Delaware is known for offering trusts that few, if any, other states offer. Delaware’s Trust Act 2024 established a first-of-its-kind “Beneficiary Well-Being Trust.”
These trusts are intended to provide beneficiaries with opportunities to learn how to manage their wealth effectively, continue to grow it for future generations and use it for the greater good.
What can the assets be used for?
The funds in the trust cover the costs of “well-being programs” that teach family members:
- Multigenerational estate and asset transfers and planning
- Financial, business, entrepreneurship and wealth management skills
- Philanthropy
- Family history and legacy
Essentially, these trusts are designed to help people ensure that their heirs are prepared to manage and grow the personal and business assets they hand down and carry on the family name with pride.
The trust assets can be used for college courses, seminars, hiring financial and other advisors and even family retreats. Because the assets used for these purposes are considered administrative expenses rather than distributions, they aren’t subject to the same taxes.
Letter of wishes
The person who establishes the trust can detail their goals for the trust and the trustee who is administering it in a “letter of wishes.” The law describes this as a document that “contains statements regarding the trustor’s intent regarding the governing instrument, but is not itself a governing instrument.”
Delaware is known for its unique trust and estate planning laws that are available not just to state residents but in some cases to people in other states. It can be worthwhile to determine what estate planning tools are most advantageous for you and your family. Getting experienced estate planning guidance is a good place to start.