The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment.Delaware has a state income tax, structured as a progressive tax on income.
Tax rates range from 2.2% - 6.6%.
Delaware does not impose an inheritance tax.
Delaware does not impose an estate tax.
Delaware does not impose a GST tax.
Delaware does not impose a gift tax.
The minimum age of a person competent to make a will is 18.
The number of witnesses necessary to execute a will is two.
The original custodial gift may be a life insurance policy or annuity contract.
Custodial property may be invested in or used to pay premiums on (1) a policy on the minor's life if the minor's estate is the sole beneficiary, or (2) a policy on a third party in whom the minor has an insurable interest, if the minor or the custodian is the irrevocable beneficiary.
The custodial arrangement terminates when:
The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment.
The minor child reaches age 18 in regard to other custodial transfers.
The minor child dies.
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Each state describes its own distribution pattern of how property passes to a decedent's spouse, children, parents and siblings. If no such individuals are living, state laws specify other takers among more distant ancestors before awarding property to the state through "escheat" provisions. We do not trace devolution of property beyond those noted above, but cite appropriate statutes for those interested in additional detail.
Many states refer to their distribution regime by simply stating that the heirs of predeceased individuals take "by representation." We use only the statutory verbiage, but may cite other statutory guidance when it exists.
States vary in the way they refer to descendants, using such terms as "issue" or simply children or grandchildren. We use the term "descendant," unless usage of different term adds clarity.
Some states address situations where misconduct or abuse causes forfeiture of a right to receive a share of the estate. Those interested in this information should see the state statutes.
The estate goes to the surviving spouse, as follows:
If there are no surviving descendants or parents—100% of the estate
If parent(s) survive but there is no surviving descendant—the first $50,000 of the personal estate, plus 50% of the balance of the personal estate, plus a life estate in the real estate
If surviving descendants are all also descendants of the spouse—the first $50,000 of the personal estate, plus 50% of the balance of the personal estate, plus a life estate in the real estate
If there are surviving descendants, at least one of whom is not also a descendant of the spouse—50% of the personal estate, plus a life estate in the real estate
If there is no surviving spouse, or if a portion of the estate does not go to the spouse:
100% to the descendants per stirpes (see 12 Del. C. §503(5)—any property passing to two or more persons is taken as tenants in common)
If there is no surviving spouse or descendant:
100% to surviving parent or parents equally (see 12 Del. C. §503(5)—any property passing to two or more persons is taken as tenants in common)
If there is no surviving spouse, descendant or parent:
100% of the estate goes to siblings and the descendants of each deceased sibling, per stirpes (see 12 Del. C. §503(5)—any property passing to two or more persons is taken as tenants in common)
If none of the above:
Intestacy laws outline further distribution steps to next of kin and related individuals. See 12 Del. C. §503(4).
If no legally described recipient can be found, estate assets go to the state of Delaware.
Click here for more information on intestacy.
Non-qualified Annuities: Exempt from creditors.
Life Insurance Proceeds: Exempt from creditors.
Digital Assets: Delaware follows the Fiduciary Access to Digital Assets and Digital Accounts Act to ensure that testators can retain control of their digital property and plan for its ultimate disposition.
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