In the Matter of the Niki and Darren Irrevocable Trust

10. In the Matter of the Niki and Darren Irrevocable Trust

**Citation:** C.A. No. 2019-0302-BWD (Del. Ch. Nov. 19, 2025)

Relevant Facts

• Niki and Darren Rushin were married in El Salvador in 1997 and divorced in 2018.

• Niki's mother settled an irrevocable California trust in 2012 for herself, Niki, Darren, and their two children.

• Darren directed creation of a new Delaware trust (2014 Trust) and attempted to decant assets from the 2012 Trust.

• Counsel warned Darren that the decanting was unauthorized but he proceeded anyway.

Legal Issues

Whether the decanting was valid under Delaware law; whether Darren's counterclaims should be dismissed based on unclean hands; how to implement reversal of the invalid decanting; and whether a no-contest clause was triggered.

Decision by the Court

The decanting was invalid because Ildiko did not retain the power to invade principal under the 2012 Trust. Darren's counterclaims were dismissed. The no-contest clause does not apply.

Reasons for the Decision

The doctrine of unclean hands precluded Darren from asserting equitable claims. The court applied Restatement (Second) of Trusts sec. 202 for asset tracing. The no-contest clause did not apply because the lawsuit sought to void the invalid decanting transaction, not the 2014 Trust instrument itself.

Trust Modification & Reformation

Trust Real Property