reglab/statecodes huggingface dataset:
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7739 - Noncharitable trust without ascertainable beneficiary - UTC 409

§ 7739. Noncharitable trust without ascertainable beneficiary - UTC 409.
Except as otherwise provided in section 7738 (relating to trust for care of animal - UTC 408) or by another statute:
(1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than 21 years.
(2) A trust authorized by this section may be enforced by a person appointed in the trust instrument or, if no person is so appointed, by a person appointed by the court.
(3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the trust instrument, property not required for the intended use must be distributed to the settlor if then living, otherwise to the settlor's successors in interest.
Cross References.
Section 7739 is referred to in sections 7710, 7732 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7740 - Termination of trusts; proceedings for termination or modification of trusts - UTC 410

§ 7740. Termination of trusts; proceedings for termination or modification of trusts - UTC 410.
(a) Termination.--
A trust terminates to the extent it is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved or the purposes of the trust have become unlawful or contrary to public policy. In addition, a trust may be terminated by the methods prescribed by sections 7740.1 (relating to modification or termination of noncharitable irrevocable trust by consent - UTC 411) through 7740.4 (relating to modification or termination of noncharitable trust - UTC 414).
(b) Proceedings for termination or modification.--
The settlor, the trustee or a beneficiary may commence a proceeding to approve or disapprove a proposed modification or termination under sections 7740.1 through 7740.6 (relating to modification to achieve settlor's tax objectives - UTC 416), the division of a trust under section 7740.7 (relating to division of trusts) or the combination of trusts under section 7740.8 (relating to combination of trusts). The settlor of a charitable trust may commence a proceeding to modify the trust under section 7740.3 (relating to charitable trusts - UTC 413).
Cross References.
Section 7740 is referred to in section 7705 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7740.1 - Modification or termination of noncharitable irrevocable trust by consent - UTC 411

§ 7740.1. Modification or termination of noncharitable irrevocable trust by consent - UTC 411.
(a) Consent by settlor and beneficiaries.--
A noncharitable irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries even if the modification or termination is inconsistent with a material purpose of the trust. A settlor's power to consent to a trust's modification or termination may be exercised by a guardian, an agent under the settlor's general power of attorney or an agent under the settlor's limited power of attorney that specifically authorizes that action. Notwithstanding Subchapter C (relating to representation), the settlor may not represent a beneficiary in the modification or termination of a trust under this subsection.
(b) Consent by beneficiaries with court approval.--
A noncharitable irrevocable trust may be modified upon the consent of all the beneficiaries only if the court concludes that the modification is not inconsistent with a material purpose of the trust. A noncharitable irrevocable trust may be terminated upon consent of all the beneficiaries only if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust.
(b.1) Spendthrift provision.--
A spendthrift provision in a trust instrument is presumed to constitute a material purpose of the trust.
(c) Distribution upon termination.--
Upon termination of a trust under subsection (a) or (b), the trustee shall distribute the trust property as agreed by the beneficiaries.
(d) Consent by some beneficiaries with court approval.--
If not all the beneficiaries consent to a proposed modification or termination of the trust under subsection (a) or (b), the modification or termination may be approved by the court only if the court is satisfied that:
(1) if all the beneficiaries had consented, the trust could have been modified or terminated under this section; and
(2) the interests of a beneficiary who does not consent will be adequately protected.
Cross References.
Section 7740.1 is referred to in sections 7705, 7740 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7740.2 - Modification or termination of noncharitable irrevocable trust by court - UTC 412

§ 7740.2. Modification or termination of noncharitable irrevocable trust by court - UTC 412.
(a) Unanticipated circumstances.--
The court may modify the administrative or dispositive provisions of a noncharitable irrevocable trust, make an allowance from the principal of the trust or terminate the trust if, because of circumstances that apparently were not anticipated by the settlor, modification, allowance or termination will further the purposes of the trust. To the extent practicable, the modification or allowance shall approximate the settlor's probable intention.
(b) Inability to administer effectively.--
The court may modify the administrative provisions of a noncharitable irrevocable trust if adherence to the existing provisions would be impracticable or wasteful or impair the trust's administration.
(c) Distribution of property.--
Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
Cross References.
Section 7740.2 is referred to in sections 7705, 7740 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7740.3 - Charitable trusts - UTC 413

§ 7740.3. Charitable trusts - UTC 413.
(a) General rule.--
Except as otherwise provided in subsection (b), if a particular charitable purpose becomes unlawful, impracticable or wasteful:
(1) the trust does not fail, in whole or in part;
(2) the trust property does not revert to the settlor or the settlor's successors in interest; and
(3) the court shall apply cy pres to fulfill as nearly as possible the settlor's charitable intention, whether it be general or specific.
(b) Exception.--
A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under subsection (a) to apply cy pres.
(c) Administrative deviation.--
A court may modify an administrative provision of a charitable trust to the extent necessary to preserve the trust.
(d) Administrative termination of small charitable trusts.--
A trust solely for charitable purposes having assets of less than $100,000 may be terminated at its inception or at any time thereafter by the trustee with the consent of the Attorney General and all charitable organizations that are designated as beneficiaries by name in the trust instrument. Upon termination, the assets, subject to the approval of the Attorney General, shall be delivered to the organizations, if any, designated in the trust instrument or, if none, to organizations selected by the trustee, in either case to be held and applied for the general or specific charitable purposes and on the terms that will, in the trustee's discretion, fulfill as nearly as possible the settlor's intention.
(e) Judicial termination of charitable trusts.--
If the separate existence of a trust, whenever created, solely for charitable purposes results or will result in administrative expense or other burdens unreasonably out of proportion to the charitable benefits, the court may, upon application of the trustee or any interested person and after notice to the Attorney General, terminate the trust, either at its inception or at any time thereafter, and award the assets outright, free of the trust, to the charitable organizations, if any, designated in the trust instrument or, if none, to charitable organizations selected by the court, in either case for the purposes and on the terms that the court may direct to fulfill as nearly as possible the settlor's intentions other than any intent to continue the trust, if the court is satisfied that the charitable organizations will properly use or administer the assets.
Cross References.
Section 7740.3 is referred to in sections 7705, 7740 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7740.4 - Modification or termination of noncharitable trust - UTC 414

§ 7740.4. Modification or termination of noncharitable trust - UTC 414.
(a) Trustee's authority.--
A trustee of a noncharitable trust may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration, the trustee has given written notice to the qualified beneficiaries at least 60 days before the proposed termination and no qualified beneficiary provides the trustee with a written objection to the proposed termination on or before the date specified in the notice.
(b) Court authority.--
The court may modify or terminate a noncharitable trust, or remove the trustee and appoint a different trustee, if it determines that the value of the trust property is insufficient to justify the cost of administration.
(c) Distribution of trust property.--
Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
Cross References.
Section 7740.4 is referred to in sections 7705, 7740 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7740.5 - Reformation to correct mistakes - UTC 415

§ 7740.5. Reformation to correct mistakes - UTC 415.
The court may reform a trust instrument, even if unambiguous, to conform to the settlor's probable intention if it is proved by clear and convincing evidence that the settlor's intent as expressed in the trust instrument was affected by a mistake of fact or law, whether in expression or inducement. The court may provide that the modification have retroactive effect.
Cross References.
Section 7740.5 is referred to in sections 7705, 7740 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7740.6 - Modification to achieve settlor's tax objectives - UTC 416

§ 7740.6. Modification to achieve settlor's tax objectives - UTC 416.
The court may modify a trust instrument in a manner that is not contrary to the settlor's probable intention in order to achieve the settlor's tax objectives. The court may provide that the modification have retroactive effect.
Cross References.
Section 7740.6 is referred to in sections 7705, 7740 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7740.7 - Division of trusts

§ 7740.7. Division of trusts.
(a) Without court approval.--
A trustee may, without court approval, divide a trust into separate trusts, allocating to each separate trust either a fractional share of each asset and each liability held by the original trust or assets having an appropriate aggregate fair market value and fairly representing the appreciation or depreciation in the assets of the original trust as a whole. The beneficiaries of the separate trusts may be different so long as their rights are not impaired. If the division reflects disclaimers or different tax elections, the division shall relate back to the date to which the disclaimer or tax election relates.
(b) With court approval.--
The court, for cause shown, may authorize the division of a trust into separate trusts upon such terms and conditions and with notice as the court shall direct.
(c) Separate fund.--
A trustee may, without court approval, set aside property in a separate fund prior to actual distribution, after which income earned on the separate fund and appreciation or depreciation of the fund set-aside shall belong to the separate fund.
(July 8, 2016, P.L.497, No.79, eff. Jan. 1, 2017)
2016 Amendment.
Act 79 amended subsec. (b).
Cross References.
Section 7740.7 is referred to in section 7740 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7740.8 - Combination of trusts

§ 7740.8. Combination of trusts.
(a) With court approval.--
The court, for cause shown, may authorize the combination of separate trusts with substantially similar provisions upon terms and conditions and with notice as the court shall direct notwithstanding that the trusts may have been created by separate instruments and by different persons. If necessary to protect possibly different future interests, the assets shall be valued at the time of the combination, and a record made of the proportionate interest of each separate trust in the combined fund.
(b) Without court approval.--
A trustee may, without court approval, combine trusts that were created under the same or different instruments if the trusts have identical provisions, tax attributes and trustees.
Cross References.
Section 7740.8 is referred to in section 7740 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7741 - Rights of beneficiary's creditor or assignee - UTC 501

§ 7741. Rights of beneficiary's creditor or assignee - UTC 501.
A judgment creditor or assignee of the beneficiary may reach the beneficiary's interest by attachment of present or future distributions to or for the benefit of the beneficiary or other means to the extent the beneficiary's interest is not subject to a spendthrift provision.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7742 - Spendthrift provision - UTC 502

§ 7742. Spendthrift provision - UTC 502.
(a) Validity.--
A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest.
(b) Creation.--
A trust instrument providing that the interest of a beneficiary is held subject to a "spendthrift trust," or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest.
(c) Effect.--
A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision. Except as otherwise provided in this subchapter, a creditor or assignee of the beneficiary of a spendthrift trust may not reach the interest or a distribution by the trustee before its receipt by the beneficiary.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7743 - Exceptions to spendthrift provision - UTC 503

§ 7743. Exceptions to spendthrift provision - UTC 503.
(a) (Reserved).
(b) Who may override.--
A spendthrift provision is unenforceable against:
(1) a beneficiary's child who has a judgment or court order against the beneficiary for support or maintenance, to the extent of the beneficiary's interests in the income and principal of the trust;
(2) any other person who has a judgment or court order against the beneficiary for support or maintenance, to the extent of the beneficiary's interest in the trust's income;
(3) a judgment creditor who has provided services for the protection of the beneficiary's interest in the trust; and
(4) a claim of the United States or the Commonwealth to the extent Federal law or a statute of this Commonwealth provides.
(c) Remedy if unenforceable.--
A claimant against whom a spendthrift provision cannot be enforced may obtain from a court an order attaching present or future distributions to or for the benefit of the beneficiary. The court may limit the award to such relief as is appropriate under the circumstances.
(d) Definition.--
As used in this section, the term "child" includes any person for whom an order or judgment for child support has been entered in this Commonwealth or another state.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7744 - Discretionary trusts; effect of standard - UTC 504

§ 7744. Discretionary trusts; effect of standard - UTC 504.
(a) (Reserved).
(b) Distribution not compelled.--
Except as otherwise provided in subsection (c), whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee's discretion, even if:
(1) the discretion is expressed in the form of a standard of distribution;
(2) the trustee has abused the discretion; or
(3) the beneficiary is the trustee or a cotrustee of the trust.
(c) Exception.--
To the extent a trustee has not complied with a standard of distribution or has abused a discretion:
(1) a distribution from the trust's income, principal or both may be ordered by the court to satisfy a judgment or court order against the beneficiary for support or maintenance of the beneficiary's child to the extent of the beneficiary's interests in the trust's income, principal or both, and the court shall direct the trustee to pay the child from the trust an amount as is equitable under the circumstances, but not more than the amount the trustee would have been required to distribute to or for the benefit of the beneficiary had the trustee complied with the standard or not abused the discretion; and
(2) a distribution from trust income may be ordered by the court to satisfy a judgment or court order against the beneficiary for support or maintenance of any person other than the beneficiary's child to the extent of the beneficiary's interest in the income of the trust, and the court shall direct the trustee to pay the person an amount from the income of the trust as is equitable under the circumstances, but not more than the amount of income the trustee would have been required to distribute to or for the benefit of the beneficiary had the trustee complied with the standard or not abused the discretion.
(d) Proceeding against trustee.--
This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.
(e) (Reserved).
(f) Definition.--
As used in this section, the term "child" includes any person for whom an order or judgment for child support has been entered in this Commonwealth or another state.
Cross References.
Section 7744 is referred to in section 7745 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7745 - Creditor's claim against settlor - UTC 505(a)

§ 7745. Creditor's claim against settlor - UTC 505(a).
Whether or not a trust instrument contains a spendthrift provision and notwithstanding section 7744 (relating to discretionary trusts; effect of standard - UTC 504):
(1) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors.
(2) A judgment creditor or assignee of the settlor of an irrevocable trust may reach the maximum amount that can be distributed to or for the settlor's benefit. If a trust has more than one settlor, the creditor or assignee of a particular settlor may reach the portion of the trust attributable to that settlor's contribution. However, the assets of an irrevocable trust are not subject to the claims of a creditor of the settlor solely because of the existence of the trustee's discretionary power to pay directly to the taxing authorities or to reimburse the settlor for any income tax payable by the settlor attributable to trust income or principal.
(3) After the death of the settlor and subject to the settlor's right to direct the source from which liabilities will be paid, the property of a revocable trust is subject to claims of the settlor's creditors, costs of administration of the settlor's estate, the expenses of the settlor's funeral and disposal of remains and the family exemption to the extent the settlor's probate estate is inadequate to satisfy those claims, costs, expenses and exemption and no other statute specifically exempts the property from those claims.
(Oct. 27, 2010, P.L.837, No.85, eff. imd.)
2010 Amendment.
Section 10(a)(1) of Act 85 provided that the amendment of section 7745 shall be retroactive to November 6, 2006.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7746 - Overdue distribution - UTC 506

§ 7746. Overdue distribution - UTC 506.
(a) Distribution not made within reasonable time.--
Whether or not the interest of the beneficiary in the trust is subject to a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the mandated distribution date.
(b) Definition.--
As used in this section, the term "mandatory distribution" means a distribution of income or principal that the trustee is required by the trust instrument to make to a beneficiary, including a distribution upon the termination of the trust. The term excludes a distribution that is subject to the exercise of the trustee's discretion regardless of whether the trust instrument includes a support or other standard to guide the trustee in making distribution decisions or provides that the trustee "may" or "shall" make discretionary distributions, including distributions pursuant to a support or other standard.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7747 - Personal obligations of trustee - UTC 507

§ 7747. Personal obligations of trustee - UTC 507.
Trust property is not subject to personal obligations of the trustee even if the trustee becomes insolvent or bankrupt.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7748 - Property subject to power of withdrawal - UTC 505(b)

§ 7748. Property subject to power of withdrawal - UTC 505(b).
Trust property that is subject to a power of withdrawal, during the period the power may be exercised and after its lapse, release or waiver, may be reached by a creditor or an assignee of the holder of the power whether or not the interest of the holder in the trust is subject to a spendthrift provision.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7751 - Capacity of settlor of revocable trust - UTC 601

§ 7751. Capacity of settlor of revocable trust - UTC 601.
The capacity required to create, amend, revoke or add property to a revocable trust or to direct the actions of the trustee of a revocable trust is the same as that required to make a will.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7752 - Revocation or amendment of revocable trust - UTC 602

§ 7752. Revocation or amendment of revocable trust - UTC 602.
(a) Power to revoke or amend.--
The settlor may revoke or amend a trust unless the trust instrument expressly provides that the trust is irrevocable.
(b) More than one settlor.--
If a revocable trust is created or funded by more than one settlor:
(1) to the extent the trust consists of community property, either spouse alone who notifies the other spouse may revoke the trust, but the trust may be amended only by joint action of both spouses;
(2) to the extent the trust consists of property other than community property, each settlor may revoke or amend the trust with respect to the portion of the trust property attributable to that settlor's contribution upon notice to each other settlor; and
(3) upon the revocation or amendment of the trust by fewer than all the settlors, the trustee shall promptly notify the other settlors of the revocation or amendment.
(c) How to revoke or amend.--
The settlor may revoke or amend a revocable trust only:
(1) by substantial compliance with a method provided in the trust instrument; or
(2) if the trust instrument does not provide a method or the method provided in the trust instrument is not expressly made exclusive, by a later writing, other than a will or codicil, that is signed by the settlor and expressly refers to the trust or specifically conveys property that would otherwise have passed according to the trust instrument.
(d) Delivery of property.--
Upon revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs.
(e) Agent.--
A settlor's powers with respect to revocation or amendment of the nondispositive provisions of or withdrawal of property from a trust may be exercised by an agent under a power of attorney only to the extent expressly authorized by the trust instrument or the power. The agent under a power of attorney that expressly authorizes the agent to do so may amend the dispositive provisions of a revocable trust as the court may direct.
(f) Guardian.--
A guardian of the settlor's estate may exercise the settlor's powers with respect to revocation or amendment of or withdrawal of property from a revocable trust as the court may direct.
(g) Liability.--
A trustee who does not know that a trust has been revoked or amended is not liable to the settlor, the settlor's successors in interest or the beneficiaries for distributions made and other actions taken on the assumption that the trust had not been amended or revoked.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7753 - Trustee's duties; powers of withdrawal - UTC 603

§ 7753. Trustee's duties; powers of withdrawal - UTC 603.
(a) Power of settlor.--
Regardless of the legal capacity of the settlor, the rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor while a trust is revocable.
(b) Holder of power of withdrawal.--
The holder of a power of withdrawal has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power during the period the power may be exercised.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7754 - Actions contesting validity of revocable trust

§ 7754. Actions contesting validity of revocable trust.
(a) How action may be commenced.--
A person having standing to do so may contest the validity of a revocable trust by filing a petition with the court.
(b) Time limit.--
The petition described in subsection (a) must be filed no later than one year after the date on which the trustee gave the notice required by section 7780.3(c) (relating to duty to inform and report). The court, upon petition of a party in interest and with such notice as the court may direct, may limit the time by which a petition under this section must be filed to six months after the date on which the trustee gave the notice required by section 7780.3(c).
(c) Grounds for contest.--
The grounds for contesting the validity of a revocable trust shall be the same as those for contesting the validity of a will.
(d) Competency of witnesses.--
The competency of a witness in an action contesting the validity of a revocable trust shall be governed by the same rules that apply in actions contesting the validity of a will.
(Oct. 27, 2010, P.L.837, No.85, eff. 60 days)
2010 Amendment.
Act 85 added subsec. (d).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7761 - Accepting or declining trusteeship - UTC 701

§ 7761. Accepting or declining trusteeship - UTC 701.
(a) Accepting trusteeship.--
Except as otherwise provided in subsection (c), a person designated as trustee accepts the trusteeship:
(1) by substantially complying with a method of acceptance provided in the trust instrument; or
(2) if the trust instrument does not provide a method or the method provided in the trust instrument is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee or by otherwise indicating acceptance of the trusteeship.
(b) Rejecting trusteeship.--
A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(c) Actions not constituting acceptance of trusteeship.--
A person designated as trustee, without accepting the trusteeship, may:
(1) act to preserve the trust property if, within a reasonable time after acting, the person sends a written rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and
(2) inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7762 - Trustee's bond - UTC 702

§ 7762. Trustee's bond - UTC 702.
(a) When required.--
A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the provisions of the trust instrument and the court has not dispensed with the requirement.
(b) Judicial authority.--
The court may specify the amount of a bond, its liabilities and whether sureties are necessary. The court may modify or terminate a bond at any time.
(c) Institutional trustees.--
An institution qualified to do trust business in this Commonwealth need not give bond even if required by the trust instrument.
Cross References.
Section 7762 is referred to in section 7705 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7763 - Cotrustees - UTC 703

§ 7763. Cotrustees - UTC 703.
(a) Majority decision.--
Cotrustees who do not reach a unanimous decision may act by majority decision.
(a.1) When no majority.--
When a dispute arises among trustees as to the exercise or nonexercise of any of their powers and there is no agreement by a majority of them, unless otherwise provided by the trust instrument, the court in its discretion, upon petition filed by any of the trustees or any party in interest, aided if necessary by the report of a master, may direct the exercise or nonexercise of the power as it deems necessary for the best interest of the trust.
(b) Vacancy.--
If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(c) Performance.--
A cotrustee shall participate in the performance of a trustee's function unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under the law or other reason or the cotrustee has properly delegated the performance of the function to another trustee.
(d) Unavailability.--
If a cotrustee is unavailable to perform duties and prompt action is necessary to achieve the purposes of the trust or to avoid injury or loss to the trust property, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.
(e) (Reserved).
(f) Liability.--
Except as otherwise provided in subsection (g), a trustee who does not join in an action of another trustee is not liable for the action.
(g) Reasonable care.--
Each trustee shall exercise reasonable care to:
(1) prevent a cotrustee from committing a breach of trust involving fraud or self-dealing; and
(2) compel a cotrustee to redress a breach of trust involving fraud or self-dealing.
(h) Dissenting trustee.--
A dissenting trustee shall join the majority to carry out a majority decision requiring affirmative action and may be ordered to do so by the court. A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified any cotrustee of the dissent at or before the time of the action is not liable for the action unless the action is a breach of trust involving fraud or self-dealing.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7764 - Vacancy in trusteeship; appointment of successor - UTC 704

§ 7764. Vacancy in trusteeship; appointment of successor - UTC 704.
(a) When vacancy occurs.--
A vacancy in a trusteeship occurs if:
(1) a person designated as trustee rejects the trusteeship;
(2) a person designated as trustee cannot be identified or does not exist;
(3) a trustee resigns;
(4) a trustee is disqualified or removed;
(5) a trustee dies; or
(6) a trustee is determined by the court to be incapacitated pursuant to section 5511 (relating to petition and hearing; independent evaluation).
(b) Filling of vacancy.--
A vacancy in a trusteeship need not be filled if one or more cotrustees remain in office and the trust instrument does not require that it be filled. A vacancy shall be filled if the trust has no remaining trustee.
(c) Filling vacancy for noncharitable trust.--
A vacancy in a trusteeship of a noncharitable trust that is required to be filled shall be filled in the following order of priority:
(1) by a person designated in or pursuant to the provisions of the trust instrument to act as successor trustee;
(2) by a person appointed by unanimous written agreement of the qualified beneficiaries; or
(3) by a person appointed by the court.
(d) Filling vacancy for charitable trust.--
A vacancy in a trusteeship of a charitable trust that is required to be filled shall be filled in the following order of priority:
(1) by a person designated in or under the provisions of the trust instrument to act as successor trustee;
(2) by a person selected by unanimous written agreement of the qualified beneficiaries if the Office of Attorney General concurs in the selection; or
(3) by a person appointed by the court.
(e) Appointment by court.--
Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary if the court considers the appointment desirable for the administration of the trust.
(f) Filing appointment.--
An appointment of a trustee and an acceptance of an appointment of a trustee may be filed with the clerk of court having jurisdiction over the trust.
Cross References.
Section 7764 is referred to in section 7708 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7765 - Resignation of trustee; filing resignation

§ 7765. Resignation of trustee; filing resignation.
(a) Court approval.--
(Deleted by amendment).
(a.1) General rule.--
A trustee may resign:
(1) with court approval;
(2) without court approval if authorized to resign by the trust instrument; or
(3) pursuant to a nonjudicial settlement agreement described in section 7710.1 (relating to nonjudicial settlement agreements - UTC 111).
(b) Without court approval if authorized by trust instrument.--
(Deleted by amendment).
(c) Without court approval and without authorization in trust instrument.--
(Deleted by amendment).
(d) Liability.--
The resignation of a trustee shall not by itself relieve the resigning trustee of liability in connection with the administration of the trust.
(e) Filing resignation.--
A resignation of a trustee may be filed with the clerk of the court having jurisdiction over the trust.
(July 8, 2016, P.L.497, No.79, eff. Jan. 1, 2017)
2016 Amendment.
Act 79 added subsec. (a.1) and deleted subsecs. (a), (b) and (c).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7766 - Removal of trustee - UTC 706

§ 7766. Removal of trustee - UTC 706.
(a) Request to remove trustee; court authority.--
The settlor, a cotrustee or a beneficiary may request the court to remove a trustee or a trustee may be removed by the court on its own initiative.
(b) When court may remove trustee.--
The court may remove a trustee if it finds that removal of the trustee best serves the interests of the beneficiaries of the trust and is not inconsistent with a material purpose of the trust, a suitable cotrustee or successor trustee is available and:
(1) the trustee has committed a serious breach of trust;
(2) lack of cooperation among cotrustees substantially impairs the administration of the trust;
(3) the trustee has not effectively administered the trust because of the trustee's unfitness, unwillingness or persistent failures; or
(4) there has been a substantial change of circumstances. A corporate reorganization of an institutional trustee, including a plan of merger or consolidation, is not itself a substantial change of circumstances.
(c) Court remedies.--
Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order appropriate relief under section 7781(b) (relating to remedies for breach of trust - UTC 1001) as may be necessary to protect the trust property or the interests of the beneficiaries.
(d) Procedure.--
The procedure for removal and discharge of a trustee and the effect of removal and discharge shall be the same as that set forth in sections 3183 (relating to procedure for and effect of removal) and 3184 (relating to discharge of personal representative and surety).
(e) Cross reference.--
See section 1608 of the act of November 30, 1965 (P.L.847, No.356), known as the Banking Code of 1965.
(Oct. 27, 2010, P.L.837, No.85, eff. 60 days)
2010 Amendment.
Act 85 amended subsec. (b) and added subsec. (e).
Cross References.
Section 7766 is referred to in section 7781 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7767 - Delivery of property by former trustee - UTC 707

§ 7767. Delivery of property by former trustee - UTC 707.
(a) Duties and powers of trustee.--
Unless a cotrustee remains in office or the court otherwise orders, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property until the trust property is delivered to a successor trustee or other person entitled to it.
(b) Delivery of trust property.--
A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the cotrustee, successor trustee or other person entitled to it.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7768 - Compensation of trustee - UTC 708

§ 7768. Compensation of trustee - UTC 708.
(a) If unspecified.--
If neither the trust instrument nor a separate written agreement signed by the settlor or anyone who is authorized by the trust instrument to do so specifies the trustee's compensation, the trustee is entitled to compensation that is reasonable under the circumstances. Neither a compensation provision in a trust instrument nor a fee agreement governs compensation payable from trust principal unless it explicitly so provides.
(b) If specified; adjustment.--
If a trust instrument or written fee agreement signed by the settlor or anyone who is authorized by the trust instrument to do so specifies a trustee's compensation, the trustee is entitled to the specified compensation. The court may allow reasonable compensation that is more or less than that specified if:
(1) the duties of the trustee have become substantially different from those contemplated when the trust was created or when the fee agreement was executed;
(2) the compensation specified in the trust instrument or fee agreement would be unreasonable; or
(3) the trustee performed extraordinary services, and the trust instrument or fee agreement does not specify the trustee's compensation for those services.
(c) Entitlement not barred.--
None of the following shall bar a trustee's entitlement to compensation from the income or principal of the trust:
(1) The trust is perpetual or for any other reason has not yet terminated.
(2) The trustee's term of office has not yet ended.
(3) The trustee of a testamentary trust also acted as a personal representative of the settlor and was or might have been compensated for services as a personal representative from the principal of the settlor's estate.
(d) Court authority.--
In determining reasonable compensation, the court may consider, among other facts, the market value of the trust and may determine compensation as a fixed or graduated percentage of the trust's market value. The court may allow compensation from principal, income or both and determine the frequency with which compensation may be collected. Compensation at levels that arise in a competitive market shall be presumed to be reasonable in the absence of compelling evidence to the contrary.
(e) Cemetery lots.--
The authority in this section to pay compensation from trust principal shall not apply to trusts created by cemetery lot owners as endowments for the endowed care and maintenance of burial or cemetery lots if the principal sum involved is less than $20,000. Compensation shall be paid exclusively from the income of such trusts.
Cross References.
Section 7768 is referred to in section 7705 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7769 - Reimbursement of expenses - UTC 709

§ 7769. Reimbursement of expenses - UTC 709.
(a) Reimbursement from trust property.--
A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for:
(1) expenses that were properly incurred in the administration of the trust; and
(2) to the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(b) Advance.--
An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7770 - Liability of successor trustee

§ 7770. Liability of successor trustee.
A successor trustee shall not be personally liable for the acts or omissions of the trustee's predecessor and shall have no duty to investigate the acts or omissions of the predecessor.
Cross References.
Section 7770 is referred to in section 7780.1 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7771 - Duty to administer trust - UTC 801

§ 7771. Duty to administer trust - UTC 801.
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its provisions and purposes and the interests of the beneficiaries and in accordance with applicable law.
Cross References.
Section 7771 is referred to in section 7705 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7773 - Impartiality - UTC 803

§ 7773. Impartiality - UTC 803.
If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing and distributing the trust property, giving due regard to the beneficiaries' respective interests in light of the purposes of the trust. The duty to act impartially does not mean that the trustee must treat the beneficiaries equally. Rather, the trustee must treat the beneficiaries equitably in light of the purposes of the trust.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7774 - Prudent administration - UTC 804

§ 7774. Prudent administration - UTC 804.
A trustee shall administer the trust as a prudent person would, by considering the purposes, provisions, distributional requirements and other circumstances of the trust and by exercising reasonable care, skill and caution.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7775 - Costs of administration - UTC 805

§ 7775. Costs of administration - UTC 805.
In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust and the skills of the trustee.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES › Chapter 77 - Trusts › Section 7776 - Trustee's skills - UTC 806

§ 7776. Trustee's skills - UTC 806.
A trustee who has special skills or expertise relevant to a trust or who is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise relevant to a trust shall use those special skills or expertise in the administration of the trust.