To Open PDF - Joint State Government Commission

(ii) all the qualified beneficiaries consent in writing to the resignation.
(2) This subsection shall not authorize the sole trustee of a trust to resign unless
the trust instrument names a successor trustee or provides a method for appointing a
successor trustee, and in either case the resignation shall not be effective until the
successor trustee accepts the appointment in writing.]
(a.1) General rule.--A trustee may resign:
(1) with court approval;
(2) without court approval if authorized to resign by the trust instrument; or
(3) pursuant to a nonjudicial settlement agreement described in section 7710.1
(relating to nonjudicial settlement agreements - UTC 111).
* * *
Pennsylvania Comment
Among the matters that all beneficiaries and trustees of a trust
may resolve by a nonjudicial settlement agreement described in
section 7710.1 is the resignation of a trustee. Former § 7765(a)
allowed individual trustees to resign on conditions that are routinely
addressed in a nonjudicial, or “family,” settlement agreement but did
not allow corporate trustees to resign without permission in the trust
instrument or approval by the court. That distinction has been
removed.
Section 7780.3 of Title 20 of the Pennsylvania Consolidated Statutes is
amended by adding a subsection to read:
§ 7780.3. Duty to inform and report.
* * *
(k.1) Nomination by current beneficiary.--A current beneficiary of a trust who has
capacity may nominate another person to receive, on behalf of the current beneficiary, the
- 26 -