Understanding Trusts in Washington
Trusts are among the most flexible tools in estate planning, yet they are also among the most misunderstood. Some people assume trusts are only for the very wealthy. In practice, Washington families use trusts to avoid probate, provide for children, protect loved ones with disabilities, care for pets, and manage property across generations. This guide explains how trusts work and the types you are most likely to encounter. For help deciding whether a trust belongs in your plan, a Seattle trust lawyer at Latterell Law can walk you through your options.
How a Trust Works
A trust is a legal arrangement with three roles:
- The grantor (also called the settlor or trustor) creates the trust and transfers property into it.
- The trustee holds legal title to the trust property and manages it according to the trust’s written terms.
- The beneficiaries receive the benefit of the trust property, either now or in the future.
In many living trusts, one person fills all three roles at first: you create the trust, serve as trustee, and benefit from the property during your lifetime. A successor trustee you name takes over when you die or become incapacitated, managing or distributing the property without court involvement. Washington trusts are governed largely by the state’s trust statutes in Chapter 11.98 RCW.
A critical point many people miss: a trust only controls property that is actually transferred into it. Signing a trust document without retitling your home, accounts, and other assets into the trust, a step called funding, leaves those assets outside the trust’s protection.
Revocable vs. Irrevocable Trusts
Revocable living trusts can be amended or canceled at any time while you are alive and competent. You keep full control of the property. The main benefits are probate avoidance, privacy, and seamless incapacity management. Because you retain control, however, a revocable trust does not shield assets from your creditors or reduce estate taxes on its own. Our Seattle living trust lawyer page explains how these trusts are built and funded.
Irrevocable trusts generally cannot be changed once created. In exchange for giving up control, you can gain benefits a revocable trust cannot offer: protection from creditors, removal of assets from your taxable estate, and eligibility planning for long-term care benefits. Irrevocable trusts require careful drafting because the terms are difficult to undo. See our Seattle irrevocable trust lawyer page for how we use them.
Common Trust Types in Washington
- Revocable living trusts serve as the centerpiece of many probate-avoidance plans.
- Testamentary trusts are created inside a will and take effect at death, often to manage inheritances for minor children.
- Special needs trusts provide for a loved one with a disability without disqualifying them from government benefits. Learn more from our Seattle special needs trust lawyer page.
- Educational trusts set aside funds specifically for a child’s or grandchild’s education.
- Pet trusts name a caretaker and dedicate funds for the care of your animals, an arrangement Washington law specifically authorizes.
- Charitable trusts benefit the causes you care about while offering potential tax advantages.
- Real estate and specialty trusts, including trusts designed to hold firearms regulated under the National Firearms Act, address property that requires particular handling.
Do You Still Need a Will If You Have a Trust?
Yes. Even a fully funded living trust is paired with a pour-over will, which catches any assets left outside the trust and directs them into it, and which is the only document that can nominate a guardian for minor children. Our wills guide explains what a will does that a trust cannot.
What Happens After the Grantor Dies?
When the grantor of a living trust dies, the successor trustee steps in to pay debts and expenses, handle any tax filings, and distribute property to the beneficiaries under the trust’s terms. This process, called trust administration, happens outside of probate court but still involves real legal duties. Trustees who need guidance can learn more on our Seattle trust administration lawyer page.
Talk to a Washington Trust Attorney
Latterell Law founder Angel M. Latterell has more than 20 years of experience designing customized trusts for Washington families, from straightforward living trusts to special needs, educational, pet, and real estate trusts. We will help you choose the right structure, draft it properly, and fund it so it actually works when your family needs it. Contact Latterell Law today to schedule a consultation.
