HOUSE BILL NO. 194
AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO THE RULE AGAINST PERPETUITIES AND POWERS OF APPOINTMENT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :
Section 1. Amend Chapter 5, Title 25 of the Delaware Code, by adding the following new phrase to the end of the chapter title:
"; RULE AGAINST ACCUMULATIONS".
Section 2. Amend Chapter 5, Title 25 of the Delaware Code, by adding thereto a new section to read as follows:
"§505. Exercise of powers of appointment.
If the instrument creating a power of appointment, whether limited or general, does not expressly manifest a contrary intent of the donor, the donee of such a power, in addition to exercising the power in any other manner permitted by law and the instrument creating the power, may effectively appoint all or a portion of the assets, subject to such power to a trustee or trustees for the benefit of one or more objects of the power and may, in addition, create in an object of the power a general power of appointment, exercisable during life or at death, over assets subject to the original power or a limited power of appointment, exercisable during life or at death, to appoint such assets among objects all of whom are objects of the original power.".
Section 3. Amend Chapter 5, Title 25 of the Delaware Code, by adding thereto a new section to read as follows:
"§506. Rule against accumulations.
No provision directing or authorizing accumulation of trust income shall be invalid.".
Section 4. Sections 1 and 2 of this Act become effective upon the enactment of this Act. Section 2 of this Act applies to the exercise of powers of appointment whenever created. Section 3 of this Act applies to trust instruments becoming irrevocable on or after July 3, 1986.
Approved June 30, 2003