 s 2301.]

catchline: Unitrusts—Definitions.