What is the perpetuity period?
The perpetuity period is an important concept in inheritance law in Washington, as it defines the amount of time certain assets may be held by an heir before they must be dispersed to other heirs. The Washington Uniform Transfers to Minors Act (WUTMA) determine the maximum period of time that an asset may be held in trust in the state. This period of time is referred to as the “perpetuity period.” The perpetuity period for WUTMA is currently set at twenty-one years after the death of the settlor (the person who created the trust). This means that assets held in trust must be distributed to the specified beneficiaries within twenty-one years of the settlor’s death, or else the assets will be subject to Washington’s rules of intestate succession. In addition to the above, the Washington Trust Code also states that certain assets held for purposes of education, healthcare, or support of an individual may be held in trust for longer than twenty-one years, as long as the trust is administered in a prudent manner. An example would be a trust established to pay for a minor’s college tuition. Aside from the perpetuity period, Washington inheritance laws also regulate the distribution of assets, which must be done in accordance with the settlor’s wishes. Beneficiaries may be entitled to receive property outright or they may receive access to a trust fund. A trustee is appointed to manage the trust and must adhere to the laws governing the trust’s administration.
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