CHAPTER 195

FORMERLY

HOUSE BILL NO. 369

AN ACT TO AMEND TITLE 12 OF THE DELAWARE CODE RELATING TO QUALIFIED DISPOSITIONS IN TRUST.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend Title 12, Section 3572, Delaware Code, by deleting subsection (d) in its entirety and by adding thereto new subsections (d) and (e) to read as follows:

“(d) Notwithstanding any law to the contrary, a creditor, including a creditor whose claim arose before or after a qualified disposition, or any other person shall have only such rights with respect to a qualified disposition as are provided in this Section and Sections 3573 and 3574 of this title, and no such creditor nor any other person shall have any claim or cause of action against the trustee, or advisor described in Section 3570(8)c of this Title, of a trust that is the subject of a qualified disposition, or against any person involved in the counseling, drafting, preparation, execution, or funding of a trust that is the subject of a qualified disposition.

(e) Notwithstanding any other provision of law, no action of any kind, including, without limitation, an action to enforce a judgment entered by a court or other body having adjudicative authority, shall be brought at law or in equity against the trustee, or advisor described in Section 3570(8)c of this Title, of a trust that is the subject of a qualified disposition, or against any person involved in the counseling, drafting, preparation, execution, or funding of a trust that is the subject of a qualified disposition, if, as of the date such action is brought, an action by a creditor with respect to such qualified disposition would be barred under this Section.”

Section 2. Amend Title 12, Section 3574, Delaware Code, by adding the following new sentence to subsection (b), subdivision (2):

“For purposes of this subdivision (2), it shall be presumed that the beneficiary, including a beneficiary who is also a transferor of the trust, did not act in bad faith merely by creating the trust or by accepting a distribution made in accordance with the terms of the trust.”

Section 3. This Act shall be effective upon enactment.

Approved July 20,1999