Trustee Powers: Disinheriting Beneficiaries In Pennsylvania Law

In Pennsylvania, trustees are required to inform beneficiaries about the existence of the trust and provide certain current information on the trust. Trustees are also responsible for filing a PA-41 Fiduciary Income Tax Return and paying the tax on the taxable income of the trust. While a trustee cannot disinherit a beneficiary, there are specific laws in place regarding the disinheritance of a spouse. In Pennsylvania, a disinherited spouse is still entitled to inherit and claim their elective share, which is set at one-third of the decedent's estate. This raises the question of whether a trustee can disinherit a beneficiary, and what legal options are available to beneficiaries who believe they have been unfairly treated.

Trustee duties to inform beneficiaries about the existence of the trust

In 2006, Pennsylvania adopted the PA Uniform Trust Act, which outlines the duties of a trustee to inform beneficiaries about the existence of the trust. Trustees are required to disclose certain current information about the trust, such as the identity of the grantor and the contact information for the trustee. This information should be provided at least annually in the form of periodic written financial reports.

If you are 18 years or older and the trustee is distributing income or principal, or if you are 25 years or older and the trustee has discretion over current distributions of income or principal, you have the legal right to request this information. If the trustee fails to provide the requested information, they may be in breach of their fiduciary duty. In such cases, you can consider filing a petition to remove them as the trustee.

It is important to note that trustees may ask beneficiaries to waive their notice rights. However, beneficiaries have the right to rescind that waiver in writing at any time. If you have questions or concerns about a trust in Pennsylvania, it is recommended to consult with an experienced trust attorney or seek legal advice from a licensed professional.

Regarding the question of whether a trustee can disinherit a beneficiary in Pennsylvania, it is important to note that the specific laws and regulations regarding trusts and estates may apply. In general, the trustee of a trust has a fiduciary duty to act in the best interests of the beneficiaries. However, the specific terms of the trust document and state laws will dictate the rights and obligations of the trustee and beneficiaries. Consulting with a legal professional who specializes in trust and estate law in Pennsylvania would be advisable to understand your specific rights and options.

The right of beneficiaries to request information from the trustee

In 2006, Pennsylvania adopted the PA Uniform Trust Act, which outlines the rights of beneficiaries to request information from the trustee. This law imposes a duty on trustees to inform beneficiaries about the existence of the trust and provide certain current information on the trust. To be eligible to request information, beneficiaries must be at least 18 years old and receiving income or principal distributions from the trustee, or at least 25 years old with the trustee having discretion over current distributions of income or principal.

If you meet these criteria, you have the legal right to request information from the trustee. As a beneficiary, you are entitled to receive periodic written financial reports concerning the trust at least annually, upon request. This means that you can ask for financial reports from the trustee once a year. It is important to note that trustees may ask beneficiaries to waive their notice rights, but beneficiaries have the right to rescind that waiver in writing at any time.

If a trustee fails to provide the requested information, they may be in breach of their fiduciary duty. In such cases, beneficiaries can consider filing a petition to remove the trustee. Seeking legal assistance from experienced litigation attorneys or estate planning law firms can help navigate these complex situations.

Additionally, trustees have a duty to respond promptly to reasonable requests for information related to the trust's administration from beneficiaries of irrevocable trusts or settlors of trusts. This duty to inform and report is outlined in Pennsylvania's Consolidated & Unconsolidated Statutes, ensuring that beneficiaries have access to relevant information about the trust they are involved with.

The right of disinherited spouses to inherit and claim their elective share

In Pennsylvania, a surviving spouse is entitled to a portion of their deceased spouse's estate, even if they died without a will. This is known as the spousal elective share, and it is protected under Pennsylvania law, which ensures that a surviving spouse cannot be disinherited. This means that even if the decedent intended to disinherit their spouse, the surviving spouse is still entitled to a portion of the estate. The elective share is equal to one-third of the decedent's estate if they had surviving children or one-half of the estate if there are no surviving children.

It is important to note that the elective share only applies to assets that would pass through the decedent's probate estate, and certain assets, such as life insurance policies or retirement accounts with named beneficiaries, may not be subject to the elective share. Additionally, if the decedent left a valid will that provides for the decedent's surviving spouse, the spousal elective share may not apply. In some cases, a surviving spouse may choose to waive their right to the elective share in order to receive a larger portion of non-probate assets or to comply with the decedent's wishes. However, this waiver must be made in writing and signed by the surviving spouse.

The right of a surviving spouse to inherit and claim their elective share in Pennsylvania is outlined in the state's intestate laws, which govern the distribution of a decedent's property in the absence of a will. Under these laws, the surviving spouse's share depends on whether the decedent is survived by parents or children. If the decedent is not survived by parents or children, the surviving spouse is entitled to the entire intestate estate. If there are no surviving children but a parent of the decedent is alive, the surviving spouse is entitled to receive the first $30,000 plus half of the balance of the intestate estate. If there are surviving children who are also the issue of the surviving spouse, the surviving spouse is again entitled to receive the first $30,000 plus half of the balance. However, if there are surviving children any one of whom are not also the issue of the surviving spouse, the surviving spouse is entitled to receive only half of the intestate estate.

It is important for individuals to work with an experienced attorney to create a comprehensive estate plan that protects their loved ones and ensures that their wishes are carried out after their death. By creating a will or trust, individuals can determine how their estate will be distributed and name guardians for minor children. Additionally, prenuptial and postnuptial agreements can be utilized to address property rights in the event of divorce or death.

The right of disinherited spouses to receive jointly owned property

In Pennsylvania, a surviving spouse is entitled to a portion of their deceased spouse's estate, even if the deceased did not leave a will. This is known as the spousal elective share. The elective share is equal to one-third of the decedent's estate if they had surviving children, or one-half if there are no surviving children. This means that even if the decedent intended to disinherit their spouse, the surviving spouse can still claim their elective share.

The elective share will only be paid if the surviving spouse claims it within six months of the Testator's death or the date of probate, whichever is later. The disinherited spouse must notify the Orphans' Court and the Executor or Administrator of their intention to claim an elective share, in writing. When determining how to pay the elective share, the Orphans' Court will attempt to honor the Testator's will as much as possible. For instance, if there is a specific gift in the will and there are sufficient assets to pay the elective share without using that gift, the beneficiary of the gift will likely still receive it. If there is not enough probate property to satisfy the full amount of the elective share, all of the remaining probate property is subject to the claim, and any gifts or bequests will be reduced proportionately to pay the remaining balance.

In the case of a valid last will and testament, the terms of the document must be followed for any spouse or child to receive an inheritance. In Pennsylvania, the surviving spouse is generally entitled to receive at least one-third of the decedent's estate if there are descendants of both spouses that survive them; otherwise, they can receive up to one-half. Minor children may also receive an inheritance unless specifically excluded by their parent's will, though it is important to note that any inherited property held jointly with another person (including a surviving spouse) cannot be given away except through court approval.

Dying without a will means a person dies intestate, and the distribution of assets is determined by state law. This can result in an unintended distribution of assets that may not align with the decedent's wishes. In such cases, the distribution of a decedent's property is determined by Pennsylvania's intestacy laws.

The process to claim an elective share

In Pennsylvania, a trustee is legally required to inform beneficiaries about the existence of the trust and provide current information on it. If you are at least 18 years old and the trustee is distributing income or principal, or you are at least 25 years old and the trustee has discretion over current distributions of income or principal, you have the legal right to request information from the trustee.

Now, to answer your question about the process to claim an elective share:

In Pennsylvania, a surviving spouse has the right to choose between what is left to them by the deceased spouse or to choose an elective share of the decedent spouse's property. This means that if a surviving spouse was intentionally or unintentionally disinherited in a deceased spouse's will, or the deceased spouse left less than one-third of the estate to the surviving spouse, the surviving spouse may choose to claim an elective share of the estate instead. This elective share must be claimed within six months of the decedent's death or from the date probate began when the will was filed with the Register of Wills in the county where the decedent was domiciled. The election must be made in writing and submitted to the clerk of the court in the Pennsylvania county where the probate is being administered.

It is important to note that the elective share refers to one-third of the decedent spouse's estate, but not all property will be included in the calculation. For instance, life insurance policy proceeds, retirement and deferred compensation plans, and any transfers of property that the surviving spouse expressly provided consent to are excluded. By choosing the elective share, the surviving spouse waives the right to pursue other items they may have otherwise been entitled to.

Additionally, the elective share can be waived in a prenuptial or postnuptial agreement, provided that the agreement is properly executed to be valid.

Frequently asked questions