DE HB412 | 2013-2014 | 147th General Assembly
Status
Completed Legislative Action
Spectrum: Partisan Bill (Democrat 4-0)
Status: Passed on July 22 2014 - 100% progression
Action: 2014-07-22 - Signed by Governor
Text: Latest bill text (Draft #1) [HTML]
Spectrum: Partisan Bill (Democrat 4-0)
Status: Passed on July 22 2014 - 100% progression
Action: 2014-07-22 - Signed by Governor
Text: Latest bill text (Draft #1) [HTML]
Summary
Section 1 of the Act moves the definition of “good faith”, applicable throughout Title 12, from Section 3580 to Section 101 of Title 12. Sections 2 and 3 of the Act is intended to (i) reorganize and clarify section 3303 but not substantively alter the current statute; and (ii) eliminate the requirement in section 3322 that a fiduciary appointing an agent pursuant to the statute may only do so when the fiduciary reasonably believes the appointment would improve investment performance or administrative efficiency but retain the requirement that the fiduciary must reasonably believe the appointment is in the best interest of all interested persons. Section 4 of the Act is intended to (i) clarify but not substantively alter the provisions of sections 3521 through 3523, as amended in January, 2014, by reorganizing the substantive provisions of those sections as new sections 3521 through 3526; (ii) revise section 3528 to clarify that an appointment in further trust made pursuant to that section may be made to a further trust for the benefit of an open class of beneficiaries even if the class remains open beyond the time when the class would have closed pursuant to the terms of the governing instrument for the initial trust, as might happen, for example, if the initial trust were of limited duration and the further trust were of unlimited duration; (iii) revise section 3536 to clarify existing law regarding when a trust is considered self-settled for purposes of determining creditor rights and broaden the statutory protection from creditor claims afforded to trustors to include all trusts in which the trustor holds an interest that is contingent upon surviving the trustor’s spouse; (iv) revise section 3544 to take into account recently enacted section 3338 permitting the appointment of successor trustees in certain circumstances; and (v) revise section 3580 to clarify that the various provisions of subchapter VII of Chapter 35 of Title 12 making reference to trustees shall be deemed to refer also to fiduciaries and nonfiduciaries, such as direction advisers described in section 3313 of Title 12, not technically designated as trustees but nevertheless performing, or directing others in the performance of, some or all of the duties customarily performed by trustees. Section 5 of the Act is intended to revise Chapter 5 of Title 25 to (i) employ uniform terminology to describe general and nongeneral powers of appointment; (ii) revise section 505 to (1) make the language of current section 505, regarding the exercise of powers of appointment in favor of trusts, applicable to nongeneral powers; (2) create a new rule for general powers exercisable in favor of the powerholder or the powerholder’s estate patterned upon 19.13(a) of the Restatement of Property (Third) Wills and Other Donative Transfers (the “Restatement”); and (3) create a new rule for general powers exercisable only in favor of the powerholder’s creditors or the creditors of the powerholder’s estate patterned upon 19.13(b) of the Restatement; and (iii) allow powerholders, having a nongeneral power of appointment over property of a trust exempt from generation-skipping transfer tax, the option of exercising the power in a manner designed to trigger estate inclusion under 2041(a)(3) of the Internal Revenue Code. Section 6 of the Act provides for the effective date of the Act.
Title
An Act To Amend Titles 12 And 25 Of The Delaware Code Relating To Fiduciary Relations And Property.
Sponsors
Roll Calls
2014-07-01 - Senate - Senate Third Reading (Y: 13 N: 8 NV: 0 Abs: 0) [PASS]
2014-07-01 - Senate - Senate Third Reading (Y: 21 N: 0 NV: 0 Abs: 0) [PASS]
2014-06-26 - House - House Third Reading (Y: 40 N: 0 NV: 0 Abs: 1) [PASS]
2014-07-01 - Senate - Senate Third Reading (Y: 21 N: 0 NV: 0 Abs: 0) [PASS]
2014-06-26 - House - House Third Reading (Y: 40 N: 0 NV: 0 Abs: 1) [PASS]
History
| Date | Chamber | Action |
|---|---|---|
| 2014-07-22 | House | Signed by Governor |
| 2014-07-01 | Senate | Passed by Senate. Votes: Passed 21 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT |
| 2014-07-01 | Senate | Necessary rules are suspended in Senate |
| 2014-06-26 | House | Passed by House of Representatives. Votes: Passed 40 YES 0 NO 0 NOT VOTING 1 ABSENT 0 VACANT |
| 2014-06-18 | House | Reported Out of Committee (ECONOMIC DEVELOPMENT/BANKING/INSURANCE/COMMERCE) in House with 6 On Its Merits |
| 2014-06-17 | House | Introduced and Assigned to Economic Development/Banking/Insurance/Commerce Committee in House |
