Vice Chancellor adopts Master’s “well-reasoned report” finding that the Beneficiaries of a Trust Cannot Circumvent the Spendthrift Clause of the Co-defendant Trustee’s Own Separate Trust

Mennen, et al. v. Wilmington Trust Co., et al. C.A. No. 8432-VCL (February 27, 2017)

       Back on April 24, 2015, Master in Chancery LeGrow (now Superior Court Judge LeGrow) issued her final report in this matter. We wrote about that report at http://www.gfmlaw.com/blog/her-final-report-master-legrow-adopts-ruling-.... In short, then-Master LeGrow found that the court could not pierce the spendthrift clause of the co-defendant trustee’s separate trust notwithstanding the trustee’s repeated wrongdoings.

       In the Delaware Court of Chancery, there is a procedure for Vice Chancellors to review master’s reports if “exceptions” are taken by one or both of the parties. That review occurs de novo. After some procedural back and forth between Chancery and the Supreme Court in the present case, Vice Chancellor Laster issued a February 27, 2017 report completely and wholly adopting the April 24, 2015 final report as written. Vice Chancellor Laster’s report is attached below as a PDF.