Section 1. Amend Subchapter IV, Chapter 35, Title 12, by deleting the title "Cemeteries" and substituting in lieu thereof the title "Trusts for Cemeteries and Other Noncharitable Purposes."

Section 2. Amend § 3551, Title 12, by designating the present section as subsection (a) and adding a new subsection (b) to read as follows:

“(b) A trust for the care and maintenance of any burial lot or cemetery plot, or for the construction or maintenance of any monument, marker or other additions thereto, is valid.”

Section 3. Amend Subchapter IV, Chapter 35, Title 12, by adding thereto a new Section 3555 to read as follows:

“§ 3555. Trust for Care of an Animal and Other Purposes.

(a) A trust for the care of one or more specific animals living at the settlor's death is valid. The trust terminates upon the death of all animals living at the settlor's death and covered by the terms of the trust.

(b) Subject to the provisions of subsection (a), a trust for a declared purpose that is not impossible of attainment is valid notwithstanding that the trust might not be deemed to be for charitable purposes.

(c) A trust authorized by subsection (a) or (b) shall not be invalid because it lacks an identifiable person as beneficiary if such trust would otherwise be valid if treated solely for purposes of this subsection (c) as a charitable trust.

(d) A trust authorized by subsection (a) or (b) may be enforced by a person appointed in the terms of the trust or, if there is no such person, by a person appointed by the Court of Chancery. A person who has an interest in the welfare of the animal or animals or in the declared purpose of the trust other than a general public interest may petition the Court of Chancery for an order that appoints a person to enforce the terms of the trust or to remove that person.

(e) Property of a trust authorized by this section may be applied only to its intended use. Upon the termination of the trust, any property of the trust remaining shall be distributed in accordance with the terms of the trust or, in the absence of such terms, as provided in Section 3592 of this Title.”

Section 4. Amend Subsection (a), Section 6603, Title 10, by adding thereto the following:

"except that if the structured settlement payment rights are held by a trustee, the Court of Chancery shall have exclusive jurisdiction over any application for authorization of a transfer of such rights."

Section 5. Amend Subsection (g), Section 6113, Title 12, by adding the following new sentence at the end thereof:

"This section shall be construed as pertaining to the administration of a trust and shall be available to any trust that is administered in Delaware under Delaware law or to any trust, regardless of its place of administration, whose governing instrument provides that Delaware law governs matters of construction or administration."

Section 6. Amend Subparagraph 4, Paragraph b, Subsection 10, Section 3570, Title 12, by adding the following phrase at the end thereof:

"and the transferor's right, at any time and from time to time by written instrument delivered to the trustee, to release such transferor's retained interest in such a trust, in whole or in part, in favor of a charitable organization that has or charitable organizations that have a succeeding beneficial interest in such trust."

Section 7. Amend Section 3536, Title 12, by adding new Subsection (e) to read as follows:

"(e) Notwithstanding subsection (a) of this section, a beneficiary of a charitable remainder unitrust or charitable remainder annuity trust as such terms are defined in § 664 of the Internal Revenue Code of 1986 [26 U.S.C. § 664] and any successor provision thereto shall have the right, at any time and from time to time by written instrument delivered to trustee, to release such beneficiary's retained interest in such a trust, in whole or in part, to a charitable organization that has or charitable organizations that have a succeeding beneficial interest in such trust."

Section 8. Sections 1 through 6 of this Act shall be effective on August 1, 2006, and shall apply to trusts whenever created. Section 7 of this Act shall be effective on August 1, 2006, and shall apply to releases made on or after the effective date.

SYNOPSIS

Section 1 of the Act changes the title of Subchapter IV of Chapter 35 of Title 12 to reflect that the subchapter has a broader scope than so-called cemetery trusts.

Section 2 of the Act validates trusts for the care and maintenance of any burial lot or cemetery plot or for the construction or maintenance of a burial monument, marker, or other memorial.

Section 3 of the Act validates trusts for pets or other animals. Such trusts are limited in duration to the lifetime of animals living at the settlor's death. Section 3 also validates so-called purpose trusts, that is, a trust created for a purpose that might not be considered to be of a type that would permit the trust to be treated as a charitable trust. Such a trust must have a declared purpose that is not impossible of attainment but need not have an identifiable person as beneficiary so long as the trust would be valid if it otherwise were treated as a charitable trust. Section 3 provides for the enforcement of so-called pet trusts and purpose trusts and for the disposition of the trust fund upon termination of such a trust.

Section 4 of the Act provides that jurisdiction over applications to transfer structured settlement rights held in trust be in the Court of Chancery as the court with longstanding jurisdiction over trusts.

Section 5 of the Act provides that a fiduciary's power to adjust pertains to the administration of the trust and is available to any trust administered under Delaware law.

Section 6 of the Act provides that a transferor's retention of a power to release such transferor's interest in a charitable remainder trust in favor of a charitable organization that holds a succeeding beneficial interest will not cause the trust to be other than an irrevocable trust.

Section 7 of the Act permits the beneficiary of a spendthrift trust that is a charitable remainder trust to release such beneficiary's unitrust or annuity trust interest in favor of a charitable organization that holds a succeeding beneficial interest.

Section 8 of the Act provides for effective dates.

Author: Senator DeLuca

SPONSOR:	Sen. DeLuca & Reps. Stone & Valihura
	Rep. M Marshall & Sen. Amick, Bunting