Delaware’s Trust Act 2024, which was recently signed into law, includes a unique and first-of-its-kind provision that lets people set up a “beneficiary well-being trust.” These trusts require the trustee to arrange for beneficiary well-being and education programs based on the trustor’s wishes.
These can be designed to help younger generations learn about finance and investing so that they can better grow and preserve family wealth. They can include anything from seminars and college courses to hiring a financial advisor. However, this option isn’t limited to those with high assets. They’re for anyone (even if they don’t live in Delaware) who wants to make sure that beneficiaries have the financial literacy they need to handle their inheritance.
Those who establish these trusts can also require that the beneficiaries learn about their family history, values, commitment to philanthropy and more. This could include something as simple as regular family meetings or get-togethers to travel abroad to explore the family roots. The cost of any activities or people hired under this trust comes out of the trust itself.
Letters of wishes are now included in the law
Just what those who establish a trust want the trustee to do can be detailed in a “letter of wishes.” These letters, which help provide details that can help trustees as they use their discretionary powers are nothing new, but the Trust Act 2024 codifies the letter of wishes into the law to provide greater specificity for trustees about their authority.
These letters of wishes should never be rushed. However, If you’re setting up a family trust that you intend to last for generations, it’s crucial that you keep in mind that these wishes may carry forward decades or even longer into the future.
Delaware is known for its unique trust and estate planning laws that attract those from across the country to establish trusts here. Regardless of how simple and straightforward you believe your estate planning needs are, it’s always wise to partner with an estate planning professional to help ensure that your plan meets your and your family’s needs.
