October 30, 2025

Reger Rizzo & Darnall LLP Wills, Trust, & Estate Practice Group Chair Joel S. Luber recently published Beneficiary Well-Being Trust – Panacea Or Panoply of Perplexities. This article offers valuable perspective on estate planning.

Over the next 10–15 years, an estimated $84 to $90 trillion in wealth will pass from the Silent Generation, Baby Boomers, and older Generation X to younger generations, primarily Millennials and Generation Z. While this unprecedented transfer of wealth offers enormous opportunity, it also raises critical questions for families and advisors: Are beneficiaries truly prepared to manage significant inheritances? Should they be informed about their status as trust beneficiaries, and if so, when and by whom?

Delaware’s 2024 Beneficiary Well-Being Trust statute (12 Del. Code §3345) offers a novel approach. For the first time, state law explicitly authorizes trustees to create programs designed to educate and support beneficiaries’ financial, emotional, and familial well-being. These programs can include seminars, workshops, personal coaching, family retreats, and even short-term university courses—all funded by the trust. The statute reflects a growing recognition that managing wealth is not only about preservation, but also about preparing heirs to handle it responsibly and thoughtfully.

This article explores the key provisions of the new law, including the trustee’s powers, compensation considerations, tax and fiduciary implications, and the tension between traditional “silent trusts” and mandated well-being programs. It also discusses practical planning strategies and issues advisors must consider when recommending a Beneficiary Well-Being Trust, particularly for families seeking to balance privacy, legacy, and beneficiary development.

Whether you are a trustee, advisor, or client navigating estate planning in Delaware or beyond, understanding the nuances of this groundbreaking statute is essential in preparing the next generation for the Great Wealth Transfer.

To read the full article, view “Beneficiary Well-Being Trust – Panacea Or Panoply of Perplexities.”