Washington takes a hybrid approach to trust law. The state has not adopted the Uniform Trust Code, but it has built a detailed set of trust statutes spread across several chapters of the Revised Code of Washington. Washington stands out for its comprehensive nonjudicial dispute resolution system (TEDRA), mandatory trustee accounting requirements, a 150-year vesting period for trusts, and no state income tax. Trust law in Washington is found primarily in RCW 11.98 (Trust Act), RCW 11.100 (Investment), RCW 11.96A (TEDRA), and RCW 11.106 (Trustees' Accounting Act).
This guide applies to both revocable and irrevocable trusts in Washington.
Where Washington trust law lives
Washington's trust provisions are distributed across multiple chapters of the RCW rather than consolidated in a single code. RCW 11.98 contains the main trust act covering trustee duties, powers, and beneficiary rights. RCW 11.106 is a separate Trustees' Accounting Act that establishes annual reporting requirements. RCW 11.96A contains TEDRA, Washington's unique framework for resolving trust disputes outside of court. And RCW 11.98B covers the Uniform Directed Trust Act.
Accounting and notice requirements
Washington has a two-layer reporting system. Under RCW 11.98.072, the trustee has a general ongoing duty to keep "qualified beneficiaries" reasonably informed about the trust and to respond promptly to requests for information. For irrevocable trusts created after December 31, 2011 (or revocable trusts that became irrevocable after that date), the trustee must provide written notice within 60 days of accepting the position. This notice must include the trust's existence, the trust creator's identity, the trustee's name, address, and phone number, and the beneficiary's right to request information (RCW 11.98.072(2)(a)).
On top of that, the separate Trustees' Accounting Act (RCW 11.106.020) requires annual statements to each adult income beneficiary, covering receipts and disbursements. This mandatory annual accounting exists regardless of what the trust instrument says about reporting.
The trust creator can waive or modify the specific notification requirements in subsections (2) and (3) of RCW 11.98.072. But the general duty in subsection (1) to keep beneficiaries reasonably informed cannot be waived. This means Washington trustees always have a baseline obligation to share information when asked, even if specific notice requirements have been modified.
Washington includes an interesting spousal exemption: if the trust creator's spouse is the only person currently eligible to receive distributions, and all other qualified beneficiaries are descendants of the trust creator and spouse, then the trustee does not need to send notice to anyone other than the spouse (RCW 11.98.072(3)).
While the trust creator is alive and the trust is revocable, no beneficiary other than the trust creator is entitled to information (RCW 11.98.072(4)).
The statute of limitations for trust claims is three years after the trustee provides an adequate report. If the trustee never provides a report, the three-year period runs from the trustee's removal, resignation, death, or the trust's termination (RCW 11.96A.070).
Trustee duties
Washington trustees must administer the trust "solely in the interests of the beneficiaries" (RCW 11.98.078(1)). Self-dealing transactions are voidable, and the trustee bears a presumption of conflict in any transaction involving trust property and the trustee's personal interests. Trustees must act impartially, giving due regard to each beneficiary's respective interests (RCW 11.98.078(8)). Investment duties follow Washington's prudent investor provisions (RCW 11.100).
Compensation follows the trust instrument first, with a "reasonable" standard applying if the instrument is silent. If the trustee receives compensation from multiple roles (dual compensation), this must be disclosed to beneficiaries annually (RCW 11.98.078(4) and (5)).
What makes Washington different
TEDRA: Comprehensive nonjudicial dispute resolution. Washington's Trust and Estate Dispute Resolution Act (RCW 11.96A) is one of the most developed systems in the country for resolving trust disputes without going to court. TEDRA allows mediation, arbitration, and binding agreements among interested parties. This can save families significant time and legal fees when disagreements arise about trust interpretation, trustee conduct, or distribution decisions.
No state income tax. Washington does not impose a state income tax on individuals or trusts. Trust income accumulated in a Washington trust is not taxed at the state level. (Washington does have a separate capital gains tax on certain high-value transactions, which is worth discussing with a tax advisor.)
150-year vesting period. Under RCW 11.98.130, trusts in Washington can last up to 150 years. While this is not perpetual like some other trust-friendly states, it allows for multi-generational planning that covers several generations.
Separate Trustees' Accounting Act. Unlike most states that fold accounting requirements into their main trust code, Washington maintains a standalone accounting statute (RCW 11.106). This creates a clear, independent requirement for annual reporting to income beneficiaries that exists alongside the general trust act.
Directed trust framework. Washington adopted the Uniform Directed Trust Act (RCW 11.98B), allowing trust responsibilities to be divided among different advisors and the trustee. The trustee who follows a trust director's instructions is generally protected from liability for those decisions.
TrustHelm tip: Washington's dual-layer reporting system, with requirements in both the Trust Act and the separate Trustees' Accounting Act, can be confusing to track. TrustHelm's duty tracking and reminder features can help trustees stay on top of their annual accounting obligations and keep a record of all reports sent to beneficiaries.
The most common Washington trust mistakes
Not funding the trust. As with every state, the most common mistake is failing to transfer assets into the trust. A Washington trust only controls property that has been properly retitled in the trust's name.
Confusing the two reporting requirements. Washington's general trust act (RCW 11.98.072) and the Trustees' Accounting Act (RCW 11.106) are separate statutes with different requirements. Trustees need to comply with both.
Overlooking the grandfathering date. The 60-day initial notice requirement only applies to irrevocable trusts created after December 31, 2011. Older trusts operate under different rules, and trustees should understand which set of requirements applies to their trust.
Not using TEDRA when disputes arise. Washington's nonjudicial dispute resolution system is a powerful tool, but families sometimes jump straight to litigation. TEDRA proceedings are generally faster, less expensive, and less adversarial than court proceedings.
Forgetting Washington's estate tax. While Washington has no income tax, it does have a state estate tax with an exemption significantly lower than the federal exemption. This affects trust planning for Washington residents.
When to talk to an attorney
You should consult a Washington trust attorney if you are navigating a trust dispute and considering TEDRA proceedings, if you need to understand how the dual reporting requirements apply to your trust, if you are dealing with Washington's state estate tax in your trust planning, or if you are a trustee trying to determine which notification rules apply to your specific trust.
If you need help finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney tool.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.