PENNSYLVANIA’S NEW UNIFORM TRUST ACT
by
Richard V. Grimes

Pennsylvania’s new Uniform Trust Act (“UTA”) became effective regarding trusts on November 6, 2006 and repealed Pennsylvania’s Rule Against Perpetuities regarding interests that become irrevocable after December 31, 2006.  The UTA, Act No. 98 of 2006, creates an entirely new chapter (Chapter 77) of the Pennsylvania Probate, Estates and Fiduciaries Code (“PEF Code”) and makes sweeping changes relating to trusts.

The most significant change is that trusts are now treated more like Wills in many respects.  The legal capacity to write a Will is the same as that for writing a Trust, consequently the validity of a revocable trust can be challenged like a Will.  A trustee is now required to provide certain information to the beneficiaries of the trust after the death of the Settlor, even if they do not request it, and must promptly respond to a beneficiary’s reasonable request for additional information.

The rights of creditors has been expanded as to claims against not only the Settlor but also the beneficiaries.  The powers and duties of the Trustee are defined in more detail and the beneficiaries can now select a qualified, successor Trustee without court approval if the named Trustee resigns. There are also new provisions under the UTA for the modification and termination of charitable trusts.

For further information contact Richard V. Grimes, Jr. of the Estates department.