Chapter 35

§ 3501 Appointment authorized; effect of execution of power by appointee. When any person or persons or any of such persons as may be the donee or donees of any power or powers under any trust are out of the jurisdiction of or not amenable to the process of the Court of Chancery or are mentally ill or it is uncertain whether such person or persons or any of such persons are living or dead, the Court of Chancery may, when in its discretion it may deem the objects and purposes of any such trust are in danger of not being performed or effectuated, appoint a person or persons to execute the power or powers under any such trust and such execution shall be made, by such person or persons so appointed, in the same manner and by the same method as shall be pointed out by the trust, whereby such power or powers were created. Such execution of any such power or powers by any person or persons so appointed shall be as effectual, to all intents and purposes, and with the same force and effect as if the same had been executed by such donee or donees. The Court of Chancery shall be satisfied that the beneficial interests of the donees or other beneficiaries under such trust are not by such action impaired. 21 Del. Laws, c. 122, §  1 ; Code 1915, §  3863; Code 1935, §  4387; 12 Del. C. 1953, §  3501; 49 Del. Laws, c. 57, §  1 ; § 3502 Procedure for appointment of trustee. The Court of Chancery may make any appointment or direction under § 3501 of this title, by an order made in any cause pending in that Court or upon petition of 1 or more of those interested in the trust or by the remaining or surviving donee or donees of any such power or powers. The Court of Chancery may, upon presentation of any such petition, take such testimony as it deems necessary to satisfy the Court that the granting of such petition will not impair the beneficial interest of any of the donees and other beneficiaries under such trust. Such testimony may be taken orally, at the bar of the Court, or by depositions. 21 Del. Laws, c. 122, §  2 ; Code 1915, §  3864; Code 1935, §  4388; 12 Del. C. 1953, §  3502; § 3503 Appointment of trustee to convey realty; effect of conveyance by appointee. When any person seised of lands, tenements or hereditaments upon any trust is out of the jurisdiction of or not amenable to the process of the Court of Chancery or is mentally ill or it is uncertain where there were several trustees which of them was the survivor or it is uncertain whether the trustee last known to have been seised as aforesaid is living or dead or, if known to be dead, it is not known who are the trustee’s heirs at law or if any trustee seised as aforesaid or the heirs at law of any such trustee neglect or refuse to convey such lands, tenements or hereditaments to the person entitled to receive such conveyance, for 20 days next after a proper deed for making such conveyance has been tendered for such person or their execution, by the person so entitled or the person’s agent or attorney, the Court of Chancery for the county wherein such lands, tenements or hereditaments are situated may appoint a person to convey the same to such person and in such manner as the Court directs. Any conveyance so made shall be as effectual, to all intents and purposes, as if the same had been executed by the trustee or the trustee’s heirs at law. 11 Del. Laws, c. 90, §  1 ; Code 1915, §  3865; Code 1935, §  4389; 12 Del. C. 1953, §  3503; 49 Del. Laws, c. 57, §  1 ; 70 Del Laws, c. 186,, §  1; § 3504 Appointment of trustee to assign term of years; effect of assignment by appointee. When any person possessed of lands, tenements or hereditaments for a term of years upon trust is out of the jurisdiction or not amenable to the process of the Court of Chancery or it is uncertain whether the trustee last known to have possessed as aforesaid is living or dead or if any trustee or the executor of any such trustee neglects or refuses to assign such term to the person entitled to receive such assignment, for 20 days next after a proper legal instrument for making such assignment has been tendered for such person’s execution by the person so entitled or such person’s agent or attorney, the Court of Chancery for the county wherein such lands, tenements or hereditaments are situated may appoint a person to make such assignment to such person and in such manner as the Court directs. Any assignment so made shall be as effectual to all intents and purposes as if the same had been made by the trustee or the trustee’s executor. 11 Del. Laws, c. 90, §  2 ; Code 1915, §  3866; Code 1935, §  4390; 12 Del. C. 1953, §  3504; 70 Del Laws, c. 186,, §  1; § 3505 Appointment of trustee to transfer stock or collect and pay over dividends; effect of appointee’s acts. When any person in whose name as trustee or executor (either alone or together with the name of any other person) or in the name of whose testator (whether as trustee or beneficiary) any stock shall be standing or any other person who otherwise has power to transfer or join with any person in transferring any stock to which some other person is beneficially entitled is out of the jurisdiction or not amenable to the process of the Court of Chancery or it is uncertain whether such person is living or dead or if any such trustee or executor or other person neglects or refuses to transfer such stock or receive and pay over the dividends thereof to the person entitled to such stock or dividends, for 20 days next after request in writing by such person so entitled, the Court of Chancery may appoint a person to transfer such stock or to receive and pay over such dividends to the person entitled to the same. Such transfer, receipt or payment shall be as effectual to all intents and purposes as if made by such trustee, executor or other person. 11 Del. Laws, c. 90, §  3 ; Code 1915, §  3867; Code 1935, §  4391; 12 Del. C. 1953, §  3505; § 3506 Appointment of trustee to convey, assign or transfer trust property from discharged or removed trustee to successor. When any person who, having been discharged or removed from any trust by an order or decree of the Court of Chancery, neglects or refuses to convey, assign or transfer the subject matter of such trust to the person who has been appointed by such Court to be the trustee in lieu of the person so discharged or removed, the Court may, upon petition of the person appointed, order a conveyance, assignment or transfer of the subject matter of such trust to be made by a person by such order appointed for that purpose. Any conveyance, assignment or transfer so made shall be as effectual, to all intents and purposes, as if the same were made by the trustee so discharged or the trustee’s heirs or executors. 11 Del. Laws, c. 90, §  5 ; Code 1915, §  3869; Code 1935, §  4393; 12 Del. C. 1953, §  3506; 70 Del Laws, c. 186,, §  1; § 3507 Order of appointment. The Court of Chancery shall make any appointment or direction under §§ 3503-3506 of this title by an order made in any case pending in that Court or upon petition of the person entitled to such conveyance, assignment, transfer or payment. When the title of the person claiming such conveyance, assignment, transfer or payment may require investigation or it otherwise appears improper to make an order for the same on petition, the Court may direct a complaint to be filed to establish the right. 11 Del. Laws, c. 90, §  4 ; Code 1915, §  3868; Code 1935, §  4392; 12 Del. C. 1953, §  3507; § 3508 Appointment of fiduciary to receive benefits payable by the United States. (a) Whenever any military or administrative body or agency of the government of the United States of America is authorized or directed to pay monetary benefits to any person and the said body or agency requires that a trustee or guardian be appointed by a court to receive such benefits, the Court of Chancery, upon the presentation of a petition drawn and executed in conformity with the rules of the Court, upon evidence satisfactory to the Court, shall appoint a trustee or guardian with authority to receive said moneys and all other property, and to disburse and account for the same in accordance with the rules and orders of the Court. (b) There shall be no charge made by any public officer nor any costs taxed or allowed by the Court in any proceeding brought under this section or in subsequent proceedings brought by a fiduciary appointed under this section. (c) A trustee or guardian appointed under this section shall be entitled to such reasonable expenses and compensation as the Court allows. Code 1915, §  3869A; 31 Del. Laws, c. 64, §  1 ; 34 Del. Laws, c. 217, §  1 ; Code 1935, §  4394; 12 Del. C. 1953, §  3508; 54 Del. Laws, c. 245. ; § 3509 Vesting of title to trust property in successor trustee. Whenever the sole or surviving trustee dies or is removed or a trustee renounces a trust or a trust is created and no person is appointed by name or description to execute the same and whenever in such or any case a trustee shall be appointed by the Court of Chancery, then upon the giving by said trustee of the security required to be given by the trustee, all the trust property, estate and effects, of every kind whatsoever and wheresoever situate and being, shall forthwith and without any act or deed pass to and be vested in such new or succeeding trustee. 23 Del. Laws, c. 197, §  1 ; Code 1915, §  3870; Code 1935, §  4395; 12 Del. C. 1953, §  3509; 70 Del Laws, c. 186,, §  1; § 3510 Vesting of title to trust realty in successor trustee appointed pursuant to trust instrument; deed of appointment. Whenever any trust of real estate has been or shall hereafter be created by deed or will duly recorded or proved within this State and such deed or will contains provisions for the appointment by deed or instrument of writing of new trustees, either by a surviving trustee or trustees or by any other person or persons designated in and by such deed or will, upon the due execution and acknowledgment of a deed of appointment by the proper party or parties, and its being filed for record in the office of the recorder of deeds in and for the county in which the land which is the subject of the trust is situated, the legal title to the lands so held in trust shall thereupon vest in such new trustee or trustees in the same manner and with the same effect, to all intents and purposes, as if such trustees had been originally appointed by the deed or will creating the trust and no conveyance shall be necessary to vest such title. 19 Del. Laws, c. 250, §  1 ; Code 1915, §  3871; Code 1935, §  4396; 12 Del. C. 1953, §  3510; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 3521 Trustees’ accounts in general. Except as otherwise provided in §§ 3522-3524 of this title, trustees (which term, as used in this subchapter, includes successor trustees) shall not be required to file any accounts or inventories with respect to a trust. Trustees required, under §§ 3522-3524 of this title, to file accounts or inventories with respect to a trust shall do so as described in § 3525 of this title, unless later released from such obligation under § 3526 of this title. 79 Del. Laws, c. 352, §  4 ; § 3522 Trustees’ accounts for inter vivos trusts. Trustees of an inter vivos trust (whether or not property was bequeathed or devised to such trust by a testamentary disposition) shall not be required to file any accounts or inventories with respect to such trust, except: (1) To the extent provided in the governing instrument; (2) Upon an order of the Court of Chancery, for cause shown, expressly requiring an accounting by such trustees; or (3) If such trustees were appointed by the Court of Chancery, then as may be otherwise provided in the order of appointment. 79 Del. Laws, c. 352, §  4 ; § 3523 Trustees’ accounts in wills probated prior to April 5, 1909. Trustees named in wills probated prior to April 5, 1909, may file and submit accounts of their trusts at such times as they deem necessary and they shall be required to file and submit accounts only upon a rule of the Register in Chancery issued upon them pursuant to the written request of anyone beneficially interested in their trusts or upon the order of the Court of Chancery. 25 Del. Laws, c. 226, §  2 ; 26 Del. Laws, c. 258, §  1 ; Code 1915, §  3874; 40 Del. Laws, c. 232, §  1 ; Code 1935, §  4400; 12 Del. C. 1953, §  3523; 79 Del. Laws, c. 352, §  4 ; § 3524 Trustees’ accounts for other testamentary trusts [For application of this section, see 80 Del. Laws, c. 153, § 5]. (a) Trustees of a testamentary trust shall be required to file accounts as described in § 3525 of this title, except that: (1) Trustees subject to § 3523 of this title shall file accounts only in accordance with such section. (2) Trustees of a testamentary trust established under a will probated on or after April 5, 1909, but of a decedent dying on or before July 31, 2005, shall be required to file accounts as described in § 3525 of this title unless waived by express provision in such will, in which case such trustees shall be required to file such accounts only in accordance with the express terms, if any, of such will or upon order of the Court of Chancery with respect to any such trust. (3) Trustees of a testamentary trust established under the will of a decedent dying after July 31, 2005, shall be required to file accounts as described in § 3525 of this title only in accordance with the express terms, if any, of any such trust or upon order of the Court of Chancery with respect to any such trust. (b) [Repealed.] 79 Del. Laws, c. 352, §  4 ; 80 Del. Laws, c. 153, §  4 ; 81 Del. Laws, c. 320, § 5 ; § 3525 Filing of trustees’ accounts; contents; approval. (a) Trustees required to file accounts as provided in the governing instrument, or in an order of the Court of Chancery, shall file accounts as described in subsection (c) of this section only in accordance with the express terms, if any, of such governing instrument or order. (b) Trustees otherwise required to file accounts under §§ 3523 and 3524 of this title shall file accounts as described in subsection (c) of this section. (c) To the extent required in subsections (a) and (b) of this section above, trustees required to file accounts shall file with the Register in Chancery, in the county in which a will creating the trust was probated or in which such appointments were made, and submit for the approval of the Court of Chancery just and true accounts, showing all receipts and disbursements of their trusts, as the Court requires, but not oftener than once in 2 years, unless there is special occasion. Such accounts shall also show the manner in which the principal of the trust is invested. Upon the request of the trustee or of any party in interest the Court shall, and upon its own motion may, proceed to approve or disapprove the investments, but otherwise the Court shall approve or disapprove the remainder of the account without passing upon the manner in which the principal of the trust is invested. 25 Del. Laws, c. 226, §  2 ; 26 Del. Laws, c. 258, §  1 ; Code 1915, §  3874; 40 Del. Laws, c. 232, §  1 ; Code 1935, §  4400; 12 Del. C. 1953, §  3521; 51 Del. Laws, c. 326 ; 79 Del. Laws, c. 197, §  2 ; 79 Del. Laws, c. 352, §  4 ; § 3526 Release of obligation to file accounts. (a) Without the approval of the Court of Chancery, a trustee or trustees (in either case hereafter referred to as “trustee”) who would otherwise be required under §§ 3521-3524 of this title to file with the Register in Chancery just and true accounts for the approval of the Court of Chancery may be released from such obligation by the interested parties of the trust if the trustee sends a written notice and request for waiver and consent or nonobjection to the interested parties, which notice shall: (1) Describe the obligation of the trustee under §§ 3521-3524 of this title and identify the alternative means by which the trustee will provide the beneficiaries with the information formerly set forth in the account; (2) Request the interested person waive the obligations under §§ 3521-3524 of this title with respect to the trust and consent, or signify such person’s nonobjection, to the alternative means described in the notice for the dissemination of trust information; and (3) Request that a waiver and consent or nonobjection be executed by: a. The interested party personally; b. The interested party’s attorney ad litem; c. A person authorized to represent the interested party under § 3547 of this title or any successor statute; or d. A person authorized by applicable law to represent the interested party in transactions involving the trust (such as, but not limited to, the interested party’s attorney-in-fact or the Attorney General in the case of certain charitable beneficiaries). In addition, such waiver and consent or nonobjection shall: (i) be acknowledged by a person authorized to notarize documents (or a similar official if a document is signed in a foreign jurisdiction) or witnessed by a person who is not an interested party; and (ii) affirm that the party executing the waiver and consent or nonobjection has read, understood, and been provided with an opportunity to consult with counsel regarding the waiver and consent or nonobjection and the information provided therein. (b) For purposes of subsection (a) of this section, the “interested parties” means: (1) The trustor of the trust, if living; (2) All living persons who are currently receiving or eligible to receive distributions of income of the trust; (3) Without regard to the exercise of any power of appointment, all living persons who would receive principal of the trust if the trust were to terminate at the time of the giving of such notice and all living persons who would receive or be eligible to receive distributions of income or principal of the trust if the interests of all of the beneficiaries currently eligible to receive income under paragraph (b)(2) of this section were to terminate at the time of the giving of such notice; and (4) All persons acting as adviser or protector of the trust. (c) Any release of the obligations under §§ 3521-3524 of this title obtained in accordance with the provisions of subsection (a) of this section shall release the trustee from the reporting obligations of §§ 3521-3524 of this title for the duration of the trust, unless a shorter period of time is specified in the written notice provided to the interested parties or an order of a court of competent jurisdiction provides otherwise. (d) Upon being released from the obligations under §§ 3521-3524 of this title in accordance with provisions of subsection (a) of this section, the trustee shall provide notice of such release to the Register in Chancery in the county in which the trustee would otherwise have filed the accountings required under §§ 3521-3524 of this title, which notice shall include as exhibits copies of the requisite executed notices and requests for waiver and consent or nonobjection of the interested parties. 25 Del. Laws, c. 226, §  2 ; 26 Del. Laws, c. 258, §  1 ; Code 1915, §   3874; 40 Del. Laws, c. 232, §  1 ; Code 1935, §  4400; 12 Del. C. 1953, §  3521; 51 Del. Laws, c. 326 ; 79 Del. Laws, c. 197, §  2 ; 79 Del. Laws, c. 352, §  4 ; 80 Del. Laws, c. 153, §  4 ; § 3528 Trustee’s authority to invade principal or income in trust [For application of this section, see 80 Del. Laws, c. 153, § 5]. (a) Unless the terms of the instrument expressly provide otherwise, a trustee who has authority (whether acting at such trustee’s discretion or at the direction or with the consent of an adviser), under the terms of a testamentary instrument or irrevocable inter vivos trust agreement (including a trust that, by its terms, is revocable but was created by a settlor who presently lacks the capacity to revoke the trust), to invade the principal or income or both of a trust (the “first trust”) to make distributions to, or for the benefit of, 1 or more proper objects of the exercise of the power, may instead exercise such authority (whether acting at such trustee’s discretion or at the direction or with the consent of an adviser, as the case may be) by appointing all or part of such principal or income or both as is subject to the power in favor of a trustee of a second trust, which may be a separate trust or the first trust as modified after appointment under this section (the “second trust”) under an instrument other than that under which the power to invade is created or under the same instrument, provided, however, that, except as otherwise provided in this subsection: (1) The exercise of such authority is in favor of a second trust having only beneficiaries who are proper objects of the exercise of the power except that the governing instrument of the second trust may provide that, at a time or upon an event specified in the governing instrument, the remaining trust assets shall thereafter be held for the benefit of the beneficiaries of the first trust upon terms and conditions concerning the nature and extent of each such beneficiary’s interest that are substantially identical to the first trust’s terms and conditions concerning such beneficial interests; (2) In the case of any trust, contributions to which have been treated as gifts qualifying for the exclusion from gift tax described in § 2503(b) (26 U.S.C. § 2503(b)) of the Internal Revenue Code of 1986 (26 U.S.C. § 1 et seq.) (hereinafter referred to in this section as the “I.R.C.”), by reason of the application of I.R.C. § 2503(c) (26 U.S.C. § 2503(c)), the governing instrument for the second trust shall provide that the beneficiary’s remainder interest shall vest and become distributable no later than the date upon which such interest would have vested and become distributable under the terms of the governing instrument for the first trust; (3) The exercise of such authority does not reduce any income or unitrust interest of any beneficiary of a trust for which a marital deduction has been taken for federal tax purposes under I.R.C. § 2056 or § 2523 (26 U.S.C. § 2056 or § 2523) or for state tax purposes under any comparable provision of applicable state law; and (4) The exercise of such authority does not apply to trust property subject to a presently exercisable power of withdrawal held by a trust beneficiary who is the only trust beneficiary to whom, or for the benefit of whom, the trustee has authority to make distributions. Notwithstanding the foregoing provisions of this subsection, the governing instrument for the second trust may grant a power of appointment (including a power to appoint trust property to the powerholder, the powerholder’s creditors, the powerholder’s estate, the creditors of the powerholder’s estate or any other person, whether or not such person is a trust beneficiary) to 1 or more of the trust beneficiaries who are proper objects of the exercise of the power in the first trust. The exercise of a trustee’s authority granted under this subsection shall in all respects comply with any standard that limits the trustee’s authority to make distributions from the first trust but may be exercised whether or not the trustee would have been permitted to exercise the power to make a current outright distribution of all of the trust assets in compliance with any such standard. For purposes of this subsection, an open class of beneficiaries identified in the governing instrument for the first trust (such as, but not limited to, a class comprised of the descendants of a person who is living or who has living descendants) is a proper object of the exercise of a power to make distributions and the exercise of such a power in favor of a second trust having only beneficiaries, including unborn future beneficiaries, who are among the members of the open class satisfies the requirement of paragraph (a)(1) of this section even if, pursuant to the terms of the governing instrument for the second trust, the class remains, or might remain, open beyond the time when the class would have closed pursuant to the terms of the governing instrument for the first trust; provided, however, that the governing instrument for the second trust shall not permit distributions to or among members of the open class sooner than when or in excess of the amounts permitted by the governing instrument for the first trust. A trustee’s power, pursuant to this subsection, to appoint principal in favor of the trustee of a second trust shall include the power to create the second trust. (b) The exercise of the power to invade the principal or income or both of a trust under subsection (a) of this section shall be by an instrument in writing, signed by the trustee. (c) The exercise of the power to invade the principal of the trust under subsection (a) of this section shall be considered the exercise of a power of appointment (other than a power to appoint to the trustee, the trustee’s creditors, the trustee’s estate, or the creditors of the trustee’s estate) and shall be subject to the provisions of Chapter 5 of Title 25 covering the time at which the permissible period of the rule against perpetuities begins and the law which determines the permissible period of the rule against perpetuities. Consequently, a second trust may have a term that is longer than the term set forth in the governing instrument for the first trust, including, but not limited to, a term measured by the lifetime of a current beneficiary. (d) The provisions of this section shall not be construed to abridge the right of any trustee who has a power of invasion to appoint property in further trust which arises under any other section of this chapter or under another statute or under common law. (e) When exercising the authority granted under subsection (a) of this section, the trustee and any adviser directing or consenting to the trustee’s exercise of such authority shall be held to the standard of care and the standard of liability applicable to the trustee and any such adviser when making outright distributions, free from trust, to or for the benefit of 1 or more permissible distributees. No trustee or adviser shall have a duty to exercise such authority nor, absent wilful misconduct, any liability to any person for failure to exercise such authority or failure to consider whether to exercise such authority. (f) This section shall be available to any trust that is administered in this State. Except as otherwise expressly prohibited in the governing instrument for the first trust which granted the trustee the authority to invade the principal or income or both of the first trust to make distributions to, or for the benefit of, 1 or more proper objects of the exercise of the power, the terms of the governing instrument for the first trust are deemed to include the decanting power. (g) The standard applicable to a trustee’s exercise of discretion under § 3315 of this title shall apply to a trustee’s authority under this section. 74 Del. Laws, c. 81, §  3 ; 74 Del. Laws, c. 271, §  2 ; 75 Del. Laws, c. 300, §  2 ; 76 Del. Laws, c. 90, §  3 ; 77 Del. Laws, c. 98, §  13 ; 78 Del. Laws, c. 117, §§  6, 7 ; 79 Del. Laws, c. 172, §  3 ; 79 Del. Laws, c. 352, §  4 ; 80 Del. Laws, c. 153, §  4 ; 81 Del. Laws, c. 149, § 2 ; 81 Del. Laws, c. 320, § 5 ; 82 Del. Laws, c. 52, § 2 ; 82 Del. Laws, c. 278, § 2 ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 3531 Renunciation by trustee named in trust instrument; filing and recording. Whenever, by any will, deed or other instrument, a trustee is named and before the acceptance of the trust the person named as such trustee renounces and declines to perform the duties imposed thereby, the trustee may make and file in the office of the Register in Chancery of the county where such will, deed or instrument may be probated or recorded a written renunciation setting forth in general terms the instrument of appointment and that trustee has not accepted the trust or exercised any powers or performed any duties thereunder and trustee declines to act under such appointment. The Register in Chancery shall record and index such renunciation in the Chancery docket. Code 1915, §  3871; 33 Del. Laws, c. 230, §  1 ; Code 1935, §  4397; 12 Del. C. 1953, §  3531; 70 Del Laws, c. 186,, §  1; 77 Del. Laws, c. 98, §  14 ; § 3532 Transfer of stocks, bonds or other corporate securities by trustee; certificate of Register in Chancery. Upon the transfer by trustees of the stocks, bonds or other securities of any corporation, the certificate of the Register of the Court of Chancery in which such trustee was appointed or other proper public official, according to the form and provisions of § 1572 of this title, shall be sufficient authority to the officers of such corporation to transfer or reissue such stocks, bonds or other securities to such person as such trustee in writing directs. 20 Del. Laws, c. 115, §  5 ; Code 1915, §  3878; Code 1935, §  4402; 12 Del. C. 1953, §  3532; § 3533 Sale of trust property free from trust; procedure. Upon petition of any trustee having the legal title to any property, real, personal or mixed, setting forth that the sale and conversion thereof would be for the best interests of the trust estate and the persons beneficially interested in the trust, the Court of Chancery may, by order made thereon in its discretion, except where such sale or conversion has been prohibited by the instrument creating the trust, authorize and direct such trustee to sell the whole or so much as may be proper of such trust property and to transfer and convey the same to the purchaser thereof, absolutely and in fee simple, freed from any trust and without liability on the part of such purchaser as to the application of the purchase money. In cases where the sale or conversion of trust property has not been expressly prohibited by the instrument creating the trust, but the instrument provides that the trustee shall sell or convert only with the consent of 1 or more persons or makes the trustee’s power of sale contingent on 1 or more persons joining in its exercise, the Court of Chancery may confer upon the trustee power to make the sale or conversion without such consent or without any 1 or more of such persons joining in the exercise of such power of sale if any 1 or more of the persons required to consent or to join in such exercise of the trustee’s power of sale shall be a minor, non compos mentis, have died, unreasonably withhold consent or be absent and unheard of and in the opinion of the Court the sale or conversion is for the best interests of the trust estate and the persons beneficially interested therein. The proceeds of all sales made under the authority of this section shall be held under and subject to the same trusts as those to which the property sold was subject and, in cases where real property is to be sold, the trustee thereof shall first give sufficient bond, with surety to be approved by the Court, for the preservation and protection of the proceeds of such sales for the purposes of the trust and subject to the orders and decrees of the Court in the premises. 20 Del. Laws, c. 115, §  4 ; Code 1915, §  3879; Code 1935, §  4403; 47 Del. Laws, c. 382, §  1 ; 12 Del. C. 1953, §  3533; § 3534 Notice procedure. Except as may be expressly provided in the trust instrument to the contrary, the following shall apply to any trust the administration of which is governed by this title: (1) Except for service or notice pursuant to a judicial proceeding whereby such matters are covered by an applicable court rule, any notice of, or communication pertaining to, a trust by a fiduciary of such trust to a beneficiary, other fiduciary or other person having an interest in the trust pursuant to the express terms of the trust instrument or by any such person to a fiduciary, including without limitation notice required under § 3312 of this title, may be given to such person, such person’s designated representative under § 3339 of this title, or such person’s representative under § 3547 of this title: a. By regular U.S. mail or commercial carrier to the mailing address reasonably determined to be such person’s address; b. By facsimile telecommunication to a number at which such person last consented to receive notice; c. By electronic mail to an electronic mail address at which such person last consented to receive notice; d. By a posting on an electronic network, provided notice of such posting is delivered to such person; e. By any other form of electronic transmission as to which such person last consented to receive notice; f. By regular U.S. mail or commercial carrier to the address at which such person last consented to receive notice; or g. By such other manner reasonably suitable under the circumstances and likely to result in receipt. (2) Notwithstanding any other provision of this Code or other law, a trustee shall have no duty to confirm the reliability of an approved address, and, without creating such a duty, a trustee may withhold notice, including to an approved address, while it exercises reasonable diligence to obtain confirmation that it has a reliable address for such person. (3) Any person may waive in writing the right to receive notice of a trust or other communications pertaining to a trust, and may thereafter rescind such waiver in writing delivered to the trustee. A trustee without actual notice to the contrary may rely on the representation of a predecessor trustee or a co-trustee pertaining to a waiver or rescission. (4) For purposes of this section: a. A “commercial carrier” shall mean a carrier authorized by the United States Department of the Treasury to deliver notices or returns for purposes of satisfying delivery under the Internal Revenue Code. b. The term “electronic transmission” shall mean any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process. 78 Del. Laws, c. 117, §  8 ; 83 Del. Laws, c. 343, § 1 ; § 3535 Powers of appointment, rule against perpetuities and restraints on alienation. The validity of an estate or interest in property created through the exercise of a power of appointment shall, for the purposes of any rule or law against perpetuities, remoteness of vesting, restraint upon the power of alienation or accumulations, be governed by Chapter 5 of Title 25. 12 Del. C. 1953, §  3535; 77 Del. Laws, c. 330, §  11 ; § 3536 Rights of creditors and assignees of beneficiary of trust [For application of this section, see 79 Del. Laws, c. 172, § 6]. (a) Except as expressly provided in subsections (c) and (d) of this section, a creditor of a beneficiary of a trust shall have only such rights against or with respect to such beneficiary’s interest in the trust or the property of the trust as shall be expressly granted to such creditor by the terms of the instrument that creates or defines the trust or by the laws of this State. The provisions of this subsection shall be effective regardless of the nature or extent of the beneficiary’s interest, whether or not such interest is subject to an exercise of discretion by the trustee or other fiduciary, and shall be effective regardless of any action taken or that might be taken by the beneficiary. Every interest in a trust or in trust property or the income therefrom that shall not be subject to the rights of creditors of such beneficiary as expressly provided in this section shall be exempt from execution, attachment, distress for rent, foreclosure, garnishment and from all other legal or equitable process or remedies instituted by or on behalf of any creditor, including, without limitation, actions at law or in equity against a trustee or beneficiary that seeks a remedy that directly or indirectly affects a beneficiary’s interest such as, by way of illustration and not of limitation, an order, whether such order be at the request of a creditor or on the court’s own motion or other action, that would: (1) Compel the trustee or any other fiduciary or any beneficiary to notify the creditor of a distribution made or to be made from the trust; (2) Compel the trustee or beneficiary to make a distribution from the trust whether or not distributions from the trust are subject to the exercise of discretion by a trustee or other fiduciary; (3) Prohibit a trustee from making a distribution from the trust to or for the benefit of the beneficiary whether or not distributions from the trust are subject to the exercise of discretion by a trustee or other fiduciary; or (4) Compel the beneficiary to exercise a power of appointment or power of revocation over the trust. Every direct or indirect assignment, or act having the effect of an assignment, whether voluntary or involuntary, by a beneficiary of a trust of the beneficiary’s interest in the trust or the trust property or the income or other distribution therefrom that is unassignable by the terms of the instrument that creates or defines the trust is void. No beneficiary may waive the application of this subsection. For purposes of this subsection, the creditors of a beneficiary shall include, but not be limited to, (i) any person that has a claim against the beneficiary, the beneficiary’s estate, or the beneficiary’s property by reason of any forced heirship, legitime, marital elective share, or similar rights, and (ii) a former spouse who has a claim against the beneficiary, the beneficiary’s estate, or the beneficiary’s property. The provisions of this subsection shall apply to the interest of a trust beneficiary until the actual distribution of trust property to the beneficiary. Regardless of whether a beneficiary has any outstanding creditor, a trustee may make direct payment of any expense on behalf of such beneficiary to the extent permitted by the instrument that creates or defines the trust and may exhaust the income and principal of the trust for the benefit of such beneficiary. A trustee shall not be liable to any creditor of a beneficiary for paying the expenses of a beneficiary. (b) Notwithstanding subsection (a) of this section, a beneficiary entitled to receive all or a part of the income of a trust shall have the right to assign gratuitously in writing, at any time or from time to time, a stated fraction or percentage of the beneficiary’s entire remaining income interest in such trust to the State or to any corporation, church, community chest, fund, or foundation authorized as a deduction pursuant to §§ 1107, 1108, and 1109 of Title 30 and such assignment shall be valid and binding on all parties irrespective of any restrictions on assignment contained in the instrument creating or defining the trust; provided, however, that this subsection shall not authorize a beneficiary of such a trust to reduce any part of the beneficiary’s income interest which is subject to such restrictions on assignment below 50% of what such interest would be if no assignments were made under this subsection. Any interest assigned under this subsection, together with a corresponding portion of the corpus of the trust, shall be treated as a separate share and thereafter no provision of the trust permitting invasion of corpus for the benefit of the assignor shall be exercisable with respect to such share. (c) Except as provided in subchapter VI of this Chapter 35, if the trustor is also a beneficiary of a trust, a provision that restrains the voluntary or involuntary transfer of the trustor’s beneficial interest shall not prevent such trustor’s creditors from satisfying their respective claims from the trustor’s interest in the trust to the extent that such interest is attributable to the trustor’s contributions to the trust. The trustor shall not be considered a beneficiary for purposes of this section, and a trustor’s creditors may not satisfy their respective claims from the trust, merely because: (1) The trustor may be named as an additional trust beneficiary; (2) The trustee, under the governing instrument or § 3344 of this title, may, in its discretion (or at the direction of or with the consent of an adviser other than the trustor), reimburse the trustor for any income tax liability attributable to the trust; (3) The trustor is a proper object of the exercise of a power of appointment over trust property held by someone other than the trustor; or (4) The trustor has retained a beneficial interest that is contingent upon surviving the trustor’s spouse (or surviving until the release of an interest by such a spouse under subsection (e) of this section) such as, but not limited to, an interest in an inter vivos marital deduction trust in which the interest of the trustor’s spouse is treated as qualified terminable interest property under § 2523(f) of the Internal Revenue Code of 1986 (26 U.S.C. § 2523(f)), as amended, an interest in an inter vivos marital deduction trust that is treated as a general power of appointment trust for which a marital deduction would be allowed under § 2523(a) and (e) of the Internal Revenue Code of 1986 (26 U.S.C. § 2523(a) and (e)), as amended, and an interest in an inter vivos trust commonly known as a credit shelter trust’' that used all or a portion of the trustor’s unified credit under § 2505 of the Internal Revenue Code (26 U.S.C. § 2505), as amended. Further, a beneficiary of a trust shall not be considered a trustor of the trust merely because of a lapse, waiver, or release of the beneficiary’s right to withdraw all or a part of the trust property. For purposes of paragraph (c)(3) of this section, if a person who otherwise would be considered a trustor of a trust becomes a beneficiary of a trust created by exercise of a testamentary power of appointment by another person, such person shall be treated as a beneficiary of such trust and shall not be treated as a trustor of the trust so created and such beneficiary’s creditors may not satisfy their respective claims from such beneficiary’s interest in the trust even if such beneficiary granted the power of appointment to the other person. (d) For purposes of subsection (a) of this section, a creditor shall have no right against the interest of a beneficiary of a trust or against the beneficiary or trustee of the trust with respect to such interest unless: (1) The beneficiary has a power to appoint all or part of the trust property to the beneficiary, the beneficiary’s estate, the beneficiary’s creditors, or the creditors of the beneficiary’s estate by will or other instrument such that the appointment would take effect only upon the beneficiary’s death and the beneficiary actually exercises such power in favor of the beneficiary, the beneficiary’s creditors, the beneficiary’s estate, or the creditors of the beneficiary’s estate but then only to the extent of such exercise. (2) The beneficiary has a power to appoint all or part of the trust property to the beneficiary, the beneficiary’s creditors, the beneficiary’s estate, or the creditors of the beneficiary’s estate during the beneficiary’s lifetime and the beneficiary actually exercises such power in favor of the beneficiary, the beneficiary’s creditors, the beneficiary’s estate, or the creditors of the beneficiary’s estate but then only to the extent of such exercise. (3) The beneficiary has the power to revoke the trust in whole or in part during the beneficiary’s lifetime and, upon such revocation, the trust or the part thereof so revoked would be possessed by the beneficiary. This paragraph shall have no application to any part of the trust that may not be so revoked by the beneficiary. (e) Notwithstanding subsection (a) of this section, unless the trust’s governing instrument expressly provides otherwise, a beneficiary of a charitable remainder unitrust or charitable-remainder annuity trust as such terms are defined in § 664 of the Internal Revenue Code of 1986 (26 U.S.C. § 664) and any successor provision thereto, shall have the right, at any time and from time to time, by written instrument delivered to the trustee, to release such beneficiary’s retained interest in such a trust, in whole or in part, in favor of-— or to assign such interest, in whole or in part, to-—a charitable organization that has or charitable organizations that have a succeeding beneficial interest in such trust. Notwithstanding subsection (a) of this section, unless the trust’s governing instrument expressly provides otherwise, a beneficiary may also disclaim an interest in a trust pursuant to Chapter 6 of this title. In addition, notwithstanding subsection (a) of this section, a trustor’s spouse holding an interest in a trust described in subsection (c) of this section shall have the right, at any time and from time to time, by written instrument delivered to the trustee, to release, assign, or otherwise dispose of within the meaning of § 2519 of the Internal Revenue Code of 1986 (26 U.S.C. § 2519), such spouse’s interest in such trust, in whole or in part, in favor of the beneficiary or beneficiaries having the next succeeding beneficial interest in such trust. Code 1915, §  3907(b); 38 Del. Laws, c. 186, §  1 ; Code 1935, §  4415; 12 Del. C. 1953, §  3536; 52 Del. Laws, c. 199, §  1 ; 70 Del Laws, c. 186,, §  1; 73 Del. Laws, c. 71, §  1 ; 74 Del. Laws, c. 81, §  4 ; 75 Del. Laws, c. 97, §  6 ; 75 Del. Laws, c. 301, §  7 ; 76 Del. Laws, c. 90, §§  4, 5 ; 76 Del. Laws, c. 254, §  9 ; 77 Del. Laws, c. 98, §§  15, 16 ; 77 Del. Laws, c. 330, §  12 ; 79 Del. Laws, c. 172, §  3 ; 79 Del. Laws, c. 352, §  4 ; 81 Del. Laws, c. 320, §  5 ; 82 Del. Laws, c. 52, § 2 ; 83 Del. Laws, c. 69, § 3 ; 83 Del. Laws, c. 343, § 2 ; 84 Del. Laws, c. 182, § 7 ; § 3536A Release of beneficial interests by beneficiaries. (a) Subject to the limitations and conditions of subsections (b) through (f) of this section, a beneficiary of a trust may, in whole or in part, release such beneficiary’s beneficial interest in the trust, including any discretionary power of withdrawal or consumption, with or without consideration, with respect to the whole or any part of the property subject to such interest. (b) A beneficiary may not release any condition in the governing instrument with which a beneficiary must comply to be eligible to receive a distribution from the trust. (c) This section does not apply to or supersede the following subjects under the following provisions of this Code: (1) An interest that may be disclaimed, or a power that may be disclaimed or released, under Chapter 6 of this title; (2) A beneficiary’s right to release, assign, or dispose of an interest in a trust under § 3536(b) or (e) of this title; or (3) The release of a power of appointment under § 502 of Title 25. (d) A beneficiary of a trust may not release such beneficiary’s interest if the terms of the governing instrument expressly prohibit such release; provided, however, that for purposes of subsection (e) of this section, a prohibition in the nature of a spendthrift provision or similar provision of the governing instrument does not constitute such an express prohibition of such a release. (e) A beneficiary of a trust having spendthrift provisions or similar protective provisions applicable to the beneficiary may not release the beneficiary’s interest in the trust’s income or principal of the trust, unless—as a result of the beneficiary’s being treated under subsection (h) of this section as having died or having ceased to exist because of the beneficiary’s release, as applied to the terms of the trust’s governing instrument—such released income or principal will be distributed to or held in further trust for 1 or more of the trustor’s descendants (other than the releasing beneficiary) or the releasing beneficiary’s descendants. (f) No release of an interest in a trust shall be deemed to make imperative—that is, convert a beneficial interest into a power that a beneficiary has a fiduciary duty to exercise—an interest that was not imperative before such release unless the governing instrument expressly so provides. (g) To be effective, the release of an interest under subsection (a) of this section must: (1) Be in a writing, which writing must declare that the releasing party is releasing the interest absolutely and unconditionally; (2) Declare the scope of the release, i.e., specify whether the release is with respect to the whole or any part of the property subject to such interest; (3) Describe the interest released; (4) Be signed by: a. The releasing party; b. A designated representative on behalf of the releasing party under § 3339 of this title, but only to the extent such designated representative is a fiduciary with respect to the releasing party or is otherwise expressly so authorized under the terms of the trust’s governing instrument to release such interest; c. An agent under a power of attorney, but only to the extent expressly authorized by the power of attorney or the terms of the trust’s governing instrument; or d. The guardian of the releasing party’s property (or similar court-appointed representative) with the approval of the court supervising the guardian (or similar court-appointed representative); and (5) Be delivered to all then-serving fiduciaries of the trust and to any person designated in the trust’s governing instrument to receive a release. (h) Unless otherwise specified in the trust’s governing instrument, a full or partial release under this section of any interest in a trust results in the releasing party being treated for purposes of the trust as having died or ceased to exist as of the time the release becomes effective, but only with respect to the interest so released. 83 Del. Laws, c. 343, § 3 ; § 3537 Conveyance of realty by infant trustee. Any person under the age of 18 years, having real estate in trust for others, may, by direction of the Court of Chancery given upon hearing all parties concerned on the petition of those for whom such infant is trustee or of the guardian of such infant, convey and assure such real estate, in such manner as the Court directs, to any other person. Such conveyance shall be as good and effectual in law as if the infant was of full age. Such infant may be compelled to execute such order, in like manner as trustees of full age are compellable to convey or assure trust estates. Code 1852, §  1947; Code 1915, §  3862; Code 1935, §  4386; 12 Del. C. 1953, §  3537; 58 Del. Laws, c. 511, §  16 ; § 3538 Testamentary trusts; certification of by Register of Wills to Register in Chancery; record. (a) When a will that has been probated before the Register of Wills for any of the counties of the State contains a bequest or devise in trust to pay the income arising from any part of the estate of the testator to or for the benefit of a person other than the person named as trustee and the will requires the filing of accounts with 1 of the Registers in Chancery, the Register of Wills before whom the probate is made shall, within 10 days after the closing of the estate, deliver to the Register in Chancery for that county a certificate setting forth the name and last address of the testator, the date of the probate of the testator’s will, the name and address of the trustee appointed thereby and the provisions of the will relating to said trust or trusts. This section shall apply only in those instances: (1) Where the documents closing the estate show a balance in the hands of the personal representative that can be distributed to the trust in order to fund it; and (2) That terms exist, as stated in the will, for the creation of the trust. In those instances where it is clear that no notice of the trust need be given to the Register in Chancery, the Register of Wills shall note on its files that no notice of the trust was given to it and state why. (b) The Register in Chancery for the several counties shall keep a record in which shall be entered the names of the testators, the names and post-office addresses of the trustees, the dates of their appointment or the dates upon which their trusts become operative and the dates on which their accounts are passed and shall file the certificates delivered to them by the Register of Wills among the records of their offices. 25 Del. Laws, c. 226, §  1 ; Code 1915, §  3873; Code 1935, §  4399; 12 Del. C. 1953, §  3538; 70 Del Laws, c. 186,, §  1; 75 Del. Laws, c. 189, §  3 ; 77 Del. Laws, c. 98, §  17 ; § 3539 Charitable trust; sale of timber on lands; application of proceeds. The Court of Chancery may, when in its judgment the exercise thereof will promote the interests of the charity, direct wood or timber growing on land conveyed or devised for charitable uses to be cut and sold and the proceeds applied to repairs or the purchase of lime or other manures and making other improvements of such real estate. This section shall apply only to cases where the whole interest in the land is the subject of charitable uses. Code 1852, §  1948; Code 1915, §  3881; Code 1935, §  4405; 12 Del. C. 1953, §  3539; § 3540 Powers and duties of certain trustees. All trustees of any trust governed by the laws of this State whose governing instrument or instruments do not expressly provide that this section shall not apply to such trust are required to act or to refrain from acting so as not to subject the trust to the taxes imposed by §§ 4941 (relating to taxes on self-dealing), 4942 (relating to taxes on failure to distribute income), 4943 (relating to taxes on excess business holdings), 4944 (relating to taxes on investments which jeopardize charitable purpose) or 4945 (relating to taxable expenditures) of the Internal Revenue Code of 1954 [26 U.S.C. §§ 4941-4945], or corresponding provisions of any subsequent United States internal revenue law. 12 Del. C. 1953, §  3540; 58 Del. Laws, c. 88. ; § 3541 Administration of charitable trusts or noncharitable purpose trusts; cy pres rule. (a) Notwithstanding any other provision of this Code or other law, a trust having any religious, charitable, scientific, literary or educational purpose (collectively, hereinafter referred to as a “charitable purpose”) or a noncharitable purpose shall not be modified to alter or eliminate such purpose except pursuant to § 3342 of this title or pursuant to this section. Subject to subsection (b) of this section, if a particular charitable purpose or noncharitable purpose becomes unlawful under the Constitution of this State or the United States or the trust would otherwise no longer serve any charitable or noncharitable purpose: (1) The trust does not fail in whole or in part; (2) The trust property does not revert to the trustor or the trustor’s successors in interest; and (3) The Court of Chancery shall modify or terminate the trust and direct that the trust property be applied or distributed, in whole or in part, in a manner consistent with the trustor’s charitable or noncharitable purposes, whether or not such purposes be specific or general. (b) The power of the Court of Chancery to modify or terminate a charitable or noncharitable purpose trust, as provided in subsection (a) of this section, is in all cases subject to a contrary provision in the terms of the trust instrument, whether such contrary provision directs that the trust property be distributed to a charitable or noncharitable beneficiary. (c) For purposes of this section, a “noncharitable purpose” is a purpose within the meaning of § 3555 or § 3556 of this title. 62 Del. Laws, c. 131, §  1 ; 70 Del Laws, c. 186,, §  1; 72 Del. Laws, c. 388, §  8 ; 76 Del. Laws, c. 90, §  6 ; 76 Del. Laws, c. 254, §  10 ; 81 Del. Laws, c. 149, § 2 ; § 3542 Termination of small trusts [For application of this section, see 80 Del. Laws, c. 153, § 5]. (a) Unless otherwise provided by the terms of the trust instrument, and subject to the other subsections of this section, a trustee of a trust (other than a trustee who is a settlor or beneficiary of the trust or who may be removed as trustee, by action of 1 or more settlors or beneficiaries and replaced as trustee, by action of the person or persons exercising the removal power, with a successor trustee who is either among the persons exercising the removal and replacement power or who is related or subordinate, within the meaning of § 672(c) of the Internal Revenue Code of 1986 (26 U.S.C. 672(c)), as amended, to any such person exercising the removal and replacement power), who finds that the costs of administration thereof are such that the continuance of the trust would defeat or substantially impair the purpose of the trust, may, after written notice to all interested persons, or their legal or natural guardians, terminate the trust and distribute the trust property to 1 or more of the beneficiaries in the trustee’s discretion. No court proceedings or approval is required to effect such a termination. (b) Any interested person shall have 30 days after receiving written notice in accordance with this section to object to the termination or plan of distribution in writing to such trustee. If the trustee has received no written objection to the proposed termination or plan of distribution within such 30-day period, it may proceed to terminate the trust. (c) A trustee which receives a written objection to the proposed plan of distribution of a trust within 30 days of the last day on which any interested person received written notice may reformulate the proposed plan of distribution and renotify all interested persons of its intentions. Such renotification shall begin again the 30-day period referred to in subsection (b) of this section. (d) A trustee which receives a written objection to the termination or plan of distribution of a trust within 30 days of the last day on which any interested person received written notice may proceed to terminate the trust in accordance with the plan of distribution, without court proceeding or approval, notwithstanding the objection, provided t