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.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Trust officers gain more resignation options

Trust parties can use a consent-based trust change to let a trustee or another officeholder resign while the trust creator lives. An out-of-court settlement can also allow resignation when the trust document addresses neither resignation nor successor appointments. These options reduce the need to ask a court to approve a resignation.

Trust beneficiaries cannot force discretionary payments

A beneficiary’s discretionary trust interest is an expected benefit, not a property right. Beneficiaries cannot force payments, even when the trust lists standards or triggers for them. They can still sue over alleged abuse of discretion under the existing court review standard. The law took effect upon enactment and applies to trusts whenever created.

Spousal trust gifts stay outside marital property

When one spouse makes a gift in trust for the other, the receiving spouse’s interest is not marital property. The trust document can set a different rule. This protects the receiving spouse’s interest from marital-property treatment but excludes it from the couple’s marital assets.

Purpose trusts gain enforcement with participation limits

Trusts for noncharitable purposes are valid without identifiable beneficiaries; receiving their money alone does not make someone a beneficiary. The trust document can name an enforcer or another person to enforce its terms, or Delaware’s Court of Chancery can appoint one. The document can give that person the sole right to enforce the trust. Without identifiable beneficiaries, an enforcer can participate in out-of-court settlements and consent changes without needing a beneficiary. Each serving enforcer must consent or have legal standing, as applicable, for those procedures. When the trust ends, remaining property follows the trust document or, if it gives no directions, Delaware’s default distribution rules.

Purpose-trust enforcers face clearer legal duties

A purpose-trust enforcer has fiduciary duties when using trust authority unless the trust document says otherwise. Delaware’s definitions include enforcers acting as fiduciaries and recognize those not acting as fiduciaries as nonfiduciaries. Accepting appointment subjects an enforcer to Delaware courts’ authority for trust-related matters. For one part of Delaware trust law, the trustee definition includes enforcers, designated representatives, and fiduciaries who exercise or guide trust powers.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

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

Passed (SM required)

Yes: 37 • No: 0

Actions Timeline

  1. Signed by Governor

    8/21/2025Governor
  2. Passed By Senate. Votes: 20 YES 1 ABSENT

    5/20/2025Senate
  3. Reported Out of Committee (Banking, Business, Insurance & Technology) in Senate with 5 Favorable

    5/14/2025Senate
  4. Assigned to Banking, Business, Insurance & Technology Committee in Senate

    4/17/2025Senate
  5. Passed By House. Votes: 37 YES 4 ABSENT

    4/17/2025House
  6. Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 8 On Its Merits

    4/8/2025House
  7. Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

    3/27/2025House

Bill Text

  • Current

    3/27/2025

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