DelawareHB 103153rd General Assembly (2024–2026)House

AN ACT TO AMEND TITLE 12 AND TITLE 13 OF THE DELAWARE CODE RELATING TO DECEDENTS’ ESTATES AND FIDUCIARY RELATIONS.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Easier resignation for trust officeholders

If a trust is silent on resigning but has a way to pick a successor, an officeholder can resign with 30 days’ written notice to the beneficiaries, the people who pick the successor, and other officeholders. The law also defines who counts as an officeholder, including trustees, advisers, designated representatives, and enforcers. This gives a clear path to step down without going to court.

Gifts in trust stay separate property

If one spouse gives property into a trust and the other spouse is a beneficiary, that property is treated as the donor spouse’s trust property. It is not marital property unless the trust agreement clearly says otherwise. This sets a clear rule for dividing property in a divorce.

Protections for discretionary trust beneficiaries

The law treats a discretionary trust interest as an expectancy, not a property right. A beneficiary cannot force a payout when distributions are left to a trustee’s discretion. Creditors also cannot make the trustee pay them from a discretionary interest unless the trust itself grants that right. This strengthens asset protection for people named in discretionary trusts.

Modern rules for purpose trust enforcers

A noncharitable purpose trust can name an enforcer, or the Court of Chancery can appoint one if needed. People with a specific interest in the trust’s purpose can ask the court to appoint or remove an enforcer. An enforcer serves as a fiduciary unless the trust says otherwise, and accepts Delaware court jurisdiction by taking the role. For trusts with no clear beneficiaries, enforcers count as interested persons for nonjudicial settlements and must give written consent or nonobjection for changes.

Who counts as fiduciary or trustee

The law clarifies who has fiduciary duties and who does not. Trustees, personal representatives, guardians, UTMA custodians, and certain advisers, agents, designated representatives, and enforcers are fiduciaries when acting in a fiduciary role. When those people are not acting in a fiduciary role, they are nonfiduciaries. The law also widens who counts as a trustee to include people who direct, consent to, or must be consulted on trust powers, plus designated representatives and enforcers.

Sponsors & Cosponsors

Sponsor

William Bush
Democratic • House

Cosponsors

Spiros Mantzavinos
Democratic • Senate
Brian Pettyjohn
Republican • Senate
David L. Wilson
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 57 • No: 0

Senate vote • 5/20/2025

Passed (SM required)

Yes: 20 • No: 0

House vote • 4/17/2025