Delaware Case Raises Issues for Estate Planners

Morris, Nichols, Arsht & Tunnell LLP sent out a Delaware Trusts, Estates, & Tax Law Update (Aug. 2010). The update discusses the recent Delaware Court of Chancery opinion in Stone v Stant. The introduction is below:

A recent Delaware Court of Chancery opinion raises several issues of importance to estate planners and fiduciaries. While largely concerned with the fact-intensive questions of testamentary capacity and undue influence common to trust and estate litigation, the opinion is notable in its consideration of the efficacy of debt-forgiveness documents, the liability and calculation of damages incidental to the prudent investor standard, and the complications arising from having Delaware estate-planning documents drafted by out-of-state counsel. This summary will focus upon these three, more broadly applicable aspects of the opinion, and will touch only lightly upon the remainder of the Court’s analysis.