We wondered if you knew anything about electing age 25 on a UTMA custodial account in Washington State? I have a client that may be interested in doing this. They pointed out the Washington state code and the warning given. If a client elected age 25 would they lose their ability to give future $14,000/yr gifts? What are your thoughts?

Thank you,

Scott Baukol

This was the paragraph I was talking about from RCW 11.114.090:

(Electing the following paragraph is optional to the transferor):

I elect to extend the custodianship to the minor’s twenty-fifth birthday. I UNDERSTAND THAT ELECTING TO EXTEND CUSTODIANSHIP TO AGE TWENTY-FIVE MAY CAUSE ME TO LOSE MY ANNUAL EXCLUSION FROM FEDERAL GIFT TAX AND THAT I SHOULD CONSULT WITH AN ATTORNEY OR TAX ADVISOR BEFORE MAKING THIS ELECTION.