Washington trusts are governed by a body of law that is recognizably Washington’s own. Washington never adopted the Uniform Trust Code as a package. Instead, it relies on the Washington Trust Act, chapter 11.98 RCW, together with a separate revocable trust chapter, a decanting statute, a charitable trusts act, and the Trust and Estate Dispute Resolution Act (TEDRA), which gives Washington one of the most flexible systems in the country for resolving trust questions without going to court. Anyone creating, serving on, or inheriting from a Washington trust benefits from understanding how these pieces fit.
This page is the Washington trusts hub for Holmes Law. It surveys the trust statutes, the types of trusts Washington families use, the duties Washington imposes on trustees, notice and contest deadlines, how trusts can be modified or decanted, spendthrift protection, the 150-year perpetuities period, and how Washington trusts are taxed. For a decision on a specific trust, follow the links to the dedicated pages on WA revocable trusts, WA irrevocable trusts, WA special needs trusts, and WA charitable trusts. For the overall plan, see the Washington estate planning page.
The Statutes That Govern Washington Trusts
Washington trust law is spread across several chapters of Title 11 RCW:
- Chapter 11.98 RCW, the Washington Trust Act: creation of trusts, trustee powers and duties, notice to beneficiaries, trustee resignation and removal, and the rule against perpetuities.
- Chapter 11.103 RCW: rules specific to revocable trusts, including capacity, revocation and amendment, and the limitation period for contesting a revocable trust after the settlor’s death.
- Chapter 11.96A RCW, TEDRA: procedures for resolving any matter involving a trust or estate, including binding nonjudicial agreements and virtual representation.
- Chapter 11.100 RCW: Washington’s prudent investor standard for trustees.
- Chapter 11.106 RCW: trustee accountings and statements to beneficiaries.
- Chapter 11.107 RCW: the trust decanting statute.
- Chapter 11.110 RCW: the charitable trusts act, which supervises trustees of charitable trusts.
Washington is also a community property state. Community property transferred to a revocable trust typically retains its character, and the trust document should say so, both to protect each spouse’s rights and to preserve the full basis adjustment available for community property at the first death under IRC § 1014(b)(6).
Types of Trusts Washington Families Use
Revocable living trusts
The settlor keeps full control and can amend or revoke the trust during life. At death it becomes irrevocable and is administered privately by a successor trustee. A funded revocable trust avoids probate for the assets it holds, manages property during incapacity, and is often the vehicle for Washington estate tax planning. See the WA revocable trust page for details.
Testamentary trusts
A testamentary trust is created by a will and takes effect after probate. It is commonly used for minor children in will-based plans, as explained on the WA traditional wills page.
Irrevocable trusts
Irrevocable trusts include irrevocable life insurance trusts, spousal lifetime access trusts, long-term dynasty trusts, and trusts used in Medicaid planning. They generally cannot be changed by the settlor alone, although Washington’s TEDRA and decanting statutes allow meaningful flexibility.
Special needs and supplemental needs trusts
These trusts hold assets for a person with a disability without disqualifying the beneficiary from SSI or Washington Apple Health. They are covered in depth on the WA special needs trusts page.
Charitable trusts
Charitable remainder and charitable lead trusts combine philanthropy with income, estate, and capital gains planning, subject to Washington’s charitable trusts act.
Trustee Duties Under Washington Law
A Washington trustee is a fiduciary. The core duties are statutory, supplemented by case law and by the trust instrument.
Duty of loyalty and good faith
Under RCW 11.98.078, a trustee must administer the trust solely in the interests of the beneficiaries. Self-dealing transactions are generally voidable unless authorized by the trust, approved by the court, or consented to by the beneficiaries after full disclosure. The trustee must also act in good faith and with honest judgment.
Prudent investing
Chapter 11.100 RCW requires a trustee to invest as a prudent investor would, considering the purposes, terms, distribution requirements, and circumstances of the trust, and diversifying investments unless there is a good reason not to. A trust instrument can expand or restrict these rules.
Duty to inform and report
Washington requires trustees to keep beneficiaries informed. Under RCW 11.98.072, within sixty days after accepting the trusteeship, or after a revocable trust becomes irrevocable, the trustee must notify qualified beneficiaries of the trust’s existence, the identity of the settlor, the trustee’s name and contact information, and the beneficiary’s right to request information. Under chapter 11.106 RCW, a trustee generally must provide an annual statement of receipts and disbursements to adult income beneficiaries, and beneficiaries can request more.
Impartiality and administration
A trustee must treat current and remainder beneficiaries impartially, keep trust property separate and properly identified, keep adequate records, and incur only reasonable costs. Trustees are entitled to reasonable compensation unless the instrument provides otherwise.
Notice and Contest Deadlines
Washington has short, specific deadlines that every beneficiary should know.
Contesting a revocable trust after death
Under RCW 11.103.050, a proceeding to contest the validity of a trust that was revocable at the settlor’s death must be commenced within the earlier of twenty-four months after the settlor’s death or four months after the trustee sends the person a notice containing the name and date of the trust, the settlor’s identity, the trustee’s name, address, and telephone number, and the time allowed to bring a contest. After the settlor’s death, the trustee may distribute trust property unless the trustee knows of a pending contest, or a potential contestant has notified the trustee of a possible contest and files within sixty days of that notification. A beneficiary who received a distribution from a trust later found invalid must return it.
Claims against a trustee
TEDRA’s limitation provisions in RCW 11.96A.070 generally bar claims for breach of trust three years after a beneficiary receives a report that adequately discloses the facts giving rise to the claim. Beneficiaries who receive trustee reports should read them promptly and get advice if something looks wrong.
Creditor claims against a trust
A trustee of a trust that was revocable at death can publish and serve a notice to creditors under chapter 11.42 RCW, which provides a claims procedure similar to probate and can cut off late creditor claims. Many Washington trustees use it for the same reason personal representatives do: finality.
Modifying a Washington Trust
Washington offers several routes to change a trust that is no longer working.
- Revocation or amendment by the settlor: a revocable trust may be amended or revoked by the method the trust provides, or, if the trust does not make its method exclusive, by other methods permitted under chapter 11.103 RCW.
- Binding nonjudicial agreements: under RCW 11.96A.220, the trustee and all interested parties can resolve a matter, including modification of administrative or dispositive terms, by a written agreement. It can be filed with the court and becomes equivalent to a court order. Minor, unborn, and unascertained beneficiaries can be represented through virtual representation under RCW 11.96A.120 or by a special representative under RCW 11.96A.250.
- Judicial proceedings: when agreement is not possible, TEDRA gives the superior court plenary power to modify, reform, or terminate a trust in appropriate circumstances.
- Trust protectors and powers of appointment: a well-drafted trust can grant a trust protector or a beneficiary a limited power to adjust terms without any proceeding.
Decanting Under Chapter 11.107 RCW
Decanting lets a trustee with discretionary distribution power pour the assets of one trust into a new trust with different terms. Washington’s decanting statute, chapter 11.107 RCW, sets out when a trustee may decant, the notice that must be given to beneficiaries, and specific prohibitions, such as restrictions on reducing a fixed income interest or defeating a charitable interest or tax benefit. The scope of the power depends on how much discretion the trustee holds: a trustee with expanded discretion has broader authority than a trustee limited to an ascertainable standard. Decanting is commonly used to update administrative provisions, change the governing law or situs, convert a trust into a supplemental needs trust for a beneficiary who has become disabled, or extend a trust’s term within the perpetuities period.
Spendthrift Protection and Self-Settled Trusts
Washington respects spendthrift provisions in trusts created for others. RCW 6.32.250 recognizes that a trust created by someone other than the debtor, with a valid restraint on alienation, is protected from the beneficiary’s creditors, subject to exceptions such as certain support obligations. A third-party trust for a child or grandchild can therefore protect an inheritance from creditors and from a beneficiary’s own poor decisions.
Washington does not permit self-settled asset protection trusts. Under RCW 19.36.020, a transfer in trust for the use of the person making it is void as against that person’s existing or subsequent creditors. A Washington resident who wants self-settled asset protection must look to another state’s law, and even then Washington courts may apply Washington public policy. The WA irrevocable trusts page discusses this in more detail.
Washington’s 150-Year Perpetuities Period
The traditional rule against perpetuities limited how long a trust could last. Washington modified it in RCW 11.98.130 to allow interests in a trust to vest up to 150 years after the trust’s creation. This makes Washington a moderately favorable jurisdiction for long-term dynasty trusts. The period is long enough for multiple generations, but it is not unlimited as in some states. Trusts that could run longer should be drafted with a savings clause that terminates the trust before the period ends.
How Washington Trusts Are Taxed
Income tax
Washington does not impose a personal income tax, so ordinary trust income is not taxed by the state. At the federal level, a revocable trust is a grantor trust whose income is reported by the settlor. A nongrantor irrevocable trust is a separate taxpayer and reaches the highest federal income tax bracket at a far lower level of income than an individual, which is why distributions and grantor trust status are important planning tools.
Capital gains excise tax
Washington does impose a capital gains excise tax on certain long-term capital gains under chapter 82.87 RCW. Gains from a grantor trust are generally attributed to the grantor. Whether and how a nongrantor trust is affected depends on the trust’s structure and the Department of Revenue’s rules, so trustees selling appreciated stock or business interests should review the question before a sale. Real estate is generally excluded from this tax.
Estate tax
Washington’s estate tax applies at a threshold far below the federal estate tax, which reaches only a small fraction of estates. For deaths from July 1, 2026 through December 31, 2026, the exclusion is $3,000,000, with indexing scheduled to begin in 2027. Washington has no portability between spouses, so married couples commonly use credit shelter or disclaimer trusts, and RCW 83.100.047 permits a Washington-only QTIP election. Assets in a revocable trust are included in the settlor’s Washington gross estate; properly structured irrevocable trusts can remove assets from it.
Choosing and Changing a Washington Trustee
The trustee’s identity matters as much as the trust’s terms. A family member costs less and knows the beneficiaries, but may lack time, investment knowledge, or neutrality. A professional trustee, such as a trust company or a private professional fiduciary, brings experience and continuity at a cost. Many Washington trusts use a combination, for example a family member as co-trustee with a corporate trustee handling investments and accounting.
A nonresident may serve as trustee of a Washington trust, and the trust can specify which state’s law governs its administration. If a trustee needs to resign, is unable to serve, or is not performing, the trust instrument usually sets out the procedure. Where it does not, beneficiaries and the trustee can agree on a successor under RCW 11.96A.220, or a court can appoint or remove a trustee under TEDRA.
When a trustee deals with banks, brokers, or title companies, the trustee does not have to hand over the full trust. Under RCW 11.98.075, a trustee may provide a certification of trust confirming the trust’s existence, the trustee’s identity and powers, and other key facts, and a person who relies on it in good faith is protected. This keeps the dispositive terms private.
Frequently Asked Questions
Has Washington adopted the Uniform Trust Code?
No. Washington has its own Trust Act in chapter 11.98 RCW, supplemented by TEDRA and other chapters. Many provisions resemble the Uniform Trust Code, but the numbering and some rules differ, so out-of-state forms should not be assumed to work.
How long does a beneficiary have to contest a Washington living trust?
The earlier of twenty-four months after the settlor’s death or four months after the trustee sends the statutory notice under RCW 11.103.050.
Can Washington trustees change a trust without going to court?
Often, yes. A binding nonjudicial agreement under RCW 11.96A.220, or decanting under chapter 11.107 RCW, may accomplish the change without litigation.
How long can a Washington trust last?
Under RCW 11.98.130, interests may vest up to 150 years after the trust is created.
Can I protect my own assets with a Washington trust?
Not through a self-settled trust. RCW 19.36.020 makes transfers in trust for your own benefit void as against your creditors. Trusts for others can include enforceable spendthrift provisions.
Do Washington trusts pay state income tax?
Washington has no personal income tax, but its capital gains excise tax and estate tax may apply, depending on the trust’s structure and assets.
Speak With a Washington Trust Attorney
Whether you are creating a new trust, serving as trustee, or trying to fix an older trust under TEDRA or the decanting statute, Michael Holmes can help you understand how Washington law applies. Holmes Law serves Washington clients remotely. Contact Holmes Law about a Washington trust, or return to the Washington estate planning page.