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Delaware Laws | Title 12 Decedents' Estates and Fiduciary Relations
CHAPTER 35. TRUSTS
Subchapter III. General Provisions

(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. (3479)

(25 Del. Laws, c. 226, Sec. 1; Code 1915, Sec. 3873; Code 1935, Sec. 4399; 12 Del. C. 1953, Sec. 3538; 70 Del Laws, c. 186, Sec. 1; 75 Del. Laws, c. 189, Sec. 3; 77 Del. Laws, c. 98, Sec. 17.) (3480)

Sec. 3539. Charitable trust; sale of timber on lands; application of proceeds. (3481)(Text)

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. (3482)

(Code 1852, Sec. 1948; Code 1915, Sec. 3881; Code 1935, Sec. 4405; 12 Del. C. 1953, Sec. 3539.) (3483)

Sec. 3540. Powers and duties of certain trustees. (3484)(Text)

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 Sec.Sec. 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. Sec.Sec. 4941-4945], or corresponding provisions of any subsequent United States internal revenue law. (3485)

(12 Del. C. 1953, Sec. 3540; 58 Del. Laws, c. 88.) (3486)

Sec. 3541. Administration of charitable trusts or noncharitable purpose trusts; cy pres rule. (3487)(Text)

(a) 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 religious, charitable, scientific, literary, educational, or noncharitable purpose: (3488)

(1) The trust does not fail in whole or in part; (3489)

(2) The trust property does not revert to the trustor or the trustor's successors in interest; and (3490)

(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. (3491)

(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. (3492)

(c) For purposes of this section, a "noncharitable purpose" is a purpose within the meaning of Sec. 3555 or Sec. 3556 of this title. (3493)

(62 Del. Laws, c. 131, Sec. 1; 70 Del Laws, c. 186, Sec. 1; 72 Del. Laws, c. 388, Sec. 8; 76 Del. Laws, c. 90, Sec. 6; 76 Del. Laws, c. 254, Sec. 10.) (3494)

Sec. 3542. Termination of small trusts. (3495)(Text)

(a) Unless otherwise provided by the terms of the trust instrument, and subject to the other subsections of this section, a corporate trustee of a trust 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. (3496)

(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. (3497)

(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. (3498)

(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 that all interested persons have been further notified in writing of such objection, of the trustee's intention to proceed to terminate such trust notwithstanding such objection, and of their right to petition the Court to prevent the termination or modify the plan of distribution within 6 months from the mailing of such further notice, and provided that at least 6 months have elapsed since such further notice was sent by the trustee, or the trustee has received a written waiver of the right to petition the Court from all interested persons. (3499)

(e) Any interested person, within 6 months of the mailing of such further notice of the trustee's intention to proceed with termination, notwithstanding an objection, may petition the Court to prevent such termination or modify the plan of distribution, or may send to the trustee a written waiver of such right to petition. (3500)

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