Core duties · 6 min read
The standard
20 Pa.C.S. §7774 provides that a trustee administers the trust as a prudent person would, considering its purposes, provisions, distribution requirements and other circumstances, and exercising reasonable care, skill and caution. The trustee takes reasonable steps to take control of and protect the trust property (§7779).
Investing
A Pennsylvania trustee accepts, holds, invests in and retains investments under the prudent investor rule of Chapter 72 of Title 20 (20 Pa.C.S. §7780.6(a)(1)). Where a trust's terms appoint a trust director for investments, the director's powers and the directed trustee's protections come from the Directed Trust Act (§§7780.16, 7780.20).
Loyalty and impartiality
A trustee administers the trust solely in the beneficiaries' interests; a transaction affected by a conflict between the trustee's fiduciary and personal interests is voidable by an affected beneficiary unless an exception the statute states applies (20 Pa.C.S. §7772). Where a trust has two or more beneficiaries, the trustee acts impartially, giving due regard to their respective interests (§7773).
Discretion
A trustee exercises a discretionary power in good faith and in accordance with the trust's terms and purposes and the beneficiaries' interests, however broad the discretion the terms grant (20 Pa.C.S. §7780.4). Many trustees write down the facts they weighed before each discretionary decision.
The statutes, verbatim
Duty of loyalty - UTC 802
20 Pa.C.S. §7772 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Prudent administration - UTC 804
20 Pa.C.S. §7774 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Discretionary powers
20 Pa.C.S. §7780.4 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Illustrative powers of trustee
20 Pa.C.S. §7780.6 ↗Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.
Common questions
What standard applies to a Pennsylvania trustee's decisions?
The prudent person standard: reasonable care, skill and caution, considering the trust's purposes, provisions and distribution requirements (20 Pa.C.S. §7774).
How must a Pennsylvania trustee invest?
Under the prudent investor rule of Chapter 72 of Title 20, which governs the power to accept, hold, invest in and retain investments (20 Pa.C.S. §7780.6(a)(1)).
Can a Pennsylvania trustee buy trust property?
A transaction between the trust and the trustee is voidable by an affected beneficiary unless the terms, the court, the beneficiary's consent or another exception in 20 Pa.C.S. §7772 applies.
Related reading
The Learning Center is general information about Pennsylvania law — not legal advice, and not a substitute for advice from a licensed Pennsylvania attorney about your specific facts. TrusteeClear is software, not a law firm.
Frequently asked questions
- What standard applies to a Pennsylvania trustee's decisions?
- The prudent person standard: reasonable care, skill and caution, considering the trust's purposes, provisions and distribution requirements (20 Pa.C.S. §7774).
- How must a Pennsylvania trustee invest?
- Under the prudent investor rule of Chapter 72 of Title 20, which governs the power to accept, hold, invest in and retain investments (20 Pa.C.S. §7780.6(a)(1)).
- Can a Pennsylvania trustee buy trust property?
- A transaction between the trust and the trustee is voidable by an affected beneficiary unless the terms, the court, the beneficiary's consent or another exception in 20 Pa.C.S. §7772 applies.
General information about Pennsylvania law, not legal advice.