Pennsylvania Trust Guide (Includes book + digital download)
Bisel Publishing
A Handbook for Trustees and Their Advisors
Fifth Edition
1 Volume, Soft-Cover
AUTHORS: JULIEANNE E. STEINBACHER, ESQ., SAMANTHA K. WOLFE, ESQ. and JENNA L. FRANKS, ESQ.
Published: January, 2023 (5th Ed.) (Previous Editions: 2008, 2010 & 2014, 2018); $269
Library of Congress Control Number: 2008935708
ISBN: 979-8-9858848-3-8
The idea behind this title was to create a practical guide for those in the profession who practice trust law, fund trusts, or advise trustees. With that in mind, the authors compiled a publication that allows a practitioner to examine the applicable statutes, benefit from practice tips, and read a synopsis of pertinent points. When applicable, the authors added examples to illustrate the law and sample forms to aid the practitioner.
This title focuses on the changes brought about Pennsylvania's Uniform Trust Act. These modifications must be understood by a practitioner who is establishing and funding trusts or advising trustees. Please review the Detailed Table of Contents below. All in all, this title is a combination of statutory and case law analysis, and practical considerations and forms.
As part of your subscription to PA Trust Guide, you can access the ebook through the Bisel website. The ebook now has links to statutes, rules, regulations, and full court opinions. Just click on the links for immediate access to the up-to-date law.
TABLE OF CONTENTS
Chapter 1: PENNSYLVANIA’S UNIFORM TRUST ACT
1.1. Introduction
1.2. Definitions
1.3. “Default” and Mandatory Rules
1.4. Creditors’ Claims and Spendthrift Provisions
1.5. Notice and Reporting Requirements
1.6. Statute of Limitations
1.7. Special Rules for Revocable Trusts
1.8. Creation and Validity of Trusts
1.9. Bond
1.10. Representation and Non-Judicial Settlements
1.11. Trustee Compensation
1.12. Removal of Trustee
1.13. Trust Modification or Termination
1.14. Liability of the Trustee
1.15. Liability of Persons Dealing with the Trustee
1.16. Repeal of Rule Against Perpetuities
1.17. Conclusion
Chapter 2: PENNSYLVANIA’S PRUDENT INVESTOR RULE
2.1. Introduction
2.2. To Whom Does the Prudent Investor Rule Not Apply?
2.3. To Whom Does the Prudent Investor Rule Apply?
2.4. What Is the Prudent Investor Rule?
2.5. Duty to Diversify
2.6. No Duty to Diversify
2.7. Retention of Inception Assets
2.8. Delegation of Investment and Management Functions
2.9. Delegation to a Cofiduciary
2.10. Retention of Uninvested Cash and Temporary Investments
2.11. Life Insurance
2.12. Mutual Funds
2.13. Degree of Care
2.14. Evaluation of a Fiduciary’s Decisions
Chapter 3: PENNSYLVANIA UNIFORM PRINCIPAL AND INCOME ACT
3.1. Introduction
3.2. Definitions Under the Pennsylvania Uniform Principal and Income Act—§ 8102
3.3. To Whom Does the Pennsylvania Uniform Principal and Income Act Apply?—§ 8102
3.4. When Does the Pennsylvania Uniform Principal and Income Act Apply?—§ 8103
3.5. Trustee’s Power to Adjust—§ 8104(a) and (b)
3.6. Trustee’s Power to Convert to a Unitrust—§ 8105
Chapter 4: TYPES OF TRUSTS
4.1. Introduction
4.2. Trusts, Generally
4.3. Revocable Trusts
4.4. Testamentary Trusts
4.5. Testamentary Trusts
4.6. Inter Vivos Trusts
4.7. Special Needs Trusts/Supplemental Needs Trusts
4.8. Education Trusts
4.9. Charitable Trusts
4.10. Trusts for Care of an Animal
4.11. Spendthrift Trusts
4.12. Credit Shelter Trusts
4.13. Trust for Minors
4.14. Trusts for Unknown Owners of Oil and Gas Interests
4.15. Standby Guardianship
Chapter 5: A CLOSER LOOK AT SPECIAL NEEDS TRUSTS
5.1. Introduction
5.2. Three Types of Special Needs Trusts
5.3. Supplemental Security Income
5.4. Purposes of a Special Needs Trust
5.5. Home Ownership
5.6. Guidelines for Administering a Special Needs Trust
5.7. Sections of the Social Security Administration’s Program Operations Manual System
Appendix 5.A. Bills S.349 September 10, 2015
Appendix 5.B. Policy Clarification for Trusts
Appendix 5.C. PA HB 1319
Appendix 5.D. Appendix 5.D. H.R. 4813
Appendix 5.E. Appendix 5.D. H.R. 4794
Appendix 5.F. Appendix 5.D. H.R. 4795
Chapter 6: PRACTICAL CONSIDERATIONS FOR ESTABLISHING A TRUST
6.1. Capacity
6.2. Requirements for Creating a Trust
6.3. Power to Create a Trust
6.4. Contesting the Validity of a Trust
6.5. Choosing a Trustee
6.6. Powers of the Trustee
6.7. Miscellaneous Provisions
6.8. Trust Protectors
Appendix 6.A. Senate Bill on Digital Assets
Chapter 7: PRACTICAL CONSIDERATIONS FOR FUNDING A TRUST
7.1. Introduction
7.2. Getting Started
7.3. Real Estate
7.4. Annuity Contracts
7.5. Bank Accounts
7.6. Brokerage Accounts
7.7. Individual Retirement Accounts
7.8. Life Insurance Policies
7.9. Mutual Funds
7.10. Savings Bonds
7.11. Stocks
7.12. Beneficiary Designations
7.13. Income
7.14. Funding by an Agent Under a Power of Attorney
7.15. Tracking Trust Funding
7.16. Pennsylvania Uniform Fraudulent Transfers Act
Appendix 7.A. Authorization for Release of Financial Information
Appendix 7.B. Power of Attorney Letter of Certification
Appendix 7.C. Asset List
Appendix 7.D. Letter of Instruction to Transfer a Bank Account
Appendix 7.E. Letter of Instruction to Transfer a Brokerage Account
Appendix 7.F. Cover Letter to Transfer Stock
Appendix 7.G. Letter of Instruction to Transfer Stock
Appendix 7.H. Request for Information—Life Insurance and Annuity
Appendix 7.I. Fax Cover Sheet Requesting Information
Appendix 7.J. Trust Funding Status Sheet
Appendix 7.K. Trust Funding Tracking Sheet
Appendix 7.L. Funding Your Trust
Appendix 7.M. Letter to IRA Plan Administrator
Appendix 7.N. Attachment for Change of Beneficiary Form
Appendix 7.O. Chart of Beneficiary Designations
Appendix 7.P. Authorization for Release of Financial Information for Trustee
Chapter 8: CONSIDERATIONS FOR TRANSFERRING REAL ESTATE TO OR FROM A TRUST
8.1. What Information Should Be Included in the Deed?
8.2. Use of Quitclaim Deeds in Conveying Real Estate to a Trust
8.3. Realty Transfer Tax Liability for the Conveyance of Real Estate to a Trust
8.4. Realty Transfer Tax Liability for the Conveyance of Real Estate from a Trust
8.5. Transferring Real Estate to a Trust Via a Power of Attorney or Guardianship
Appendix 8.A. Explanation to Facilitate Reading of Legislative Bills
Appendix 8.B. House Bill No. 1429
Appendix 8.C. Pennsylvania Powers of Attorney Statute
Appendix 8.D. Senate Bill No. 1104
Chapter 9: PRACTICAL CONSIDERATIONS FOR SERVING AS TRUSTEE
9.1. Introduction
9.2. Trustee’s Powers
9.3. Trustee’s Responsibilities
9.4.Trustee’s Duty to Inform and Report
Chapter 10: REFORMING, TERMINATING, AND AMENDING TRUSTS
10.1. Introduction
10.2. Trust Termination
10.3. Trust Modification or Termination
10.4. Modification Without Consent of Settlor
10.5. Revocable Trust Amendment
10.6. Division of a Trust
10.7. Decanting a Trust
Chapter 11: TAXATION OF TRUSTS
11.1. Grantor Versus Non Grantor Trusts
11.2. Income Taxation of Trusts
11.3. Capital Gains and Losses
11.4. Grantor Trusts
11.5. Tax Basis
11.6. Pennsylvania Inheritance Taxes
11.7. Federal Estate and Gift Tax
11.8. SECURE Act
Appendix 11.A. 2022 Tax Rate Schedule
Appendix 11.B. Final Regulations for Qualified Business Income Deductions
Appendix 11.C. Notice 2018-64
Appendix 11.D. Excerpt from House Bill 262. 2020 Act 97
Appendix 11.E. Link to Proposed Regulations for the SECURE Act
Chapter 12: TRUST SITUS
12.1. Introduction
12.2. Location of the Trust’s Situs
12.3. Four Key Factors
12.4. Changing the Trust’s Situs
12.5. Choice of Law Clauses
About the Authors:
Julieanne is the President of Estate & Long Term Care Planning, Inc., a company which provides continuing education for the public and professionals in Pennsylvania and coaching for attorneys throughout the nation. She has estates, trusts, and taxation. She also has published materials in various newsletters and newspapers. Julieanne co-authored two books about trusts, Pennsylvania Trust Guide (Edition I and II) and the Pennsylvania Special Needs Planning Guide, both published by George T. Bisel Company, Co., Inc. Most recently, Julieanne joined by nine other leading elder law attorneys from across the nation, co-authored Protect Your Family! Don’t Write a Blank Check to the Nursing Home, a collaborative writing, broken down in layman’s terms, offering readers the essential tools and knowledge for effective long-term care planning. She is also a co-author of Protect Your Legacy! What You Really Need to Know for the Second Half of Life.
Samantha K. Wolfe, Esquire, LL.M. in Taxation:
Samantha has presented continuing education instruction for multiple programs through the Pennsylvania Bar Institute including a program titled "A Fresh Look at FLPs" regarding the use of family limited partnerships in business succession planning; a program titled "What Every Elder Law Attorney Needs to Know About FLPs" addressing whether family limited partnerships are the best planning technique to use when dealing with elder law issues; a program titled "Estate Planning for Oil, Gas, and Mineral Interests"; a program titled "Succession Planning for Your Elder Law Client’s Family Owned Business"; a program titled "Asset Protection for the Middle Class"; a program titled "Post-SECURE" addressing the changes the SECURE Act had on retirement planning, and a program titled "Your Guide to Elder Law". Samantha has also been a speaker for the Pennsylvania Bar Institute, Tax Pro Seminars, Estate & Long Term Care Planning, Inc., and E, DLF Publishing, Inc.
Additionally, Samantha co-authored a book with eighteen other leading elder care attorneys from across the nation titled "Protect Your Legacy! What You Really Need to Know for the Second Half of Life". Samantha co-authored the 2016, 2017, 2018, 2020, 2021, and 2022 supplements to the Pennsylvania Trust Guide (Editions IV and V) published by George T. Bisel Company, Co., Inc.