(a) In the case of a fiduciary that retains counsel in connection with any matter whether or not related to any claim that has been or might be asserted against the fiduciary and pays such counsel's fees and related expenses entirely from such fiduciary's own funds, any communications with such counsel shall be deemed to be within the attorney-client privilege.
(b) Except as otherwise provided in the governing instrument, a fiduciary may retain counsel in connection with any matter that is or that might reasonably be believed to be 1 that will become the subject of or related to a claim against the fiduciary, and the payment of counsel fees and related expenses from the fund with respect to which the fiduciary acts as such shall not cause the fiduciary to waive or to be deemed to have waived any right or privilege including, without limitation, the attorney-client privilege even if the communications with counsel had the effect of guiding the fiduciary in the performance of fiduciary duties. However, in the event that the fiduciary is determined by a court to have breached a fiduciary duty related to such matter, the court may, in its discretion, deny such fiduciary the right to have all or some part of the fiduciary's counsel fees paid from such fund and may require the fiduciary to reimburse any such fees and expenses that have been previously paid.
Structure Delaware Code
Title 12 - Decedents' Estates and Fiduciary Relations
Chapter 33. ADMINISTRATIVE PROVISIONS
§ 3304. Retention by fiduciary of decedent's or settlor's investments.
§ 3305. Retention by bank or trust company acting as a fiduciary of its own stock.
§ 3306. Deviation from terms of instrument.
§ 3307. Common fund investments by bank or trust company; regulations.
§ 3309. Identification of securities.
§ 3310. Storage of securities.
§ 3311. Deposit of securities in clearing corporation.
§ 3313. Advisers [For application of this section, see 80 Del. Laws, c. 153, § 5].
§ 3314. Limitation on certain fiduciary powers.
§ 3315. Trustee's exercise of discretion; review by court; discretionary interests.
§ 3316. Substituted property; equivalent value; fiduciary duty.
§ 3317. Cofiduciaries and co-nonfiduciaries; duty to keep informed.
§ 3321. Applicability of chapter; definitions.
§ 3322. Fiduciary agency contracts; delegation.
§ 3323. Cofiduciaries and co-nonfiduciaries.
§ 3324. General powers of trustee.
§ 3326. Resignation of an officeholder.
§ 3327. Removal of an officeholder.
§ 3328. Limitation on personal liability of fiduciary.
§ 3329. Effect of no-contest provision.
§ 3335. Effect of formula clauses in certain wills and trusts.
§ 3339. Designated representatives of trusts.
§ 3340. Place of administration [For application of this section, see 80 Del. Laws, c. 153, § 5].
§ 3342. Modification of trust by consent while trustor is living.
§ 3343. Authority to allocate trustee duties among multiple trustees.