Delaware Senate Bill 83 (Prior Session Legislation)

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Completed Legislative Action
Spectrum: Bipartisan Bill
Status: Passed on July 13 2011 - 100% progression
Action: 2011-07-13 - Signed by Governor
Text: Latest bill text (Draft #1) [HTML]

Section 1 of the Act is intended to exempt life insurance contracts and annuity contracts from execution or attachment process to the same extent as retirement plan assets. Section 2 of the Act is intended to clarify the meaning of the term “wilful misconduct” as used in Chapter 33 of Title 12 and governing instruments. Section 3 of the Act clarifies that valuation of a trust asset may be an investment decision as defined in Section 3313(d). Section 4 of the Act clarifies that tenancy by the entireties property conveyed in trust by a husband and wife may retain its character as such even if the husband and wife convey their respective interests in the property to different trusts. Section 5 of the Act revises Section 3335 in light of the enactment of a federal estate tax generally applicable to decedents dying during 2010 unless the decedent’s fiduciaries elect out of the application of the tax. Section 6 of the Act reorganizes Section 3528 for clarity and clarifies how the statute applies to an open class of beneficiaries. Section 7 of the Act clarifies the standard of care applicable to a trustee when exercising the authority granted pursuant to Section 3528 and clarifies when that authority is available to a trustee. Section 8 of the Act addresses the procedure for providing information about trusts to various persons. Section 9 of the Act clarifies existing law regarding the application of Section 3546 to both revocable and irrevocable trusts. Section 10 of the Act clarifies who may represent a minor under Delaware’s virtual representation statute in cases where one parent has sole custody of the minor. Section 11 of the Act is intended to clarify 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 co-trustees is a “qualified trustee” within the meaning of the Qualified Dispositions in Trust Act. Section 12 of the Act confirms existing Delaware law and is intended to clarify the nature of one type of claim excluded from the scope of the protection generally afforded against creditor claims by the Qualified Dispositions in Trust Act. Section 13 of the Act clarifies the rules regarding the payment of attorney’s fees from trusts governed by the Qualified Dispositions in Trust Act and includes a provision for trusts governed by the Qualified Dispositions in Trust Act comparable to the provision for revocable trusts appearing in Section 4 of the Act. Section 14 of the Act clarifies that Delaware’s virtual representation statute (12 Del. C. 3547) applies to consents, releases and ratifications pursuant to Section 3588. Section 15 of the Act revises the provisions of the Delaware Uniform Principal and Income Act regarding the circumstances in which a trustee may rely upon a statement about the source or character of a distribution from an entity. Section 16 of the Act places a duty to make property productive of income upon the trustee in certain circumstances while preserving the income beneficiary’s right described in the current version of Section 61-413. Section 17 of the Act is intended to clarify the provisions of current law which state categorically that a trust has an insurable interest in the life of the person who creates the trust. Section 18 of the Act is intended to clarify current law regarding how the Delaware rule against perpetuities for real property held in trust applies in cases where an indirect interest in real property is held by a trust through the trust’s ownership of an interest in an entity that in turn owns an interest in real property. Section 19 of the Act provides for the effective date of the Act.

An Act To Amend Titles 10, 12, 18 And 25 Of The Delaware Code Relating To Judicial Procedure, Fiduciary Relations, Insurance And Property.

Rep. Edward Bennett [D]	Sen. Patricia Blevins [D]	Sen. Colin Bonini [R]	Sen. Anthony DeLuca [D]
Rep. George [?]	Sen. Bethany Hall-Long [D]	Rep. Deborah Hudson [R]	Rep. Helene Keeley [D]
Rep. Bryon Short [D]	Rep. Lincoln Willis [R]

2011-06-29 - House - House Third Reading (Y: 41 N: 0 NV: 0 Abs: 0) [PASS]
2011-06-15 - Senate - Senate Third Reading (Y: 20 N: 0 NV: 0 Abs: 1) [PASS]

Date	Chamber	Action
2011-07-13		Signed by Governor
2011-06-29		Passed by House of Representatives. Votes: Passed 41 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
2011-06-22		Reported Out of Committee (ECONOMIC DEVELOPMENT/BANKING/INSURANCE/COMMERCE) in House with 7 On Its Merits
2011-06-16		Introduced and Assigned to Economic Development/Banking/Insurance/Commerce Committee in House
2011-06-15		Passed by Senate. Votes: Passed 20 YES 0 NO 0 NOT VOTING 1 ABSENT 0 VACANT
2011-06-08		Reported Out of Committee (JUDICIARY) in Senate with 4 On Its Merits
2011-05-31		Assigned to Judiciary Committee in Senate

Type	Source
Summary	http://legis.delaware.gov/LIS/lis146.nsf/2bede841c6272c888025698400433a04/a213b84e26bb976985257887006df105?OpenDocument
Text	http://legis.delaware.gov/LIS/lis146.nsf/vwLegislation/SB+83/$file/legis.html?open
Roll Call	http://legis.delaware.gov/LIS/lis146.nsf/7712cf7cc0e9227a852568470077336f/5a658415c00108cf852578b000751ca0?OpenDocument
Roll Call	http://legis.delaware.gov/LIS/lis146.nsf/7712cf7cc0e9227a852568470077336f/e2431ae1b455bd5b852578be00780dcd?OpenDocument