Senate Bill 195 Summary

• Expands exemptions from creditor claims to include qualified tuition programs (§ 529) and qualified ABLE accounts (§ 529A) established under federal law, applying the same protections previously limited to Delaware-specific plans, with limitations on recently contributed funds.

• Clarifies fiduciary definitions and powers in Delaware trust law by establishing separate categories for "fiduciaries" and "nonfiduciaries," expanding who may serve as trust advisers, protectors, and designated representatives, and specifying their respective duties and limitations.

• Reduces the statute of limitations for claims against trustees from two years to one year after receiving a trustee's report (unless the trust document specifies a longer period), aligning Delaware law with the Uniform Trust Code.

• Permits modification of irrevocable trusts by consent of all trustees, fiduciaries, and beneficiaries to add provisions that could have been included at creation, and allows beneficiaries to release contingent beneficial interests to accelerate succeeding interests.

• Clarifies virtual representation rules for trusts by expanding who may represent unborn, incapacitated, and contingent beneficiaries, and allows holders of broad powers of appointment to represent takers in default absent conflicts of interest.