A judgment creditor of a Washington mortgage broker tries to garnish the broker trust account in 2026. May an ordinary judgment creditor garnish properly maintained borrower trust funds for the broker’s debt?
Correct Answer
C) Barred: trust moneys are exempt from execution and garnishment
Moneys maintained in the trust account are exempt from execution, attachment or garnishment, and the account is designated and maintained for the benefit of borrowers. Other choices: the account name does not defeat the exemption; broker funds should not be in the account at all, since commingling is prohibited; and identifying the borrowers is not a condition of the exemption. Source: RCW 19.146.050(1)
Why This Is the Correct Answer
Moneys maintained in the trust account are exempt from execution, attachment or garnishment, and the account is designated and maintained for the benefit of borrowers. Other choices: the account name does not defeat the exemption; broker funds should not be in the account at all, since commingling is prohibited; and identifying the borrowers is not a condition of the exemption. Source: RCW 19.146.050(1)
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