DelawareHB 297153rd General Assembly (2024–2026)House

AN ACT TO AMEND TITLES 12 AND 25 OF THE DELAWARE CODE RELATING TO DECEDENTS’ ESTATES AND PROPERTY.

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Bill Overview

Analyzed Economic Effects

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

Beneficiaries gain ways to fill trust vacancies

Successor rules cover trustees, advisers, designated representatives, enforcers, and people with powers to remove or appoint trust decision-makers. The rules address vacancies after death, incapacity, removal, resignation, or refusal to serve when no usable appointment method remains. Unless the trust document says otherwise, appointment-power holders required to appoint are treated as declining after 60 days without appointment following notice. For trusts ready to distribute, the receiving beneficiaries can unanimously name a successor without court approval. Otherwise, current permissible beneficiaries and presumptive remainder beneficiaries can appoint unanimously, subject to the document’s requirements for the appointee. Authorized designated or virtual representatives can give consent. Vacancies need filling only when law or the document requires it; trust modification and nonjudicial settlement routes remain available.

Trust mergers preserve beneficiaries’ financial interests

Trustees can create new trusts and merge all or part of existing trusts, including into statutory or foreign statutory trusts. The trusts need not share a creator, and the receiving trust need not be funded before the merger. Trustees can choose either trust’s document to govern the merged trust, but cannot materially change beneficiaries’ principal or income interests. Creditors’ rights, liens, debts, liabilities, and duties carry over; transferring all property into another trust counts as a merger. The merger-effects rule alone neither grants merger authority nor validates earlier documents.

Trust appointment powers gain tax-related flexibility

A power of appointment lets its holder choose who receives property. The law allows an opt-out from § 504(a) for trusts outside the generation-skipping transfer tax or with a zero inclusion ratio. The document exercising the power must expressly name § 501(a) and say it applies to that exercise. This option excludes powers created by exercising another appointment power. The law took effect on enactment, and all these trust-law changes apply to trusts created at any time.

Trust-funded services come with payment rules

Trustees must provide beneficiary well-being programs and pay their costs from trust assets, subject to their duties. The trust document controls timing and manner; otherwise, the trustee or adviser decides, with adviser direction or consent where applicable. Trustees can provide services or hire outside providers, including affiliates, but payments to trustees, advisers, or affiliates require express authorization. Provider payment rights and full trustee or adviser pay without reductions for program costs require express authorization; authorized payments need no advance notice or disclosure. Program costs count as administrative expenses where allowed and can leave less trust money for other distributions.

Trust decision-makers share powers and responsibility

Two trust decision-makers generally must act together; three or more act by majority, unless the trust document says otherwise. Two can assign routine tasks to one; a majority of three or more can assign them to one or more. A person who delivers a written dissent to the majority avoids liability for that action. This protection does not excuse failures to participate, try to prevent a breach, or seek court advice in recurring situations. Those duties remain unless the trust document or other Delaware law expressly provides otherwise.

Sponsors & Cosponsors

Sponsor

William Bush
Democratic • House

Cosponsors

William J. Carson
Democratic • House
Gerald W. Hocker
Republican • Senate
Spiros Mantzavinos
Democratic • Senate
David P. Sokola
Democratic • Senate
Bryan Townsend
Democratic • Senate
John "Jack" Walsh
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 57 • No: 0

Senate vote • 6/9/2026

Passed (SM required)

Yes: 20 • No: 0

House vote • 3/24/2026