Best Trusts Lawyers in Pennsylvania

About Trusts Law in Pennsylvania, United States

A trust is a legal arrangement where one party, known as the trustee, holds and manages property or assets for the benefit of another, called the beneficiary. In Pennsylvania, trusts are commonly used as essential estate planning tools to direct how assets are managed and distributed both during a person’s lifetime and after their death. Trusts are governed by specific Pennsylvania statutes and case law, and can offer advantages such as probate avoidance, asset protection, and potential tax benefits.

Why You May Need a Lawyer

There are several situations where consulting a lawyer experienced in Pennsylvania trust law is highly recommended. Common reasons include:

• Establishing a new trust, such as a revocable living trust, irrevocable trust, or special needs trust.
• Administering an existing trust, ensuring compliance with Pennsylvania law and the trust’s terms.
• Modifying, amending, or terminating a trust due to changing family circumstances or financial needs.
• Providing advice on asset protection or minimizing potential estate or inheritance taxes.
• Helping with disputes among trustees or beneficiaries, such as claims of mismanagement or breach of fiduciary duty.
• Guidance for trustees on their legal obligations to avoid personal liability.
• Ensuring trusts are properly funded so assets are protected as intended.
• Addressing unique circumstances, such as beneficiary disabilities or blended families.

Local Laws Overview

Trusts in Pennsylvania are primarily governed by the Pennsylvania Uniform Trust Act (20 Pa.C.S. § 7701 et seq.). Here are some key highlights relevant to trusts in Pennsylvania:

• Trusts must have a clear purpose, identifiable assets, and named beneficiaries and trustee(s).
• Pennsylvania recognizes both revocable and irrevocable trusts, each with distinct legal implications.
• Revocable trusts can be changed or revoked by the creator at any time, while irrevocable trusts typically cannot be altered once established.
• Trustees have a fiduciary duty to act in the best interest of the beneficiaries and to follow the instructions of the trust document and state law.
• Pennsylvania courts can intervene if there is a dispute or if guidance is needed regarding administration.
• Trusts may be subject to state and federal taxes, and certain reporting requirements must be satisfied.
• The Rule Against Perpetuities limits how long some trusts may last, but certain exceptions apply under Pennsylvania law.
• Trusts are often used to help avoid or simplify the probate process but must be properly funded to do so.

Frequently Asked Questions

What is the difference between a revocable and an irrevocable trust?

A revocable trust can be changed or cancelled at any time by the person who created it, whereas an irrevocable trust normally cannot be changed or terminated after it is signed, except under specific circumstances allowed by law or with court approval.

Do I need a trust if I already have a will?

A will directs how your assets are distributed after death, but does not help avoid probate. A trust can help manage assets during life, provide privacy, avoid probate, and may offer other protections that a will does not.

What types of assets can be placed into a trust?

Most types of property can be placed in a trust, including real estate, bank accounts, investments, business interests, and personal property. Some retirement accounts require special handling.

Who should serve as a trustee?

The creator of the trust can serve as trustee, or a third party such as a trusted family member, friend, attorney, or professional institution can take on this role. Trustees must be trustworthy and capable of handling financial and legal responsibilities.

How are trusts taxed in Pennsylvania?

Trusts may be subject to federal income tax, Pennsylvania income tax, and possibly Pennsylvania inheritance tax, depending on the type of trust, its income, and distributions. A lawyer or tax advisor can provide guidance tailored to your circumstances.

Can a trust protect my assets from creditors?

Irrevocable trusts generally provide more protection from creditors than revocable trusts. However, there are exceptions, especially if the trust was created to defraud creditors. Legal advice is essential for effective asset protection.

What does "funding a trust" mean?

Funding a trust means transferring ownership of your assets into the name of the trust. Assets not formally transferred into the trust may not be covered by its terms.

What happens if a trustee fails to fulfill their duties?

Trustees are held to high fiduciary standards. Beneficiaries can seek court intervention, removal of the trustee, or damages if the trustee breaches their duties.

Does a trust need to be filed with the Pennsylvania court?

A trust itself does not have to be filed with the court when created, but certain documents may be submitted if a dispute arises or court supervision is required during administration.

Can I change the beneficiaries of a trust?

You can change the beneficiaries of a revocable trust while you are alive and competent. Changes to irrevocable trusts are much more limited and often require court approval or consent of all beneficiaries.

Additional Resources

For further information on trusts in Pennsylvania, consider the following resources:

• Pennsylvania Bar Association
• Office of the Register of Wills in your county
• Pennsylvania Department of Revenue - Inheritance Tax Division
• Local legal aid organizations or elder law clinics
• Law libraries at county courthouses or universities

Next Steps

If you are considering creating, administering, or contesting a trust in Pennsylvania, it is wise to seek professional legal advice. Start by gathering relevant documents and making a list of your questions and concerns. Then, contact a Pennsylvania-licensed attorney who focuses on estate planning or trusts. Many lawyers offer initial consultations, so use this meeting to discuss your options and understand any potential risks or benefits. Remember, trusts are complex legal instruments, and working with a knowledgeable attorney can help ensure your interests and those of your loved ones are protected according to state law.