Delaware Enacts Trust Act 2009

The Trust Act 2009 made the following additions to the previous Trust Act 2007 in Delaware:

• Subsection (b) now allows a virtual representative of a presumptive remainder beneficiary who is a minor, incapacitated, unborn, or an unascertainable person to represent and bind contingent successor remainder beneficiaries.
• Subsection (c) was added, allowing custodial parents or guardians of a minor or incapacitated beneficiary to bind such a beneficiary if certain conditions are met.
• Subsection (d) was added, clarifying two procedural issues:
• • Virtual representation may be used in any judicial or non-judicial proceeding.
  • The Virtual Representation Statute applies to any proceeding before a Delaware court, even if the laws of another state govern the involved trust.

See 12 Del.C. § 3547 (2009); see also Morris, Nichols, Arsht, & Tunnel, LLP,  Delaware Virtual Representation: Increasing Efficiency in Trust Matters, Trusts, Estates, and Tax Law Update, Trusts, Estates, & Tax Law Update, April 2010.