2010 Pennsylvania Code
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 77 - Trusts
7755 - Claims and distribution after settlor's death.

     § 7755.  Claims and distribution after settlor's death.
        (a)  Creditors' rights.--Creditors of the settlor of a
     revocable trust shall have the same rights against the trust
     assets determined immediately before the settlor's death as they
     have against the settlor's estate, but the assets of the
     settlor's estate shall be applied first toward satisfaction of
     the creditors' claims. This subsection shall not expose to
     creditors' claims trust assets for which other provisions of
     substantive law provide exemption from the claims of the
     settlor's creditors.
        (b)  Enforcement of claim against revocable trust.--A
     creditor may make a claim against a revocable trust by notifying
     the settlor's personal representative as provided in section
     3384 (relating to notice of claim) or, if no personal
     representative has been appointed, by notifying the trustee
     according to the methods set forth in section 3384. A personal
     representative who receives notice shall within 20 days notify
     the trustee in writing and upon doing so shall have no liability
     under this section to the creditor.
        (c)  No personal representative.--If no personal
     representative is appointed within 90 days after the settlor's
     death, the trustee shall advertise the trust's existence and the
     name and address of the trustee in the manner set forth in
     section 3162 (relating to advertisement of grant of letters).
        (d)  Liability of personal representative.--A personal
     representative who has received the notice required by section
     7780.3(c) (relating to duty to inform and report) and does not
     notify the trustee of a revocable trust of a creditor's claim
     known to the personal representative within one year after the
     first complete advertisement of the grant of letters to the
     personal representative shall be liable to the creditor to the
     extent the creditor's interest is prejudiced thereby. A personal
     representative shall have no liability under this section to a
     creditor whose claim is not known to the personal representative
     within one year after the first complete advertisement of the
     grant of letters to the personal representative. The provisions
     of this section shall not affect the liability of the settlor's
     personal representative under other provisions of law.
        (e)  Liability to any creditor.--At the trustee's own risk
     and without the filing, audit or confirmation of the trustee's
     account, a trustee of a revocable trust who has either given the
     settlor's personal representative the notice required by section
     7780.3(c) or given the notice required by subsection (c) may
     distribute real or personal property of the revocable trust.
     That distribution shall be without liability to any creditor of
     the settlor unless the claim of that creditor is known to the
     trustee within 13 months after the first complete advertisement
     of the grant of letters to the personal representative or, if no
     personal representative has been appointed, within one year
     after the first complete advertisement under subsection (c).
        (f)  Rights of creditors against distributed property.--
            (1)  No creditor shall have any claim against personal
        property distributed by the trustee of a revocable trust at
        the trustee's own risk under subsection (e) unless the claim
        of the creditor is known to the trustee within 13 months
        after the first complete advertisement of the grant of
        letters to the personal representative or, if no personal
        representative has been appointed, within one year after the
        first complete advertisement of the trust under subsection
        (c).
            (2)  No creditor shall have any claim against real
        property distributed by the trustee of a revocable trust at
        the trustee's own risk under subsection (e) unless the
        creditor, within one year after the settlor's death, files a
        written notice of claim with the clerk. The claim against
        real property shall expire at the end of five years after the
        settlor's death unless within that time the trustee files an
        account or the creditor files a petition to compel an
        accounting.
        (g)  Judicial principles.--In any proceeding by a creditor
     against a trustee or beneficiary of a revocable trust, the court
     shall apply principles analogous to:
            (1)  section 3387 (relating to claims not due; certain to
        become due);
            (2)  section 3388 (relating to claims not certain to
        become due);
            (3)  section 3392 (relating to classification and order
        of payment); and
            (4)  section 3393 (relating to notice to Commonwealth and
        political subdivisions).