On July 10, 2015, Senate Bill 42 was signed into law by Governor Jack Markell. The legislation codified existing law regarding the permissibility of the terms of a governing instrument to vary the right of a beneficiary to be informed of his or her interest in a trust for a period of time. The new legislation provides a non-exclusive list of circumstances that would be deemed to constitute a “period of time” under Section 3303(c) of Title 12. In addition, a new Section 3303(d) provides that a “designated representative” (as subsequently defined in Section 3339) can bind a beneficiary during a period of confidentiality as to both judicial proceedings and nonjudicial matters.
The Bill also adds a new section to Title 12 of the Delaware Code, Section 3339, which (i) includes a definition of a “designated representative,” (ii) clarifies the fact that the terms of a trust instrument may authorize certain persons to designate or appoint one or more designated representatives, (iii) provides that a person who is appointed as a designated representative will serve only upon his or her acceptance of the position, and (iv) provides a presumption that a designated representative will act in a fiduciary capacity.
To email or print this Legislative Update please click on the following link: Trust Industry Briefing re Legislative Update – An Act to Amend Title 12 of the Delaware Code re Fiduciary Relations