20 Pennsylvania Consolidated Statutes Chapter 77 - Trusts

• Chapter Notes

Subchapter A.  General Provisions

• Section 7701 - Short Title Of Chapter - Utc 101
  Subchapters A (relating to general provisions) through I (relating to liability of trustees and rights of persons dealing with trustees) shall be known and...
• Section 7702 - Scope Of Chapter - Utc 102
  This chapter applies to express trusts, charitable and noncharitable, and trusts created pursuant to a statute, judgment or decree that requires the trust to...
• Section 7703 - Definitions - Utc 103
  The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly...
• Section 7704 - Knowledge - Utc 104
  (a) When person has knowledge.--For the purposes of this chapter and subject to subsection (b), a person has knowledge of a fact involving a...
• Section 7705 - Trust Instrument Controls; Mandatory Rules - Utc 105
  (a) Trust instrument controls.--Except as provided in subsection (b), the provisions of a trust instrument prevail over any contrary provisions of this chapter. (b)...
• Section 7706 - Common Law Of Trusts; Principles Of Equity - Utc 106
  The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of...
• Section 7707 - Governing Law - Utc 107
  The meaning and effect of the provisions of a trust instrument shall be determined by: (1) the law of the jurisdiction designated in the...
• Section 7708 - Situs Of Trust
  (a) Specified in trust instrument.--Without precluding other means for establishing a sufficient connection with the designated jurisdiction, provisions of a trust instrument designating the...
• Section 7709 - Methods And Waiver Of Notice - Utc 109
  (a) Notice generally.--Notice to a person under this chapter or the sending of a document to a person under this chapter must be accomplished...
• Section 7710 - Notice; Others Treated As Beneficiaries - Utc 110
  (a) Notice.--Whenever notice to qualified or current beneficiaries of a trust is required under this chapter, the trustee must also give notice to any...
• Section 7710.1 - Nonjudicial Settlement Agreements - Utc 111
  (a) (Reserved). (b) General rule.--Except as otherwise provided in subsection (c), all beneficiaries and trustees of a trust may enter into a binding nonjudicial...
• Section 7710.2 - Rules Of Construction - Utc 112
  The rules of construction that apply in this Commonwealth to the provisions of testamentary trusts also apply as appropriate to the provisions of inter...

Subchapter B.  Judicial Proceedings

• Section 7711 - Role Of Court In Administration Of Trust - Utc 201
  (a) Judicial intervention.--The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or...
• Section 7712 - Jurisdiction Over Trustee And Beneficiary - Utc 202
  (a) Personal jurisdiction over trustee.--By accepting the trusteeship of a trust having its situs in this Commonwealth or by moving the situs to this...
• Section 7713 - (Reserved)
• Section 7714 - Venue - Utc 204
  (a) General rule.--Except as otherwise provided in subsection (b), venue for a judicial proceeding involving a trust is in the county of this Commonwealth...

Subchapter C.  Representation

• Section 7721 - Scope; Definition Of Trust Matter
  (a) Scope.--This subchapter shall apply to this entire chapter unless the context clearly specifies the contrary. (b) Definition.--As used in this subchapter, the term...
• Section 7722 - Representation Of Parties In Interest In General
  (a) Judicial proceeding.--In a judicial proceeding involving a trust matter, an order or decree of the court that binds the representative or representatives is...
• Section 7723 - Representatives And Persons Represented
  The following rules except as set forth in paragraph (7) apply to the extent there is no conflict of interest with respect to the...
• Section 7724 - Appointment Of Representative
  Notwithstanding any other provision of this subchapter, if in any judicial proceeding involving a trust matter the court determines that the representation provided by...
• Section 7725 - Notice Of Representation
  A person representing another must be given written notice by the trustee that the person is representing the other person. A person to whom...
• Section 7726 - Representation Ineffective If Person Objects
  Notwithstanding the provisions of this subchapter, a person may not represent another who is sui juris and files a written objection to representation with...

Subchapter D.  Creation, Validity, Modification and Termination of Trust

• Section 7731 - Creation Of Trust - Utc 401
  A trust may be created by: (1) transfer of property under a written instrument to another person as trustee during the settlor's lifetime or...
• Section 7732 - Requirements For Creation - Utc 402
  (a) Requirements.--A trust is created only if: (1) the settlor has capacity to create a trust; (2) the settlor signs a writing that indicates...
• Section 7733 - Written Trusts Created In Other Jurisdictions - Utc 403
  A written trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust...
• Section 7734 - Trust Purposes - Utc 404
  A trust may be created only to the extent its purposes are lawful and not contrary to public policy. Cross References. Section 7734 is...
• Section 7735 - Charitable Purposes; Enforcement - Utc 405
  (a) Purposes.--A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or...
• Section 7736 - Creation Of Trust Induced By Fraud, Duress Or Undue Influence - Utc 406
  A trust or an amendment to a trust is voidable to the extent its creation was induced by fraud, duress or undue influence.
• Section 7737 - Oral Trusts Unenforceable
  Oral trusts are unenforceable in this Commonwealth. Applicability. Section 16(4)(i) of Act 98 of 2006 provided that section 7737 shall not apply to oral...
• Section 7738 - Trust For Care Of Animal - Utc 408
  (a) Creation and termination.--A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...

Subchapter E.  Creditor's Claims; Spendthrift and Discretionary Trusts

• Section 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...
• Section 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...
• Section 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...
• Section 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...
• 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...
• Section 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...
• Section 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.
• 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...

Subchapter F.  Revocable Trusts

• Section 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...
• Section 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....
• Section 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...
• Section 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...
• Section 7755 - Claims And Distribution After Settlor's Death
  (a) Creditors' rights.--Creditors of the settlor of a revocable trust shall have the same rights against the trust assets determined immediately before the settlor's...

Subchapter G.  Office of Trustee

• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 7765 - Resignation Of Trustee; Filing Resignation
  (a) Court approval.--A trustee may resign with court approval. (b) Without court approval if authorized by trust instrument.--A trustee may resign without court approval...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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...

Subchapter H.  Duties and Powers of Trustee

• Section 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...
• Section 7772 - Duty Of Loyalty - Utc 802
  (a) Duty of trustee.--A trustee shall administer the trust solely in the interests of the beneficiaries. (b) Effect of conflict of interest.--Subject to the...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 7777 - Delegation By Trustee
  (a) Standards for delegation.--A trustee may delegate duties and powers that a prudent trustee of comparable skills might delegate under the circumstances. The trustee...
• Section 7778 - Powers To Direct - Utc 808
  (a) Direction of settlor.--While a trust is revocable, the trustee may follow a written direction of the settlor that is contrary to the trust...
• Section 7779 - Control And Protection Of Trust Property - Utc 809
  A trustee shall take reasonable steps to take control of and protect the trust property.
• Section 7780 - Record Keeping And Identification Of Trust Property - Utc 810
  § 7780. Recordkeeping and identification of trust property - UTC 810. (a) Records.--A trustee shall keep adequate records of the administration of the trust....
• Section 7780.1 - Enforcement And Defense Of Claims - Utc 811
  Except as provided in section 7770 (relating to liability of successor trustee), a trustee shall take reasonable steps to enforce claims of the trust...
• Section 7780.2 - (Reserved)
• Section 7780.3 - Duty To Inform And Report
  (a) Duty to respond to requests.--A trustee shall promptly respond to a reasonable request by the settlor of a trust or by a beneficiary...
• Section 7780.4 - Discretionary Powers
  The trustee shall exercise a discretionary power in good faith and in accordance with the provisions and purposes of the trust and the interests...
• Section 7780.5 - Powers Of Trustees - Utc 815
  (a) Exercise of power.--Except as otherwise provided in the trust instrument or in other provisions of this title, a trustee has all the powers...
• Section 7780.6 - Illustrative Powers Of Trustee
  (a) Listing.--The powers which a trustee may exercise pursuant to section 7780.5 (relating to powers of trustees - UTC 815) include the following powers:...
• Section 7780.7 - Distribution Upon Termination
  Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed to distribute the trust property within a reasonable...

Subchapter I.  Liability of Trustees and Rights of Persons Dealing with Trustees

• Section 7781 - Remedies For Breach Of Trust - Utc 1001
  (a) What constitutes breach of trust.--A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust....
• Section 7782 - Damages For Breach Of Trust - Utc 1002
  (a) Liability for breach of trust.--A trustee who commits a breach of trust is liable to the beneficiaries affected. (b) Contribution.-- (1) Except as...
• Section 7783 - Damages In Absence Of Breach - Utc 1003
  (a) Profit.--A trustee is accountable to an affected beneficiary for any profit, excluding reasonable compensation, made by the trustee arising from the administration of...
• Section 7784 - (Reserved)
• Section 7785 - Limitation Of Action Against Trustee
  (a) Imposed by trustee's written reports.-- (1) A beneficiary is barred from challenging a transaction or asserting a claim against a trustee for breach...
• Section 7786 - Reliance On Trust Instrument - Utc 1006
  A trustee who acts in reasonable reliance on the express provisions of the trust instrument is not liable to a beneficiary for a breach...
• Section 7787 - Event Affecting Administration Or Distribution - Utc 1007
  If the happening of an event, including marriage, divorce, performance of educational requirements, attaining a specific age or death, affects the administration or distribution...
• Section 7788 - Exculpation Of Trustee - Utc 1008
  (a) When exculpatory provision unenforceable.--A provision of a trust instrument relieving a trustee of liability for breach of trust is unenforceable to the extent...
• Section 7789 - Beneficiary's Consent, Release Or Ratification - Utc 1009
  A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the...
• Section 7790 - Limitation On Personal Liability Of Trustee - Utc 1010
  (a) When trustee not personally liable.--Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into...
• Section 7790.1 - Interest As General Partner - Utc 1011
  (a) Contractual liability.--Except as otherwise provided in subsection (c) or unless personal liability is imposed in the contract, a trustee who holds an interest...
• Section 7790.2 - Protection Of Person Dealing With Trustee - Utc 1012
  (a) (Reserved). (a.1) Protection from liability.--Unless a person assisting or dealing with a trustee has actual knowledge that the trustee is committing a breach...
• Section 7790.3 - Certification Of Trust - Utc 1013
  (a) Contents of certification.--Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to...

Subchapter J.  Miscellaneous Provisions

• Section 7791 - Abandonment Of Property
  If any property is so burdensome or is so encumbered or is in such condition that it is of no value to the trust,...
• Section 7792 - Powers, Duties And Liabilities Identical With Personal Representatives
  The provisions concerning the powers, duties and liabilities of a trustee shall be the same as those set forth in the following provisions of...
• Section 7793 - Effect Of Removal, Or Of Probate Of Later Will Or Codicil
  (a) No impeachment.--No act of administration performed by a testamentary trustee in good faith shall be impeached by the subsequent: (1) revocation of the...
• Section 7794 - Title Of Purchaser
  If the trustee has given a bond as required in accordance with this title, any sale, pledge, mortgage or exchange by a trustee, whether...
• Section 7795 - Reports For School District Trustees
  (a) Scope.--This section applies if a school district is a trustee of land in accordance with all of the following: (1) The land is...
• Section 7796 - Jurisdiction
  Notwithstanding 42 Pa.C.S. § 931 (relating to original jurisdiction and venue), jurisdiction over an action involving land referred to in section 7795 (relating to...
• Section 7797 - Filing Accounts
  (a) When to file.--A trustee shall file an account of his administration whenever directed to do so by the court and may file an...
• Section 7798 - Failure To Present Claim At Audit
  (a) Applicability.--This section applies to a person that, at the audit of a trustee's account, has a claim that: (1) arose out of the...
• Section 7799 - Income On Distributive Shares
  Except as otherwise provided by the trust instrument or by the provisions of section 3543 (relating to income on distributive shares): (1) If a...
• Section 7799.1 - Annexation Of Account Of Distributed Estate Or Trust
  A trustee who has received property from a personal representative or from another trustee in distribution of an estate or another trust may annex...
• Section 7799.2 - Accounts, Audits And Distributions
  The provisions concerning accounts, audits and distributions in trust estates shall be the same as those set forth in the following provisions of this...
• Section 7799.3 - Pooled Trusts For Individuals With Disabilities
  (a) Scope.--This section relates to pooled trusts. (b) Organization of pooled trust.-- (1) A pooled trust shall be administered by a trustee governed by...

Last modified: October 8, 2016