Notice of Trust to Beneficiaries (Delaware — 12 Del. C. §§ 3303, 3339, 3585)

NOTICE OF TRUST TO BENEFICIARIES

Pursuant to 12 Del. C. Chapter 35 (Delaware Trust Act)

I. IDENTIFICATION OF NOTICE

II. IDENTIFICATION OF SETTLOR AND TRUST

Name of Settlor(s) / Trustor(s): [________________________________]

Date of Death of Deceased Settlor (if applicable): [__/__/____]

Name of Trust: [________________________________]

Date of Original Trust Instrument: [__/__/____]

Trust Tax ID / EIN (last 4): [XXX-XX-________]

Type of Trust:

☐ Revocable inter vivos trust (now irrevocable upon settlor death)
☐ Irrevocable inter vivos trust
☐ Testamentary trust
☐ Qualified disposition trust under 12 Del. C. § 3570 (Delaware DAPT)
☐ Dynasty / generation-skipping trust
☐ Special needs trust
☐ Other: [____________]

Dates of All Amendments, Restatements, and Modifications:

☐ There have been no amendments, restatements, or modifications to the Trust.

III. TRUSTEE CONTACT INFORMATION

IV. PRINCIPAL PLACE OF ADMINISTRATION

The principal place of administration of the Trust is located in the State of Delaware at:

Street Address: [________________________________]

City: [____________________] County: ☐ New Castle ☐ Kent ☐ Sussex ZIP: [__________]

V. RECIPIENT(S) OF THIS NOTICE

This Notice is being served upon the following person(s):

VI. INFORMATIONAL RIGHTS UNDER THE GOVERNING INSTRUMENT AND 12 DEL. C. § 3303

Select the option that accurately reflects the terms of the Trust:

☐ Default Informational Duties. The governing instrument does not restrict the beneficiary's right to be informed. The Trustee will furnish reports and respond to reasonable requests for information in accordance with the governing instrument and applicable law.

☐ Silent Trust — Full Restriction (§ 3303(c)). The governing instrument restricts or eliminates the right of the recipient beneficiary to be informed of the beneficiary's interest in the Trust for the period stated in the instrument. During the silent period, the Trustee will provide reports and information to the Designated Representative identified in Section VII below, who shall represent and bind the beneficiary for purposes of any judicial proceeding and any nonjudicial matter under 12 Del. C. §§ 3303(d) and 3339.

☐ Silent Trust — Partial Restriction. The governing instrument restricts the right of the recipient beneficiary to be informed only as to the following matters: [____________________]. As to all other matters, default informational duties apply.

☐ Termination of Silent Period. The silent period under the governing instrument has ended on [__/__/____] because: ☐ the beneficiary attained the age specified in the instrument; ☐ the time period specified in the instrument has elapsed; ☐ the settlor's death; ☐ trustee discretion under the instrument; ☐ other: [____________].

Scope of Information Restriction (if any): [________________________________]

VII. DESIGNATED REPRESENTATIVE (12 DEL. C. § 3339)

☐ Not applicable — no Designated Representative is serving.

☐ The following person is serving as Designated Representative under 12 Del. C. § 3339:

VIII. SPENDTHRIFT AND ASSET PROTECTION PROVISIONS

☐ The Trust contains a spendthrift clause enforceable under 12 Del. C. § 3536.

☐ The Trust is a qualified disposition trust ("DAPT") under 12 Del. C. § 3570 et seq. The qualified trustee is [____________________]. Any creditor claim under 12 Del. C. § 3572 is subject to the limitation periods stated therein.

☐ Neither a spendthrift clause nor a qualified disposition is asserted.

IX. RIGHT TO REQUEST A COPY OF THE GOVERNING INSTRUMENT

If the governing instrument does not restrict disclosure to you: Upon reasonable written request to the Trustee at the address in Section III, the Trustee will furnish to you the portions of the governing instrument relevant to your interest in the Trust, subject to any limitations imposed by the instrument and 12 Del. C. § 3303.

If you are represented by a Designated Representative during a silent period: Requests for information or a copy of the governing instrument should be directed to the Designated Representative identified in Section VII, who will receive and act upon such requests on your behalf.

X. TRUSTEE REPORTING AND LIMITATION OF ACTIONS — 12 DEL. C. § 3585

NOTICE OF LIMITATION OF ACTIONS UNDER 12 DEL. C. § 3585

Pursuant to 12 Del. C. § 3585, a person may initiate a judicial proceeding against the Trustee for breach of trust or other claim only until the first to occur of:

(1) One (1) year after the date the person was sent a report that adequately disclosed the facts constituting the claim (or a longer period if so provided by the governing instrument);

(2) One hundred twenty (120) days after the date a resigning, removed, or otherwise outgoing Trustee sent a report that (a) notified the recipient of the Trustee's cessation, (b) adequately disclosed the facts constituting the claim, and (c) adequately disclosed the time limit under § 3585; or

(3) The date the proceeding was otherwise precluded by adjudication, release, consent, limitation, or pursuant to the terms of the governing instrument.

A backstop five (5) year limitations period under 12 Del. C. § 3585(b) applies in the absence of a qualifying report. The general three (3) year personal-action period under 10 Del. C. § 8106 may apply to claims not adequately disclosed in a § 3585-qualifying report, subject to the discovery rule and any fiduciary tolling.

The Trustee will furnish periodic reports (including, where applicable, an Annual Trust Accounting) to each qualified recipient — or to the Designated Representative under § 3303(e) and § 3339 — in accordance with the governing instrument and applicable law.

XI. COURT OF CHANCERY JURISDICTION (10 DEL. C. § 341)

The Delaware Court of Chancery has general equity jurisdiction over the administration of the Trust under 10 Del. C. § 341. Any judicial proceeding relating to the Trust — including a petition to construe the Trust, to compel an accounting, to surcharge or remove the Trustee, to settle the Trustee's account, or to obtain instructions — will be filed in the Court of Chancery for the county of the principal place of administration identified in Section IV.

Nonjudicial settlement agreements under 12 Del. C. § 3338 are available to interested persons (including Designated Representatives under § 3339 and virtual representatives under § 3547) as an alternative to Court of Chancery proceedings for many administrative matters.

XII. TRUSTEE EXECUTION AND VERIFICATION

I, the undersigned Trustee, certify that the foregoing is true and correct to the best of my knowledge and that this Notice has been served on the persons identified in Section V by the methods identified in Section XIII below, in accordance with the governing instrument and 12 Del. C. Chapter 35.

Executed on [__/__/____] at [____________________], Delaware.

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

XIII. PROOF OF SERVICE

I, the undersigned, declare that I am over the age of 18 years and not a party to the within matter. On the date stated above, I served the foregoing NOTICE OF TRUST TO BENEFICIARIES on each recipient identified in Section V by the method indicated above, addressed to each such recipient at the address set forth in Section V.

I declare under penalty of perjury under the laws of the State of Delaware that the foregoing is true and correct.

Executed on [__/__/____] at [____________________].

Signature: [________________________________]

Print Name: [________________________________]

SOURCES AND REFERENCES

• 12 Del. C. § 3303 — https://delcode.delaware.gov/title12/c035/sc01/index.html
• 12 Del. C. § 3338 (Nonjudicial Settlement Agreements) — https://delcode.delaware.gov/title12/c035/index.html
• 12 Del. C. § 3339 (Designated Representatives) — https://delcode.delaware.gov/title12/c033/index.html
• 12 Del. C. § 3547 (Virtual Representation) — https://delcode.delaware.gov/title12/c035/index.html
• 12 Del. C. § 3570 (Qualified Dispositions in Trust Act) — https://delcode.delaware.gov/title12/c035/sc06/index.html
• 12 Del. C. § 3585 (Limitation of Action Against Trustee Following Report) — https://delcode.delaware.gov/title12/c035/sc07/index.html
• 10 Del. C. § 341 (Court of Chancery General Equity Jurisdiction) — https://delcode.delaware.gov/title10/c005/sc02/index.html
• 12 Del. C. § 3536 (Spendthrift Provisions) — https://delcode.delaware.gov/title12/c035/index.html
• Morris Nichols, "Designated Representatives: Sending Trusted Individuals to the Front Lines" — https://www.morrisnichols.com/insights-designated-representatives-sending-trusted-individuals-to-the-front-lines
• Young Conaway / Bessemer, "Delaware Silent Trusts," Delaware Banker (Spring 2016).