Delaware Court of Chancery Issues Two Important Trust Opinions
The Delaware Court of Chancery (the “Court”) recently issued two significant opinions, one involving Delaware asset protection trusts and the other involving a Delaware directed trust. As a courtesy to our clients and friends, below please find our analysis of both decisions.
The opinion in TrustCo Bank v. Susan M. Mathews, C.A. No. 8374-VCP, V.C. Parsons (Del. Ch. Jan. 22, 2015) provides insight into how the Court will determine and apply the applicable statute of limitations period for alleged fraudulent transfers to a Delaware asset protection trust.
Click here to download the full Morris Nichols analysis of the TrustCo opinion.
In Mennen v. Wilmington Trust Company, George Jeffrey Mennen and Owen J. Roberts as Trustees, C.A. No. 8432-ML, Master LeGrow (Del. Ch. Dec. 8, 2014) (Master’s Final Report), the beneficiaries of a directed trust sued the trustee and direction adviser claiming damages in excess of $100 million for breaches of fiduciary duties in connection with the trust’s investments. This is the first decision in which the Court held an “adviser” within the meaning of 12 Del. C. § 3313 liable for breach of fiduciary duty. In this important decision, the Court contrasted willful misconduct and bad faith standards of fiduciary liability and analyzed the application of virtual representation principles to the statute of limitations defense.
Click here to download the full Morris Nichols analysis of the Mennen opinion.