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• Introduced by Sen. Adam Kline, (D-Seattle) (D) on January 15, 2009, amends RCW 11.104A, known as the “principal and income act of 2002”to specify the manner in which trustees determine and distribute interest income payments to beneficiaries of a trust. Defines and clarifies different types of, and allocation of interest and principal in various types of trust accounts.
  • Referred to the Senate Judiciary Committee on January 15, 2009.
    • Substitute offered in the Senate on January 29, 2009, to clarify that to determine the internal income of a separate fund with a known value, the trustee must multiply the value by 3 percent. The substitute passed in the Senate by voice vote on January 29, 2009.
    • Referred to the Senate Rules Committee on January 29, 2009.
• Passed in the Senate (45 to 0) on February 27, 2009. [Vote Details and Comments]
• Received in the House on March 2, 2009.
  • Referred to the House Judiciary Committee on March 2, 2009.
    • Amendment offered in the House on March 16, 2009, to require a trustee to calculate the 4% allocation made to income using the most recent statement of value preceding the beginning of the accounting period, in cases where no part of a payment is characterized as interest, a dividend, or an equivalent. Removes the section changing the provisions related to income taxes on receipts from business entities and changes the formula used to calculate the internal income of a separate fund from 3% to 4% of the fund's value, in cases where the trustee cannot determine the internal income of a separate fund but can determine the value of the separate fund. The amendment passed in the House by voice vote on March 16, 2009.
  • Referred to the House Rules Committee on March 18, 2009.
• Passed in the House (94 to 2) on April 6, 2009. [Vote Details and Comments]
• Signed by Gov. Christine Gregoire on May 6, 2009, amends RCW 11.104A, known as the “principal and income act of 2002” to specify the manner in which trustees determine and distribute interest income payments to beneficiaries of a trust. Defines and clarifies different types of, and allocation of interest and principal in various types of trust accounts. House amendment provides for specific instructions on the 4% calculation made to income.