The Delaware Trust Act 2024 introduces groundbreaking changes to estate planning and wealth management, enabling families to establish trusts that include “well-being” and education programs for beneficiaries. This new law allows trusts to fund programs like seminars, coaching, retreats, and financial literacy training, preparing beneficiaries for inheritance while fostering family values, governance, and mental well-being.
Key highlights of the law include:
Beneficiary Well-Being Programs: Trustees can fund and provide educational and personal development programs for beneficiaries, with some programs becoming mandatory trustee duties.
Expanded Trustee Powers: Trustees now have discretionary authority to provide well-being services.
Codification of Letters of Wishes: Trustors can guide trustees on trust intent, requiring precise drafting to avoid future disputes.
Broadened Beneficiary Representation: The law expands who can be represented in trust matters, including minors and unascertainable beneficiaries, and clarifies rules for virtual representation.
Simplified Asset Transfers: Changes to the Uniform Transfer on Death Security Registration Act allow for easier registration of assets like LLCs in beneficiary form.
The Trust Act 2024 isn’t limited to the ultra-wealthy; it appeals to any family wanting heirs to gain financial literacy and a connection to their family legacy. While the law offers innovative opportunities, advisors and families must carefully consider its complexities to maximize its benefits.
