Delaware Court of Chancery Bars Trust Beneficiary’s Claims Based on Unclean Hands and Informed Written Consent
In The Matter Of The Niki and Darren Irrevocable Trust and the N and D Delaware Irrevocable Trust, C.A. No. 2019-0302-BWD (November 19, 2025)
On November 19, 2025, the Delaware Court of Chancery issued an opinion in In re Niki and Darren Irrevocable Trust. The opinion resolved some issues stemming from an attempted decanting of assets from a California trust into a Delaware trust. The court held that the beneficiary’s claims for breach of fiduciary duty and civil conspiracy were barred by the doctrine of unclean hands because the beneficiary had actually facilitated and supported the attempted decanting at issue.
In what may be of particular interest to trust practitioners, the court also found—as an independent and alternative basis for dismissal—that the beneficiary’s informed and voluntary written consent to the “decanting” barred his claims because he knew of the same material facts which the trustees knew or should have known and was not improperly induced to consent. (See footnote 30 of the Opinion, citing 12 Del. C. § 3588).
Note: This law firm is counsel to one of the parties in this case. Also, this case remains pending in the trial court.
This blog entry was authored by Christina Smith.
