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2006 Amendments to the Delaware Statutory Trust Act

The Delaware State Legislature recently enacted a series of amendments to the Delaware Statutory Trust Act, 12 Del. C. §§ 3801, et seq. (the "Act"). The amendments (the “2006 Amendments”) are included in House Bill No. 445, which was enacted on July 10, 2006 and will become effective on August 1, 2006. The summary below focuses on some of the more interesting aspects of the 2006 Amendments. Perhaps the most significant amendments are those that clarify that the default fiduciary duties of trustees and other persons may be expanded, restricted or eliminated by provisions in the governing instrument of the trust (though the implied contractual covenant of good faith and fair dealing cannot be eliminated). These and certain other changes included in the 2006 Amendments are analogous to recent amendments to the Delaware Limited Liability Company Act, the Delaware Revised Uniform Limited Partnership Act and the Delaware Revised Uniform Partnership Act. In addition to the more significant changes summarized below, the 2006 Amendments also contain some clarifications and conforming changes to the Act.

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