Delaware Code Title 12 Sec. 3541 – Administration of charitable trusts or noncharitable purpose trusts; …
(a) Notwithstanding any other provision of this Code or other law, a trust having any religious, charitable, scientific, literary or educational purpose (collectively, hereinafter referred to as a “charitable purpose”) or a noncharitable purpose shall not be modified to alter or eliminate such purpose except pursuant to § 3342 of this title or pursuant to this section. Subject to subsection (b) of this section, if a particular charitable purpose or noncharitable purpose becomes unlawful under the Constitution of this State or the United States or the trust would otherwise no longer serve any charitable or noncharitable purpose:
(1) The trust does not fail in whole or in part;
(2) The trust property does not revert to the trustor or the trustor’s successors in interest; and
(3) The Court of Chancery shall modify or terminate the trust and direct that the trust property be applied or distributed, in whole or in part, in a manner consistent with the trustor’s charitable or noncharitable purposes, whether or not such purposes be specific or general.
Terms Used In Delaware Code Title 12 Sec. 3541
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Court: means the Court of Chancery. See Delaware Code Title 12 Sec. 39A-101
- State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, a federally recognized Indian tribe, or any territory or insular possession subject to the jurisdiction of the United States. See Delaware Code Title 12 Sec. 39A-101
- Trustor: The person who makes or creates a trust. Also known as the grantor or settlor.
- United States: includes its territories and possessions and the District of Columbia. See Delaware Code Title 1 Sec. 302
(b) The power of the Court of Chancery to modify or terminate a charitable or noncharitable purpose trust, as provided in subsection (a) of this section, is in all cases subject to a contrary provision in the terms of the trust instrument, whether such contrary provision directs that the trust property be distributed to a charitable or noncharitable beneficiary.
(c) For purposes of this section, a “noncharitable purpose” is a purpose within the meaning of § 3555 or § 3556 of this title.
62 Del. Laws, c. 131, § ?1; 70 Del Laws, c. 186,, § ?1; 72 Del. Laws, c. 388, § ?8; 76 Del. Laws, c. 90, § ?6; 76 Del. Laws, c. 254, § ?10; 81 Del. Laws, c. 149, § 2;