Delaware Trust Act 2022 Legislative Update

Delaware Governor John C. Carney recently signed House Bill 406 ("Trust Act 2022") into law. The legislation includes the following highlights:

• Enactment of new 12 Del. C. § 3536A, which permits trust beneficiaries to release their interest, in full or in part, even if the beneficiary previously accepted the benefits of such interest, subject to certain conditions and limitations.
• Amendment of 12 Del. C. § 3585, the statutory provision which codifies the limitations period applicable to an action against a trustee following the trustee's report: (i) clarifying that this section bars judicial proceedings; (ii) expanding the applicability of the bar beyond only beneficiaries; (iii) defining the presumption of receipt of a report to be seven (7) days after the report was sent in accordance with 12 Del. C. § 3534; (iv) providing that a person may waive the one year period under Subsection (a)(1) or the 120-day period under (a)(2) to accelerate what would otherwise