For decades, estate planning has been dominated by a singular obsession: minimizing tax burdens. The Trusts that were used for this planning were focused on the investment and distribution of the remaining estate. This "distribution-focused" approach, born in the shadow of rising estate taxes, turned trusts into tools for transferring wealth with as little loss to the IRS as possible. But the tide is turning. Today, a growing number of families—and the advisors who serve them—are looking beyond mere distribution to a more holistic goal: enhancing the lives of beneficiaries. This shift isn’t just a trend; it’s a transformation, and it’s been codified into law with the groundbreaking 2024 Delaware Trust Act.
At the heart of this legislation lies the Beneficiary Well-Being Trust—a provision that reimagines trusts as vehicles not just for wealth preservation, but for preparing heirs to thrive. Enacted in 2024, this Act marks a pivotal moment in trust law, offering trustees new powers to support beneficiaries with things like education, mental health resources, and family legacy training. It’s a bold step forward, and it’s not just for Delaware. The concepts embedded in this law can be applied to trusts across all states, making it a game-changer for advisors everywhere.
This article has a threefold mission: to unpack the provisions of the 2024 Delaware Trust Act for professional advisors (including trustees), to demonstrate how its principles extend far beyond Delaware’s borders, and to invite you to training with the Heritage Institute to harness these tools for your practice. The thesis is simple yet powerful: the 2024 Delaware Trust Act offers a transformative opportunity to meet your clients’ deepest needs—preparing their heirs for wealth, not just passing it on— and it’s applicable nationwide. With the right training, you can unlock its full potential, elevating your business while elevating beneficiary well-being. The future of estate planning is here - let’s explore how you can lead it.
Historical Evolution of Estate Planning
Estate planning wasn’t always about dodging taxes. Before 1916, when the federal estate tax first took root in the United States, trusts and estate strategies were squarely "enhancement-focused." The goal was to nurture family legacies and foster beneficiary growth—think of multigenerational wealth as a tool to empower heirs, not just enrich them. Families used trusts to pass down values, skills, and a sense of purpose alongside their fortunes. It was about building something lasting, not just handing over a check.
That all changed with the rise of estate taxes. In 1916, a modest 10% tax was levied on estates exceeding $50 million—equivalent to over $1.4 billion today—initially as a revenue measure. But war and economic upheaval soon escalated the stakes. During World War I, the rate climbed to 25% to fund the effort, and by 1924, it hit 40%. The Great Depression pushed it to 45% in 1932, and World War II saw the top rate soar to a staggering 77% in 1941 for estates over $10 million. That 77% peak held until 1976, cementing a seismic shift in estate planning. As tax burdens ballooned, the focus pivoted from enhancement to distribution. Trusts became less about preparing beneficiaries and more about shielding wealth from Uncle Sam. Tax mitigation wasn’t just a priority—it became the priority.
Yet history has a way of circling back. In recent years, a quiet revolution has been brewing among families and advisors alike. The relentless focus on tax-driven, "distribution-focused" planning has begun to give way to a renewed emphasis on enhancement—on trusts that don’t just deliver wealth but equip beneficiaries to handle it. This reemergence
isn’t just philosophical; it’s practical, driven by families who want their heirs to thrive, not just survive. The 2024 Delaware Trust Act is the culmination of this shift, codifying "enhancement-focused" principles into law with its Beneficiary Well-Being Trust provisions. It’s a return to estate planning’s roots, updated for a modern world—one where preparing beneficiaries is as critical as preserving assets.
“The past offers lessons, and the future is listening.”
The 2024 Delaware Trust Act: Key Provisions
The 2024 Delaware Trust Act isn’t just an update to trust law—it’s a redefinition of what trusts can do. At its core are the Beneficiary Well-Being Trust provisions, introduced through Section 3345 and a new paragraph (32) added to §3325 of Title 12. These changes mark a bold departure from tradition, empowering trustees to go beyond distributing wealth and instead focus on preparing beneficiaries for it. For professionals who advise wealthy clients, this is a toolkit worth understanding, because it’s reshaping how trusts can serve families.
The Act’s standout feature is its statutory authority for trustees to hire, retain, and compensate providers of programs and education tailored to beneficiary needs. This isn’t about handing out checks—it’s about building skills and resilience. The law spells out a menu of services trustees must offer: wealth management training to teach beneficiaries how to handle their inheritance responsibly; mental health support to address the emotional toll wealth can bring; education on family history and legacy to anchor heirs in their roots; family governance training to foster unity across generations; and philanthropy guidance to instill a sense of purpose. These aren’t optional extras—they’re now baked into the trust’s purpose, authorized explicitly by statute.
Flexibility is key. Trustees can provide these services themselves or tap third parties—think financial educators, therapists, or governance experts—paying them from the trust estate.
Crucially, this doesn’t cut into the trustee’s regular compensation, ensuring they’re not penalized for prioritizing beneficiary well-being. Even better, the Act’s opt-in structure means these provisions aren’t limited to new trusts. Existing Delaware trusts can adopt them too, making this a retrofit for the future as much as a fresh start.
The purpose here is transformative: to shift trusts from mere vehicles of wealth distribution to active tools for beneficiary preparation and well-being. For too long, trusts have been seen as ATMs— dispensing funds with little thought to the recipient’s readiness. The 2024 Act flips that script. It recognizes that wealth without preparation can harm as much as it helps, and it gives trustees the legal backing to act as mentors, not just accountants. Delaware has set a new standard, one that prioritizes the human side of inheritance—equipping beneficiaries to thrive, not just survive. For advisors, this isn’t just a law to note; it’s a framework to master, because its implications stretch far beyond state lines.
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Rod Zeeb is the CEO & Founder of The Heritage Institute and Founder and Principal in Genacy Group.
Lori Coonen is CLO at The Heritage Institute and a Principal in Genacy Group. You may contact them at www.theheritageinstitute.com or www.genacygroup.com.