Delaware’s New Beneficiary Well-Being Statute

Passing wealth through generations offers benefits like tax savings and asset protection but can negatively impact beneficiaries if they receive too much money without understanding its responsibilities. To address this, a new approach uses trust funds to support educational programs that prepare beneficiaries for wealth management. In 2024, Delaware introduced Section 3345, allowing the creation of beneficiary well-being trusts, which promote engagement, education, and overall well-being, making it the first statute of its kind in the US.

Morris Nichols partner Todd Flubacher recently co-authored an article explaining Delaware's new beneficiary well-being statute with Kirstin Keffeler of Johnson Financial Group, LLC, Elizabeth M. Luk of BNY Mellon, and Jennifer E. Smith of McCollum D'Emilio Smith Uebler LLC. 

In their WealthManagement.com article, the authors explore Delaware's Beneficiary Well-Being Trust Statute—a pioneering approach to trust planning that emphasizes personal growth and development in addition to financial security. They explain how this statute goes beyond traditional trust provisions by establishing a framework that supports beneficiaries throughout all stages of life.

The full article is available here. 

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Todd A. Flubacher, Kristin Keffeler, and Jennifer E. Smith, “Delaware’s New Beneficiary Well-Being Statute”
WealthManagement.com (January 2025)