Delaware Senate Bill 239 (Prior Session Legislation)

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Completed Legislative Action
Spectrum: Slight Partisan Bill (Democrat 8-3-1)
Status: Passed on July 8 2010 - 100% progression
Action: 2010-07-02 - Signed by Governor
Text: Latest bill text (Draft #1) [HTML]

Sections 1 and 2 of the Act is intended to clarify the meaning of the term “willful misconduct” as used in Chapter 33 of Title 12 and governing instruments. Section 3 of the Act is intended to clarify the effect of a governing instrument provision regarding the retention of property. Section 4 of the Act conforms Subsection (c) with Subsection (b) of Section 3312. Section 5 of the Act is intended to assure that Delaware trusts meet the safe harbor requirements of Revenue Ruling 2008-22 regarding grantor trusts. Section 6 of the Act clarifies the duty of co-fiduciaries to keep one another informed in certain circumstances. Sections 7 and 8 of the Act clarify the nature and scope of certain statutory trustee powers. Sections 9 and 17 of the Act address the nature of tenancy by the entireties property following its contribution to certain trusts. Section 10 of the Act redesignates certain Sections of Chapter 35 as part of the Delaware Uniform Principal and Income Act. Sections 11, 12 and 13 of the Act correct cross-references and possible grammatical errors. Section 14 of the Act clarifies current law regarding the permissibility of making a qualified disposition in trust to a trust having multiple co-trustees provided that at least one of the cotrustees is a “qualified trustee” within the meaning of the Qualified Dispositions In Trust Act. Section 15 of the Act clarifies the scope and nature of the powers and rights that may be retained by a transferor making a qualified disposition under the Qualified Dispositions In Trust Act. Section 16 of the Act revises 3570 to permit a transferor making a qualified disposition under the Qualified Dispositions In Trust Act to retain the right to income or principal payments in excess of the five percent amount permitted under prior law provided that the trust is either a grantor-retained annuity trust or grantor-retained unitrust as defined in the Internal Revenue Code. Section 18 of the Act revises 3570 to clarify that the fiduciary responsible for distribution decisions and effecting distributions from a trust eligible to receive qualified dispositions pursuant to the Qualified Dispositions In Trust Act may be a qualified trustee within the meaning of that Act or may be an adviser or a co-trustee other than a qualified trustee. Section 19 of the Act conforms 3583 with the provisions of 3312 and other provisions of Title 12. Section 20 of the Act clarifies that the term “trustee” as used in the Delaware Uniform Principal and Income Act includes certain advisers. Section 21 of the Act clarifies that a fiduciary may make allocations between principal and income in a manner different from a result required or permitted by the Delaware Uniform Principal and Income Act whenever the fiduciary has the statutory trust power granted by 3325 (23) of Title 12 provided that the fiduciary satisfies the requirements of 61-103(b) of the Delaware Uniform Principal and Income Act when making any such allocation. Section 22 of the Act provides for the effective date of the Act.

An Act To Amend Title 12 Of The Delaware Code Relating To Fiduciary Relations.

Rep. Edward Bennett [D]	Sen. George Bunting [D]	Sen. Dorinda Connor [R]	Sen. Nancy Cook [D]
Sen. Anthony DeLuca [D]	Rep. George [?]	Sen. Michael Katz [D]	Rep. Helene Keeley [D]
Sen. Gregory Lavelle [R]	Rep. Michael Ramone [R]	Sen. David Sokola [D]	Rep. John Viola [D]

2010-06-17 - House - House Third Reading (Y: 37 N: 0 NV: 0 Abs: 4) [PASS]
2010-06-08 - Senate - Senate Third Reading (Y: 21 N: 0 NV: 0 Abs: 0) [PASS]

Date	Chamber	Action
2010-07-02		Signed by Governor
2010-07-08		Signed by Governor
2010-06-17		Passed by House of Representatives. Votes: Passed 37 YES 0 NO 0 NOT VOTING 4 ABSENT 0 VACANT
2010-06-16		Reported Out of Committee (ECONOMIC DEVELOPMENT/BANKING/INSURANCE/COMMERCE) in House with 2 Favorable, 4 On Its Merits
2010-06-09		Introduced and Assigned to Economic Development/Banking/Insurance/Commerce Committee in House
2010-06-08		Passed by Senate. Votes: Passed 21 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
2010-06-08		Amendment SA 1 - Passed by Senate. Votes: Passed 21 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
2010-06-03		Amendment SA 1 - Introduced and Placed With the Bill in Senate
2010-06-02		Reported Out of Committee (BANKING) in Senate with 4 On Its Merits
2010-05-04		Assigned to Banking Committee in Senate

Type	Source
Summary	http://legis.delaware.gov/LIS/lis145.nsf/2bede841c6272c888025698400433a04/01715be6e2bb4bc0852576f1006cd194?OpenDocument
Text	http://legis.delaware.gov/LIS/lis145.nsf/vwLegislation/SB+239/$file/legis.html?open
Roll Call	http://legis.delaware.gov/LIS/lis145.nsf/7712cf7cc0e9227a852568470077336f/3380ac8cb51317df8525773c0076f2e6?OpenDocument
Roll Call	http://legis.delaware.gov/LIS/lis145.nsf/7712cf7cc0e9227a852568470077336f/dd8c136d0d265149852577450076e685?OpenDocument