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Fiduciary duties; general principles - 20 Pa. Cons. Stat. § 8103

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     § 8103.  Fiduciary duties; general principles.
        (a)  Allocation.--In allocating receipts and disbursements to
     or between principal and income and with respect to any matter
     within the scope of this chapter, the following shall apply:
            (1)  A fiduciary shall administer a trust or estate in
        accordance with the governing instrument, even if there is a
        different provision in this chapter.
            (2)  A fiduciary may administer a trust or estate by the
        exercise of a discretionary power of administration regarding
        a matter within the scope of this chapter given to the
        fiduciary by the governing instrument, even if the exercise
        of the power produces a result different from a result
        required or permitted by this chapter. No inference that the
        fiduciary has improperly exercised the discretionary power
        shall arise from the fact that the fiduciary has made an
        allocation contrary to a provision of this chapter.
            (3)  A fiduciary shall administer a trust or estate in
        accordance with this chapter if the governing instrument does
        not contain a different provision or does not give the
        fiduciary a discretionary power of administration regarding a
        matter within the scope of this chapter.
            (4)  A fiduciary shall add a receipt or charge a
        disbursement to principal to the extent that the governing
        instrument and this chapter do not provide a rule for
        allocating the receipt or disbursement to or between
        principal and income.
        (b)  Discretionary power.--In exercising a discretionary
     power of administration regarding a matter within the scope of
     this chapter, whether granted by the governing instrument or
     this chapter, including sections 8104 (relating to trustee's
     power to adjust) and 8105 (relating to power to convert to
     unitrust), a fiduciary shall administer a trust or estate
     impartially based on what is fair and reasonable to all of the
     beneficiaries, except to the extent that the governing
     instrument clearly manifests an intention that the fiduciary
     shall or may favor one or more of the beneficiaries. A
     determination in accordance with this chapter is presumed to be
     fair and reasonable to all of the beneficiaries.

        Cross References.  Section 8103 is referred to in section
     8104 of this title.

Last modified: November 27, 2007