Pennsylvania Living Trust Form (Revocable)

1. Competent: The grantor must have the capacity to create a trust.
2. Intent: The grantor must indicate in a written and signed document their intention to create a trust.
3. Definite Beneficiary: The trust, unless it is a charitable trust or a trust for the care of an animal, must have a definite beneficiary.
4. Trustee’s Duties: The trustee must have duties to perform.
5. Sole Trustee Cannot be the Sole Beneficiary: The same person cannot be the sole trustee and the sole beneficiary of the trust.^[1]

Amending/Revoking – Unless the terms of the trust specifically state that it is irrevocable, the grantor may revoke or amend the trust.^[2]

Bond Requirement – The trustee is only required to put forward a bond if this has been deemed necessary by the court to protect the beneficiaries’ interests or if this is a requirement under the terms of the trust instrument.^[3]

Certification of Trust – In lieu of a copy of the trust instrument, the trustee may furnish a non-beneficiary with a certification of trust containing information that includes the identity of the grantor, the date the instrument was executed, and other details.^[4]

Co-Trustees – Co-trustees who do not reach a unanimous decision may act by majority decision.^[5]

Contesting a Trust – A petition to contest the validity of a trust must be commenced no later than one year after the trustee has given notice of the grantor’s death.^[6]

Costs Related to the Trust – In administering the trust, the trustee may only incur costs that are reasonable in relation to the trust’s property, its purposes, and the trustee’s skills.^[7]

Jurisdiction – A written trust created in another jurisdiction is considered valid in Pennsylvania if its creation complied with the laws of the jurisdiction in which the trust instrument was executed.^[8]

Oral Trusts – Oral trusts are unenforceable in Pennsylvania.^[9]

Pet Trusts – Trusts created to provide for the care of one or more animals alive during the grantor’s lifetime are valid. The trust terminates upon the death of the last surviving animal covered by the terms of the trust.^[10]

Signing Requirements – The grantor must sign the written trust instrument establishing the trust,^[11] unless it is signed by mark or by another person acting at the grantor’s direction and on their behalf.^[12]

Spendthrift Provision – A spendthrift provision is only considered valid if it restrains both the voluntary and involuntary transfer of a beneficiary’s interest.^[13]

Trustee’s Compensation – If the trustee’s compensation is not specified in the terms of the trust instrument or a separate written agreement signed by the grantor, the trustee is otherwise entitled to compensation that is reasonable under the circumstances.^[14]

Trustee’s Duties – The trustee has a duty to prudently administer the trust in good faith, in accordance with its provisions, and in the interests of the beneficiaries.^[15]

Trustee’s Powers – The trustee’s powers include the power to hold, invest in, and retain investments, pay or accept claims, sell or exchange property, accept additions to trust property, and other powers that may be used to achieve the trust’s aims.^[16]