Delaware allows approved family trust companies once implementation begins

Families may apply to the State Bank Commissioner for approval to operate a family trust company. Each company serves clients linked to one named relative, who may include that person's spouse. Eligible clients include extended relatives and connected trusts, businesses, and charities. Companies cannot serve or advertise to the general public. Each company must have one Delaware office, records available for state review, and a trained trust officer. Approved outside providers may supply staff. Covered powers to direct trust assets to company officers, directors, or shareholders may benefit them only for health, education, support, or maintenance. The law took effect July 13, 2026. Implementation starts when the State Bank Commissioner publishes notice of final implementing rules, or July 13, 2027, whichever comes first.

Family trust companies must maintain company funds, pay license fees, and carry insurance. These requirements cover Delaware family trust companies. The minimum is $250,000 in capital plus at least $125,000 in surplus. The Commissioner may require more to protect families or address unsafe operations; amounts above $1 million require extraordinary circumstances. Companies must carry at least $1 million in coverage against dishonesty by directors, officers, and employees. Those subject to minimum capital rules must also carry liability and professional-error insurance of at least $5 million per occurrence. The Commissioner may examine companies and charge examination fees. Examination rules must reflect their risks, and the Commissioner must order violations stopped. These rules apply when implementation begins. Annual license fees are due on or before January 30, except in the year the initial license fee was paid.

The State Bank Commissioner must keep company applications and private family records confidential, with limited exceptions. Protection covers applications, examination records, and private information about companies and family members. Authorized staff and agencies overseeing the company may receive records. Other recipients require a finding that the public interest outweighs privacy. Recipients must agree in writing to keep records confidential. Sharing with the general public or competitors is prohibited. Affected people generally receive 10 days' notice before public-interest disclosure. They may object and request a hearing that delays disclosure, unless law or a court order requires otherwise. These protections apply when implementation begins.

Eligible trust companies may apply to convert into or out of the family trust company form. Regulated family trust companies from other U.S. jurisdictions and limited purpose trust companies may become Delaware family trust companies. Family trust companies may become limited purpose trust companies. Applicants must obtain required owner approvals, follow applicable company procedures, and show they meet the rules for the resulting company type. Commissioner approval is required, but the conversion is treated as approved if the Commissioner takes no action within 30 days after receiving a complete application. These conversion procedures apply when implementation begins.

Family trust companies need not file their trustee fee schedules with the Register in Chancery, the court's filing office. The exceptions cover family trust companies established under this law. Companies that do not file are also exempt from the linked requirement to send the filed schedule to creators of revocable trusts and current income beneficiaries of other trusts. The rule setting compensation through a filed schedule does not apply to family trust companies that do not file one. These exceptions apply when implementation begins.