Trusts in Pennsylvania
Trusts are powerful estate planning tools that can avoid probate, protect assets, and provide for beneficiaries with specific needs. PA trust law is governed by 20 Pa. Cons. Stat. Ann. Chapter 77 (PA Uniform Trust Act).
Types of Trusts
Revocable Living Trust
Avoids ProbateGrantor retains control during lifetime. Avoids probate. Becomes irrevocable at death. Funded by transferring assets into trust during lifetime.
Irrevocable Trust
Avoids ProbateCannot be modified or revoked. Removes assets from grantor’s estate for tax purposes. Used for asset protection and Medicaid planning.
Testamentary Trust
Subject to ProbateCreated by will, takes effect at death. Subject to probate and court oversight.
Special Needs Trust
Avoids ProbatePreserves beneficiary’s eligibility for government benefits (SSI, Medicaid). Must comply with federal requirements.
Spendthrift Trust
Avoids ProbateProtects trust assets from beneficiary’s creditors. PA recognizes spendthrift provisions.
Trust vs. Will Comparison
| Feature | Trust | Will |
|---|---|---|
| Avoids Probate | ||
| Effective During Lifetime | ||
| Privacy (Not Public Record) | ||
| Incapacity Planning | ||
| Court Oversight | ||
| Lower Upfront Cost | ||
| Requires Funding/Retitling | ||
| Names Guardian for Minors |
Funding a Trust
An unfunded trust is useless. The most common mistake is creating a trust but failing to transfer assets into it. Assets not titled in the trust’s name will still go through probate.
Real Estate
Record a new deed transferring property to the trust name
Bank Accounts
Change account ownership or registration to trust name
Investment Accounts
Re-register brokerage accounts in trust name
Vehicles
Transfer title to trust (may affect insurance—check with carrier)
Life Insurance
Change beneficiary to trust (if intended) or leave as-is for direct transfer
Business Interests
Assign LLC/partnership interests via amendment to operating agreement
When a Trust May Not Be Necessary
Not every estate needs a trust. Consider whether simpler tools accomplish your goals:
- Small estates under $50,000 qualify for simplified probate
- Assets with beneficiary designations (life insurance, retirement accounts) already bypass probate
- Joint ownership with right of survivorship transfers automatically
- TOD/POD registrations on bank and brokerage accounts achieve the same result
Legal Disclaimer
Notice: Estate administration and planning involve complex legal, tax, and fiduciary considerations. This information is provided for educational purposes. Consult with a licensed attorney and tax professional for guidance specific to your situation.
Content prepared under the supervision of a PA licensed attorney. Last updated April 2026.