The House Economic Development, Banking, Insurance and Commerce Committee voted to release House Bill 103, a technical estates and trusts measure drafted by the Estates and Trusts section of the Delaware Bar and reviewed by the Court of Chancery.

A representative of the Estates and Trusts section, Joe Bacek, told the committee the bill codifies existing case law and clarifies several areas of Delaware trust practice. "This year was, I'd say, sort of a noncontroversial bill," Bacek said, describing changes that include confirming that a fiduciary may include an enforcer acting in a fiduciary capacity, clarifying that someone is not deemed a beneficiary of a purpose trust solely because they receive disbursements, and addressing when a person who accepts appointment as an enforcer submits to Delaware’s personal jurisdiction.

The bill also clarifies treatment of gifts to a trust by one spouse for the benefit of the other, aligning statutory language with existing practice so such a transfer is not treated as marital property unless the trust instrument expressly provides otherwise, Bacek said.

Committee members asked questions about the bill’s origins and whether it changed common practice; Bacek said the changes largely codify current practice and bring Delaware law in line with developments in other jurisdictions, noting the section’s annual review process for trust modifications.

There was no virtual public comment. A motion to release House Bill 103 passed on a roll call vote and the committee announced the bill had received the votes required for release.

Votes at a glance: Chair Bush (yes); Vice Chair Carson (yes); Representative Gray (yes); Representative Hensley (yes); Representative Ross Levin (yes); Representative Short (yes); Representative Schoop (yes); Representative Smith (yes); Representative Snyder Hall (yes); Representative Wilson Anton (yes); Representative York (yes). The bill was released from committee for further legislative action.