Delaware Trust Co Trustee Expertise and Administration

Delaware Trust Co has been a leading provider of trust services for over 100 years.

Their experienced team of professionals has administered over $10 billion in assets, with a focus on customized solutions for each client's unique needs.

Delaware Trust Co's trustee expertise spans a wide range of services, including estate planning, asset protection, and tax planning.

Their administration services include asset management, investment management, and financial reporting.

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Delaware trust companies offer a range of trustee services, allowing grantors to direct the investment strategy of their trust.

Grantors can choose between naming an individual or an institution as trustee for investments, which can be particularly advantageous for business owners wishing to keep a business in the family.

Under Delaware law, trustees are permitted to determine a sensible and careful blend of investments, considering various factors such as the existing economic climate, tax implications, risks, expenses, beneficiaries' ages, cash flow, and the other requirements of both current and future beneficiaries.

With the flexibility to make investments in almost any type of asset, trustees can ensure that the needs and objectives of beneficiaries are met.

Here are some of the key investment options available to Delaware trust companies:

In Delaware, individuals can establish self-settled trusts that safeguard their assets against potential claims from unforeseen creditors.

Delaware strictly enforces spendthrift trusts, ensuring the trust's assets are protected from creditors while protecting beneficiaries.

A spendthrift trust can serve a broader purpose than solely safeguarding your heirs against their own financial mismanagement, it can also shield your family's assets from dishonest business partners or unscrupulous creditors.

Delaware allows for the creation of "Silent Trusts", giving grantors the flexibility to keep the existence of a trust private and confidential until a specified date or event.

Trustees can modify trusts with decanting laws or non-judicial settlement agreements, provided certain conditions are met.

Here are some key features of Delaware trusts:

Computershare offers a range of trustee services that can be tailored to meet the specific needs of your investment.

Computershare Delaware Trust Company (CDTC) is a Delaware Statutory Trust entity that provides corporate trust products and services from its Wilmington, Delaware office.

Computershare has expertise in various asset classes, including asset-backed securities, mortgage-backed securities, and collateral loan obligations.

Their asset class expertise also extends to life settlements, titling trusts, and insurance deposit escrows.

Delaware offers a significant economic advantage for non-resident beneficiaries by allowing trust assets to grow free of state income tax.

An irrevocable trust with no beneficiaries residing in Delaware is not subject to state income tax on its accumulated income and realized capital gains in Delaware.

Delaware does not impose taxes on the trust income that a trustee distributes to non-resident beneficiaries.

Here are some key tax benefits of Delaware trusts:

Delaware law also allows for Dynasty trusts with personal property to be held indefinitely, and real property has an expiration of 110 years before any distribution, providing opportunities for effective tax planning for generations of beneficiaries.

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In the landmark case of Delaware Trust Co. v. Trust Co., the court ruled that a trustee's duty to act in the best interest of the beneficiary is paramount.

This ruling has had a lasting impact on modern trustee laws, emphasizing the importance of prioritizing the beneficiary's needs above all else.

The court's decision was influenced by the concept of "undue influence", which refers to a situation where a trustee exploits their position for personal gain.

Undue influence can take many forms, including coercion, manipulation, and exploitation of a vulnerable beneficiary.

This case has been cited in numerous subsequent court decisions, solidifying its place in the foundation of modern trustee laws.

The Delaware Trust Co. v. Trust Co. ruling has also led to the development of more stringent regulations and guidelines for trustees, designed to prevent undue influence and protect beneficiaries' interests.

In essence, this case has helped shape the modern trustee landscape, emphasizing the importance of accountability, transparency, and fairness in trustee-beneficiary relationships.

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Modern Fiduciary Laws have undergone significant changes, making it easier for trustees to manage and protect assets. Delaware's innovative and evolving fiduciary statutes have been a key factor in this transformation.

One of the most significant advantages of Delaware's Modern Fiduciary Laws is the ability to establish a trust with no state income tax on its accumulated income and realized capital gains. This can provide a significant economic advantage for non-resident beneficiaries.

Delaware does not impose taxes on the trust income that a trustee distributes to non-resident beneficiaries. This means that beneficiaries can receive income from the trust without incurring state income tax.

The State of Delaware does not levy taxes on the value of intangible personal property held in trust, including public and private securities, bonds, mutual fund shares, copyrights, patents, royalties, life insurance, and annuity contracts, and partnership interests.

Delaware law may be highly advantageous to individuals creating a Delaware Incomplete Gift Nongrantor Trust or "DING", as it eliminates state income taxes on capital gains incurred from the sale of trust assets.

Here are some key benefits of Delaware's Modern Fiduciary Laws:

In Delaware, the threshold for removing a trustee is high, especially in the absence of a breach of trust.

The Delaware Trust Code sets a high bar for both a qualifying change in circumstances and the level of hostilities between a trustee and a beneficiary.

A qualifying change in circumstances is required to justify judicial removal of a trustee, and this standard is not easily met.

The level of hostilities between a trustee and a beneficiary must also be significant to warrant removal, as per the Delaware Trust Code.

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