S-2974.1 _______________________________________________
SENATE BILL 6198
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State of Washington 52nd Legislature 1992 Regular Session
By Senators Moore, Johnson, A. Smith, von Reichbauer, Niemi and Snyder
Read first time 01/21/92. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to trustee's duties of disclosure; amending RCW 11.106.020 and 11.97.010; and adding a new section to chapter 11.106 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 11.106.020 and 1985 c 30 s 96 are each amended to read as follows:
The trustee or trustees appointed by any will, deed, or agreement executed shall mail or deliver at least annually to each adult income trust beneficiary a written itemized statement of all current receipts and disbursements made by the trustee of the funds of the trust both principal and income, and a notice informing the beneficiary of the beneficiary's right to receive a copy of the trust instrument. Upon the request of any such beneficiary the trustee shall furnish the beneficiary an itemized statement of all property then held by that trustee, and may also file any such statement in the superior court of the county in which the trustee or one of the trustees resides.
NEW SECTION. Sec. 2. A new section is added to chapter 11.106 RCW to read as follows:
(1) The trustee or trustees, including institutional trustees, appointed by any will, deed, or agreement shall, within ninety days of the event that makes the trust effective, notify each beneficiary, including minor beneficiaries, in writing of the entire contents, terms, and conditions of the trust. Notification shall also include, in the case of institutional trustees, the name, business address, and phone number of an individual employee of the institution's trust department who may be contacted by a beneficiary who has questions regarding the trust.
(2) Subsequent to the original notification, all beneficiaries shall thereafter be notified annually, as part of the disclosure required by RCW 11.106.020, of their right to receive a copy of the trust instrument, and of the fact that the trust instrument may contain important information affecting the beneficiary's financial interests. Annual notice shall include a caveat that, if the beneficiary is a minor or legally incompetent person, legal planning, financial planning, or other appropriate professional advice should be timely sought to protect the beneficiary's interests.
Sec. 3. RCW 11.97.010 and 1985 c 30 s 38 are each amended to read as follows:
The trustor of a trust may by the provisions of the trust relieve the trustee from any or all of the duties, restrictions, and liabilities which would otherwise be imposed by chapters 11.95, 11.98, 11.100, and 11.104 RCW and RCW 11.106.020, or may alter or deny any or all of the privileges and powers conferred by those provisions; or may add duties, restrictions, liabilities, privileges, or powers to those imposed or granted by those provisions. The trustor may not, however, relieve a trustee that is a financial institution from the duties to notify beneficiaries under RCW 11.106.020 and section 2 of this act. If any specific provision of those chapters is in conflict with the provisions of a trust, the provisions of the trust control whether or not specific reference is made in the trust to any of those chapters. In no event may a trustee be relieved of the duty to act in good faith and with honest judgment.