Committee reviews routine trust‑code updates in two House bills

The committee considered two House bills to update Delaware trust law. House Bill 297 would amend Titles 12 and 25 to clarify how fiduciaries and nonfiduciaries make decisions, refine directed‑trust and beneficiary‑well‑being provisions, and streamline nonjudicial procedures for appointing trustees. The bill is reported by the trust section of the state bar as part of an ongoing annual update process.

House Bill 298 would amend the Delaware Statutory Trust Act to reflect recent alternative‑entity changes, update control‑beneficial‑interest acquisition disclosures for certain registered investment companies, provide liability protections for trust advisers comparable to trust officers, and clarify operational and dissolution provisions.

Public testimony and technical questions: Alex Lyden, chair of the Trusts and Estates Section of the Delaware Bar Association, described HB 297 as routine and not likely to make headlines but useful for industry clarity. David Harris, speaking for the Delaware Statutory Trust Committee of the bar, explained that a certificate of trust is typically a one‑page document that shows a trust's name and Delaware resident trustee and that banks have differing internal policies about whether they require the full trust agreement. Committee members asked about which provisions apply to registered investment companies versus ordinary statutory trusts; witnesses said the acquisition‑disclosure rules apply only to registered investment companies under the 1940 Act.

Committee action: The committee heard questions and public comment and did not take final votes during this meeting.