Readers in the Seattle area will be interested to hear of recent changes to the law regarding the rights of trust beneficiaries and the duties of trustees. The changes are meant to clarify several specific matters. The new law specifies what information must be given by a trustee to a beneficiary, determines when exactly a statute of limitations starts and increases the statutory duties of trustees.

According to the new law, a notice to interested parties is required for all irrevocable trusts created in Washington after Dec. 31, 2011. A notice is also required for all revocable trusts that become irrevocable after that date. The trustee must now give specific information regarding the trust to the persons with interest in it, and must do so within 60 days of accepting a trustee position for an irrevocable trust or within 60 days of finding out that a previously revocable trust has become irrevocable.

Additionally, the law requires trustees to provide beneficiaries with certain information so that the beneficiaries can protect their interests. By law, a trustee must now respond promptly to a reasonable request for information by a beneficiary. Within 60 days of the request, the trustee must provide information regarding a beneficiary's rights regarding a trust if the beneficiary asks for such information. To this end, a trustee can deliver the full trust document to the beneficiary.

A new statute of limitations provision also affects the way beneficiaries are to be kept reasonably informed. Prior to the new law, the statute of limitations period wasn't clearly defined. Now the statute of limitations has been clearly determined as three years. The period starts on the date the trustee sends the beneficiary certain information pertaining to the trust -- the same information that must be given under the new provision for reasonable notice about a trust. When a trustee satisfies his or her obligation to keep a beneficiary reasonably informed, that is when the statute of limitations commences.

Trustees in the Seattle area will want to find out how, if at all, their duties have changed under the new provisions. The new law could result in changes to the way existing trusts must be administered, even if the trusts have been ongoing for a long period of time. In any case, Washington residents will likely benefit from a thorough review of their estate planning documents.

Source: mondaq.com, "United States: Changes To Washington Trust Laws Impact Trustees and Beneficiaries," Colonel F. Betz, Janis A. Cunningham and Anthony J. McCormick, Jan. 20, 2012