5 Del. C. § 797A: Definitions [For application of this section, see 85 Del. Laws, c. 346, § 9].

As used in this subchapter:

(1) “Adviser” means a person considered to be an adviser under § 3313 of Title 12.

(2) “Affiliate” means a family affiliate of any family member and any person controlling, controlled by or under common control with the family trust company.

(3) “Charitable” means having as 1 or more of its purposes or activities, or both, that would qualify an organization or trust as exempt from federal income taxation under 26 U.S.C. § 501(c)(1) through (c)(7) of the Internal Revenue Code, whether or not the organization or trust actually avails itself of such exemption or obtains administrative confirmation thereof.

(4) “Collateral kinship” means a relationship that is not lineal but stems from a common ancestor. Degrees of collateral kinship are calculated by adding the number of steps from the designated relative (or other specified person) through the common ancestor to the family member.

(5) “Confidential information” means any of the following:

a. The names of stockholders, members, partners or other owners or managers, employees, trustees, other fiduciaries, advisers or officers.

b. Ownership information.

c. Capital contributions.

d. Addresses and other contact information.

e. Business affiliations.

f. Information obtained from the family trust company or any of its directors, officers, employees or stockholders.

g. Findings of the Commissioner through any examination or investigation of the family trust company.

h. Any information required to be reported to or filed with the Commissioner in respect of the family trust company or its directors, officers, employees or stockholders, or of any accounts administered by the family trust company.

i. Any information that qualifies as any person’s “nonpublic personal information” under 15 U.S.C. § 6809 and the regulations adopted pursuant thereto.

j. Any information or agreement relating to any merger, consolidation, conversion, domestication, transfer, dividend, sale or transfer of assets or stock or other equity interests or any other similar reorganization or transaction.

k. Any information or agreement relating to any relationship with an individual trustee, other fiduciary or adviser for services from the family trust company or with an outside services provider to the family trust company.

l. Any other nonpublic information that, in the judgment of the Commissioner, is of a similar nature to any of the foregoing or could be used in connection with an act of bribery, extortion, identity theft or terrorism involving a family member or any owner, management personnel or employee or other representative of a family trust company.

(6) “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise.

(7) a. “Designated relative” means either a living or deceased person or a living or deceased person and their living or deceased spouse, surviving spouse, or former spouse, in each case designated by 1 of the following:

1. The application for a certificate of authority to establish a family trust company.

2. The most recent filing with the Commissioner pursuant to § 797J of this title.

b. A living or deceased person and their living or deceased spouse, surviving spouse, or former spouse, if designated as a designated relative, shall count as 1 designated relative.

(8) “Family affiliate” means a corporation, partnership (whether general or limited), limited liability company, trust (including a common law trust, business trust, statutory trust, purpose trust, voting trust or any other form of trust), association, or any other organization or entity with respect to which 1 or more family members possess control.

(9) “Family member” includes any of the following:

a. Each designated relative, and their spouse, surviving spouse, or former spouse.

b. Any person within the tenth degree of lineal descent from a designated relative.

c. Any person within the tenth degree of collateral kinship to a designated relative.

d. Any individual who is a beneficiary (whether current, contingent, or residual), or a remainderman, legatee or devisee under a will or trust created or funded (directly or indirectly, in whole or in part) by a family member identified in paragraphs (8)a. through c. of this section, and the spouse, surviving spouse, former spouse, and other immediate family of that beneficiary, remainderman, legatee or devisee.

e. The spouse and any surviving or former spouse of any person identified in paragraphs (9)a. through d. of this section.

f. Any person who is within the fifth degree of lineal kinship of a spouse, surviving spouse, or former spouse identified in paragraph (9)e. of this section who is not a designated relative.

g. Any family affiliate and the current or former officers, managers, directors, trustees, other fiduciaries, advisers, shareholders, partners or members of that family affiliate and their immediate families.

h. A trust established or funded (directly or indirectly or in whole or in part) by 1 or more family members, either individually or jointly, with any individual trustee, fiduciary, adviser, protector or other individual assisting with the administration of that trust.

i. A trust established or funded (directly or indirectly, in whole or in part) by a person who is not a family member if any of the following apply:

1. The majority of current beneficiaries of that trust are family members.

2. The majority of the current, noncharitable beneficiaries of that trust are family members.

3. If all current beneficiaries are nonfamily member charities, a majority of the beneficiaries who succeed to the primary nonfamily member charitable beneficiaries are family members.

j. The estate of a family member and the estates of current or former officers, managers, directors, trustees, other fiduciaries, advisers, shareholders, partners, or members of a family affiliate and their immediate family.

k. The estate of a person who is not a family member if the majority of the beneficiaries of that estate, determined by number of beneficiaries or monetary value of their bequests, are family members.

l. An individual retirement account, qualified plan account or other deferred compensation or retirement account of a family member who is an individual and any beneficiary of such an account.

m. A trust of which a family member is a trustee, other fiduciary or adviser, an estate of which a family member is an executor, conservator or similar fiduciary, and a person for whom a family member is a legal guardian, custodian, conservator or similar fiduciary.

n. A charitable foundation, corporation, trust, or other entity that meets any of the following:

1. It is established by 1 or more family members and would qualify as any of the following:

A. A “private foundation” as defined in 26 U.S.C. § 501(c)(3) of the Internal Revenue Code and 26 C.F.R. § 1.509(a)-1 of the Treasury Regulations, including a private “operating foundation” as defined in 26 U.S.C. § 4942 and 26 C.F.R. § 53.4942(b)-1 of the Treasury Regulations.

B. A supporting organization as defined in 26 U.S.C. § 509(a)(3) of the Internal Revenue Code, regardless of whether the entity actually avails itself of the exemption or obtains administrative confirmation.

C. An organization described in 26 U.S.C. § 501(c)(4) of the Internal Revenue Code.

2. It is primarily funded, directly or indirectly, by 1 or more family members.

o. Any other individual whom the family trust company requests to be treated as a family member and whom the Commissioner determines has a close, family-like relationship with the family.

(10) “Family trust company” means a corporation or limited liability company that meets all of the following:

a. Acts or proposes to act as a fiduciary.

b. Is organized under the laws of this State as a family trust company pursuant to this subchapter.

c. Does not transact trust company business with, solicit trust company business from, or propose to or act as a fiduciary for, the general public or any person who is not a family member.

d. Has 1 designated relative.

(11) “Foreign family trust company” means a trust company that is organized as a corporation or a limited liability company under the laws of, and is supervised and regulated by the principal banking regulator of, another state, the District of Columbia, or a territory or possession of the United States, and that satisfies the definition of a “family trust company” under paragraph (10) of this section, excluding the requirement of paragraph (10)b. of this section.

(12) “Immediate family” with respect to an individual, means any of the following:

a. That individual’s:

1. Spouse.

2. Parents and step-parents.

3. Any person within the second degree of lineal descent of that individual

b. The spouse of any individual listed under paragraphs (12)a.2. and a.3. of this section.

c. The parents and step-parents of any individual listed under paragraph (12)a. or b. of this section.

d. Any person within the second degree of lineal descent of any of the individuals listed under paragraphs (12)a. through c. of this section.

(13) a. “Lineal kinship” means a family member who is in the direct line of ascent or descent from a designated relative. A “descendant” of a person includes any of the following:

1. Any natural child of that person.

2. Any individual legally adopted by that person.

3. Any stepchild or former stepchild of that person.

4. A foster child or former foster child of that person.

5. Any individual that was a minor when that person became the legal guardian of that individual.

6. Any child of that person’s spouse. For purposes of this paragraph (13), “any child” includes, a natural child, adopted child, or stepchild.

b. Degrees of lineal kinship are calculated by adding the number of steps from the designated relative (or other specified person) directly through each person to the family member.

(14) “Loans” means as defined in § 773 of this title.

(15) “Principal place of business” means a physical office of a family trust company in this State, which office may be located within the premises of a bank, trust company, or other outside services provider that is providing services to the family trust company as permitted under paragraph (15)c.2. of this section, at which the family trust company does all of the following:

a. Maintains original or true copies of all material business records and accounts of the family trust company that are accessible to and available for examination by the Commissioner.

b. Conducts operations in this State through its directors, officers, or employees, or through a bank, trust company, or other outside services provider referred to in paragraph (15)c.2. of this section, as necessary to do all of the following:

1. Accept and administer trusts in this State.

2. Meet the applicable legal standards to permit the laws of this State to govern the administration of trusts for which the family trust company acts as fiduciary, to the extent that the laws of this State are intended to govern the administration of the trusts.

3. Hold confidential private meetings.

c. Maintains at least 1 trust officer who is an employee of the family trust company or is provided through an arrangement under paragraph (15)c.2. of this section. The trust officer must have training and experience in accepting and administering trusts that is satisfactory to the Commissioner. The family trust company must also meet either of the following:

1. Maintain additional employees the Commissioner deems necessary to perform the functions required by paragraph (15)b. of this section.

2. Obtain the use of additional qualified personnel and administrative services necessary to perform the functions required by paragraph (15)b. of this section through an arrangement with either of the following:

A. A bank or trust company that maintains its principal place of business in this State, is authorized under the laws of this State to exercise fiduciary powers in this State and is subject to the supervision of the Commissioner or the Office of the Comptroller of the Currency.

B. An outside services provider satisfactory to the Commissioner.

d. Meets other reasonable requirements the Commissioner imposes by regulation or order upon a finding that the requirement is necessary to protect beneficiaries of trusts administered by the family trust company.

(16) “Spouse” means a spouse or spousal equivalent.

(17) “Trust company powers” means the powers specified in § 773(4) of this title, including any regulations, guidance, and interpretations of the Commissioner regarding the powers of trust companies.