Chapter 13.2 TEDRA Agreements

• Jurisdiction: Washington

§13.2 TEDRA AGREEMENTS

This section discusses nonjudicial binding agreements under TEDRA.

(1) Application

The underlying intent of TEDRA is to provide procedures to allow parties to resolve their disputes as efficiently and cost effectively as possible, without unnecessary and expensive court proceedings. When all interested parties to a matter are in agreement regarding the resolution of a matter, they can enter into a nonjudicial binding agreement without seeking an order from the court. RCW 11.96A.220.

A nonjudicial binding agreement (also referred to as a "TEDRA agreement") may be used to resolve any matter to which TEDRA applies. "Matter" is broadly defined under TEDRA to include any issue or dispute involving wills, trusts, estates, and nonprobate assets. RCW 11.96A.030(1). See also §13.1, above, concerning "parties" and "matter."

TEDRAs nonjudicial binding agreement provisions do not apply to matters involving (1) the appointment, qualification, and removal of guardians, Ch. 11.88 RCW; (2) the powers and duties of guardians or limited guardians, Ch. 11.92 RCW; or (3) any trust for a minor created at its inception by a judgment or decree, unless the judgment or decree specifically provides that RCW 11.96A.210 -.250 apply. RCW 11.96A.220. Guardians and guardians ad litem are court-appointed fiduciaries subject to judicial oversight. RCW 11.96A.160.

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Practice Tip: Although RCW 11.96A.220 prohibits the use of nonjudicial binding agreements in matters involving guardians and guardians ad litem, nonetheless court-appointed fiduciaries who are within the prohibition contained in RCW 11.96A.220 have, with court approval, been permitted to execute agreements regarding disputed matters arising in guardianships and court-supervised trusts.

Alert In the 2019 legislative session, the Washington legislature passed the Uniform Guardianship, Conservatorship, and Other Protective Arrangements Act (Uniform Guardianship Act), 2SSB 5604, and on May 21, 2019, Governor Inslee signed the bill into law. See Laws of 2019, ch. 437. The Uniform Guardianship Act, which becomes effective January 1, 2021, repeals many provisions of Chapters 11.88, 11.92, and 26.10 RCW and will add a new chapter to Title 11 RCW. The impact on the relationship between TEDRA and guardianship, specifically with regard to RCW 11.96A.220, remains to be seen.

(2) Parties

If all interested parties agree to resolve a matter related to a trust or an estate, the matter can be settled by a written agreement signed by all interested parties, and such agreement is then binding and conclusive on all persons interested in the estate or trust. "Persons interested in the estate or trust" include all persons beneficially interested in the estate or trust, meaning one who has a direct, immediate, and legally ascertained pecuniary interest in the trust or estate. In re Estate of Becker, 177 Wn.2d 242, 247, 298 P.3d 720 (2013). To be valid and binding, a TEDRA agreement must be signed by all interested parties. The definition of "party" or "parties" under TEDRA is extremely broad and includes any persons who have an interest in the subject of the particular proceeding and whose name and address are known to, or are reasonably ascertainable by, the petitioner. RCW 11.96A.030;. Estate of Becker, 177 Wn.2d at 247. See also §13.1(4), above, and §13.3(1)(a), below.

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(a) Virtual representation

TEDRA codified the common-law doctrine of virtual representation. RCW 11.96A.120. If a person who virtually represents another party in a matter signs a TEDRA agreement, that virtual representative's signature constitutes the signature of all the parties he or she virtually represents, and all parties virtually represented are bound by the agreement. RCW 11.96A.220.

RCW 11.96A.120 was modified in 2013 to include additional options for the virtual representation of another party, allowing for more flexibility when providing notice to or obtaining consent from parties in trust and estate matters. TEDRA expressly adopts the common-law concept of virtual representation and then supplements it by describing the circumstances under which unascertainable parties will be deemed to have received notice and be bound by the...