2010 Pennsylvania Code
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 77 - Trusts
7780.6 - Illustrative powers of trustee.

     § 7780.6.  Illustrative powers of trustee.
        (a)  Listing.--The powers which a trustee may exercise
     pursuant to section 7780.5 (relating to powers of trustees - UTC
     815) include the following powers:
            (1)  To accept, hold, invest in and retain investments as
        provided in Chapter 72 (relating to prudent investor rule).
            (2)  To pay or contest a claim; settle a claim by or
        against the trust by compromise, arbitration or otherwise;
        and release, in whole or in part, any claim belonging to the
        trust.
            (3)  To resolve a dispute regarding the interpretation of
        the trust or the administration of the trust by mediation,
        arbitration or other alternative dispute resolution
        procedures.
            (4)  To prosecute or defend actions, claims or
        proceedings for the protection of trust assets and of the
        trustee in the performance of the trustee's duties.
            (5)  To abandon or decline to administer any property
        which is of little or no value, transfer title to abandoned
        property and decline to accept title to and administer
        property which has or may have environmental or other
        liability attached to it.
            (6)  To insure the assets of the trust against damage or
        loss and, at the expense of the trust, protect the trustee,
        the trustee's agents and the beneficiaries from liability to
        third persons arising from the administration of the trust.
            (7)  To advance money for the protection of the trust and
        for all expenses, losses and liability sustained in the
        administration of the trust or because of the holding or
        ownership of any trust assets. The trustee has a lien on the
        trust assets as against the beneficiary for an advance under
        this paragraph, including interest on the advance.
            (8)  To pay taxes, assessments, compensation of the
        trustee and employees and agents of the trustee and other
        expenses incurred in the administration of the trust.
            (9)  To receive additions to the assets of the trust.
            (10)  To sell or exchange any real or personal property
        at public or private sale, without obligation to repudiate an
        otherwise binding agreement in favor of better offers. If the
        trustee has been required to give bond, no proceeds of the
        sale of real estate, including proceeds arising by the reason
        of involuntary conversion, shall be paid to the trustee
        until:
                (i)  the court has made an order excusing the trustee
            from entering additional security; or
                (ii)  the court has made an order requiring
            additional security and the trustee has entered the
            additional security.
            (11)  To enter for any purpose into a lease as lessor or
        lessee with or without option to purchase or renew for a term
        within or extending beyond the term of the trust.
            (12)  To grant options for sales or leases of a trust
        asset and acquire options for the acquisition of assets,
        including options exercisable after the trust terminates.
            (13)  To join in any reorganization, consolidation,
        merger, dissolution, liquidation, voting trust plan or other
        concerted action of securityholders and to delegate
        discretionary duties with respect thereto.
            (14)  To vote a security, in person or by general or
        limited proxy, with or without power of substitution.
            (15)  To borrow funds and mortgage or pledge trust assets
        as security for repayment of the funds borrowed, including
        repayments after the trust terminates.
            (16)  To make loans to and buy property from the personal
        representatives of the settlor and the settlor's spouse.
        Loans under this paragraph shall be adequately secured, and
        the purchases under this paragraph shall be for fair market
        value.
            (17)  To partition, subdivide, repair, improve or develop
        real estate; enter into agreements concerning the partition,
        subdivision, repair, improvement, development, zoning or
        management of real estate; impose or extinguish restrictions
        on real estate; dedicate land and easements to public use;
        adjust boundaries; and do anything else regarding real estate
        which is commercially reasonable or customary under the
        circumstances.
            (18)  With respect to possible liability for violation of
        environmental law:
                (i)  to inspect or investigate property the trustee
            holds or has been asked to hold or property owned or
            operated by an organization in which the trustee holds or
            has been asked to hold an interest, for the purpose of
            determining the application of environmental law with
            respect to the property;
                (ii)  to take action to prevent, abate or otherwise
            remedy any actual or potential violation of environmental
            law affecting property held directly or indirectly by the
            trustee, whether taken before or after the assertion of a
            claim or the initiation of governmental enforcement;
                (iii)  to decline to accept property into trust or
            disclaim a power with respect to property that is or may
            be burdened with liability for violation of environmental
            law;
                (iv)  to compromise claims against the trust which
            may be asserted for an alleged violation of environmental
            law; and
                (v)  to pay the expense of inspection, review,
            abatement or remedial action to comply with environmental
            law.
            (19)  To operate, repair, maintain, equip and improve any
        farm or farm operation; to purchase and sell livestock,
        crops, feed and other property that is normally perishable;
        and to purchase, use and dispose of farm equipment and employ
        one or more farm managers and others in connection with farm
        equipment and pay them reasonable compensation.
            (20)  To make ordinary or extraordinary repairs or
        alterations in buildings or other structures; demolish
        improvements; and raze existing or erect new party walls or
        buildings.
            (21)  To enter into a lease or arrangements for
        exploration and removal of minerals or other natural
        resources or enter into a pooling or unitization agreement.
            (22)  To exercise all rights and incidents of ownership
        of life insurance policies held by the trust, including
        borrowing on policies, entering into and terminating split-
        dollar plans, exercising conversion privileges and rights to
        acquire additional insurance and selecting settlement
        options.
            (23)  To employ a custodian; hold property unregistered
        or in the name of a nominee, including the nominee of any
        institution employed as custodian, without disclosing the
        fiduciary relationship and without retaining possession and
        control of securities or other property so held or
        registered; and pay reasonable compensation to the custodian.
            (24)  To apply funds distributable to a beneficiary who
        is, in the trustee's opinion, disabled by illness or other
        cause and unable properly to manage the funds directly for
        the beneficiary's benefit or to pay such funds for
        expenditure on the beneficiary's behalf to:
                (i)  the beneficiary;
                (ii)  a guardian of the beneficiary's estate;
                (iii)  an agent acting under a general power of
            attorney for the beneficiary; or
                (iv)  if there is no agent or guardian, a relative or
            other person having legal or physical custody or care of
            the beneficiary.
            (25)  To pay funds distributable to a minor beneficiary
        to the minor or to a guardian of the minor's estate or to
        apply the funds directly for the minor's benefit.
            (26)  To do any of the following:
                (i)  Pay any funds distributable to a beneficiary who
            is not 21 years of age or older to:
                    (A)  the beneficiary;
                    (B)  an existing custodian for the beneficiary
                under Chapter 53 (relating to Pennsylvania Uniform
                Transfers to Minors Act) or under any other state's
                version of the Uniform Transfers to Minors Act;
                    (C)  an existing custodian for the beneficiary
                under the former Pennsylvania Uniform Gifts to Minors
                Act or under any other state's version of the Uniform
                Gifts to Minors Act; or
                    (D)  a custodian for the beneficiary appointed by
                the trustee under Chapter 53.
                (ii)  Apply the funds for the beneficiary.
            (27)  To pay calls, assessments and other sums chargeable
        or accruing against or on account of securities.
            (28)  To sell or exercise stock subscription or
        conversion rights.
            (29)  To continue or participate in the operation of any
        business or other enterprise and to effect incorporation,
        merger, consolidation, dissolution or other change in the
        form of the organization of the business or enterprise.
            (30)  To select a mode of payment under a qualified
        employee benefit plan or a retirement plan payable to the
        trustee and exercise rights under the plan.
            (31)  To distribute in cash or in kind or partly in each
        and allocate particular assets in proportionate or
        disproportionate shares.
            (32)  To appoint a trustee to act in another jurisdiction
        with respect to trust property located in the other
        jurisdiction, confer upon the appointed trustee all the
        powers and duties of the appointing trustee, require that the
        appointed trustee furnish security and remove the appointed
        trustee.
            (33)  To execute and deliver instruments which will
        accomplish or facilitate the exercise of the trustee's
        powers.
        (b)  Effect.--The trustee shall have no further
     responsibility or liability for funds upon any of the following:
            (1)  Payment under subsection (a)(24).
            (2)  Payment under subsection (a)(25).
            (3)  Payment or application under subsection (a)(26).

        Cross References.  Section 7780.6 is referred to in section
     7790.2 of this title.