20 Pa.C.S. Ch. 61

20 Pa.C.S. Ch. 61
in effect

20 Pa.C.S. § 6101 Definitions.

The following words and phrases, when used in this chapter, unless the context clearly indicates otherwise, shall have the meanings ascribed to them in this section: "Charity" or "charitable purposes." (Deleted by amendment). "Conveyance." An act by which it is intended to create an interest in real or personal property whether the act is intended to have inter vivos or testamentary operation. It shall include an act by which a power of appointment whenever given is exercised. (Apr. 18, 1978, P.L.42, No.23, eff. 60 days; July 7, 2006, P.L.625, No.98, eff. 120 days)

20 Pa.C.S. § 6102 Termination of trusts (Deleted by amendment).

2006 Amendment. Section 6102 was deleted by amendment July 7, 2006, P.L.625, No.98, effective in 120 days.

20 Pa.C.S. § 6103 Release or disclaimer of powers or interests (Repealed).

2016 Repeal. Section 6103 was repealed July 8, 2016, P.L.497, No.79, effective January 1, 2017.

20 Pa.C.S. § 6103.1 Release of powers and interests and disclaimer of powers.

(a) Interests releasable.-- (1) Subject to paragraph (2), an interest in property that has been accepted may be released. (2) An income interest in a spendthrift trust may be released only if the released income passes to one or more of the releasor's descendants. (b) Effect of release of interest.--A releasor of an interest in property shall be treated as having died at the time of the release for purposes of determining and accelerating the interests of other parties in the property. (c) Nonfiduciary powers disclaimable or releasable.--A power of appointment, power of withdrawal or other power held in a nonfiduciary capacity may be disclaimed prior to its acceptance or released after its acceptance. (d) Terms of disclaimer or release.--A release of a power or interest or a disclaimer of a power under this section may: (1) Be absolute or conditional. (2) Be made with respect to the whole or any part of the property subject to the power or interest. (3) Reduce or limit the persons or objects or classes of persons or objects in whose favor the power or interest would otherwise be exercisable. (e) Procedural requirements.--A release and a disclaimer under this section shall be in writing and filed, delivered and recorded in a similar manner as a disclaimer under section 6204 (relating to filing, delivery and recording). (July 8, 2016, P.L.497, No.79, eff. Jan. 1, 2017) 2016 Amendment. Act 79 added section 6103.1. Cross References. Section 6103.1 is referred to in section 5601.4 of this title.

20 Pa.C.S. § 6104 Rule against perpetuities.

(a) General.--No interest shall be void as a perpetuity except as herein provided. (b) Void interest; exceptions.--Upon the expiration of the period allowed by the common law rule against perpetuities as measured by actual rather than possible events, any interest not then vested and any interest in members of a class the membership of which is then subject to increase shall be void. This subsection shall not apply to: (1) Interest exempt at common law.--Interests which would not have been subject to the common law rule against perpetuities. (2) Cemetery trusts.--Interests which are directed to be used for the maintenance, care, or adornment of any cemetery, churchyard, or other place for the burial of the dead, or any portion thereof, or any grave therein or any improvement on or about the same, and which are subject to no condition precedent at the end of the period described in subsection (b). (3) Pension or profit-sharing plans.--Interests created by a bona fide trust inter vivos primarily for the benefit of business employees, their families or appointees, under a stock bonus, pension, disability or death benefit, profit-sharing or other employee-benefit plan. (4) Administrative powers.--Powers which contribute to the effective management of trust assets, including powers to sell, mortgage, or lease trust assets, powers relating to investment of trust assets, powers to determine what is principal and what is income, and powers to name successor trustees. (c) Time for beginning period.--The period allowed by the common law rule against perpetuities under subsection (b) of this section shall be measured from the expiration of any time during which one person while living has the unrestricted power to transfer to himself the entire legal and beneficial interest in the property. (d) Applicability.--The provisions of this section and of section 6105 (relating to rule against perpetuities; disposition when invalidity occurs) shall apply to all interests created before January 1, 2007. (Apr. 28, 1978, P.L.77, No.37, eff. 60 days; July 7, 2006, P.L.615, No.98, eff. imd.) 2006 Amendment. Act 98 amended subsec. (d). Cross References. Section 6104 is referred to in sections 6105, 6107.1 of this title.

20 Pa.C.S. § 6105 Rule against perpetuities; disposition when invalidity occurs.

(a) Valid interests following void interests.--A valid interest following a void interest in income shall be accelerated to the termination date of the last preceding valid interest. (b) Void interests on condition subsequent or special limitation.--A void interest following a valid interest on condition subsequent or special limitation shall vest in the owner of such valid interest. (c) Other void interests.--Any other void interest shall vest in the person or persons entitled to the income at the expiration of the period described in section 6104(b) (relating to void interest; exceptions). Cross References. Section 6105 is referred to in sections 6104, 6107.1 of this title.

20 Pa.C.S. § 6106 Income accumulations; when valid.

(a) General.--Except as set forth in section 6107.1 (relating to applicability of rule against perpetuities), no direction or authorization to accumulated income shall be void, except as herein provided. (b) Void accumulations; exceptions.--Except as set forth in section 6107.1, upon the expiration of the period allowed by the common law rule against perpetuities as measured by actual rather than possible events, any direction or authorization to accumulate income shall be void. This subsection shall not apply to: (1) Directions or authorizations to accumulate income in a trust for any charitable purpose or purposes. (2) Directions or authorizations to accumulate income in a bona fide trust inter vivos primarily for the benefit of business employees, their families or appointees, under a stock bonus, pension, disability or death benefit, profit-sharing or other employee-benefit plan. (c) Time for beginning period.--Except as set forth in section 6107.1, the period allowed by the common law rule against perpetuities under subsection (b) of this section shall be measured from the expiration of any time during which one person while living has the unrestricted power to transfer to himself the entire legal and beneficial interest in the property. (July 7, 2006, P.L.625, No.98, eff. imd.) Cross References. Section 6106 is referred to in section 6107.1 of this title.

20 Pa.C.S. § 6107 Income accumulations; disposition when invalidity occurs.

Except as set forth in section 6107.1 (relating to applicability of rule against perpetuities), income subject to a void direction or authorization to accumulate shall be distributed to the person or proportionately to the persons in whom the right to such income has vested by the terms of the instrument or by operation of law. (July 7, 2006, P.L.625, No.98, eff. imd.) Cross References. Section 6107 is referred to in section 6107.1 of this title.

20 Pa.C.S. § 6107.1 Applicability of rule against perpetuities.

(a) Traditional rule.--Sections 6104 (relating to rule against perpetuities), 6105 (relating to rule against perpetuities; disposition when invalidity occurs), 6106 (relating to income accumulations; when valid) and 6107 (relating to income accumulations; disposition when invalidity occurs): (1) shall apply to every interest created before January 1, 2007; but (2) shall not apply to any interest created after December 31, 2006. (b) Modern rule.--All of the following apply to every interest created after December 31, 2006: (1) Except as provided in paragraph (3), no interest shall be void as a perpetuity. (2) No direction or authorization to accumulate income shall be void as a perpetuity. (3) If a power of appointment is exercised to create a new power of appointment, any interest created by the exercise of the new power of appointment is invalid if it does not vest within 360 years of the creation of the original power of appointment, unless the exercise of the new power of appointment expressly states that this provision shall not apply to the interests created by the exercise. (4) Void interests shall be disposed of in the manner provided in section 6105. (July 7, 2006, P.L.625, No.98, eff. imd.; Oct. 27, 2010, P.L.837, No.85, eff. imd.) 2010 Amendment. Section 9(2) of Act 85 provided that the amendment of section 6107.1 shall apply to any interest created after December 31, 2006. Section 10(b) of Act 85 provided that the amendment of section 6107.1 shall be retroactive to January 1, 2007. Cross References. Section 6107.1 is referred to in sections 6106, 6107 of this title.

20 Pa.C.S. § 6108 Designation of beneficiaries of insurance or employee death benefits not testamentary.

(a) In general.--The designation of beneficiaries of life insurance, annuity or endowment contracts, or of any agreement entered into by an insurance company in connection therewith, supplemental thereto or in settlement thereof, and the designation of beneficiaries of benefits payable upon or after the death of a participant under any pension, bonus, profit-sharing, retirement annuity, or other employee-benefit plan, shall not be considered testamentary and shall not be subject to any law governing the transfer of property by will. This section shall apply regardless of whether the insurance contract or the employee-benefit plan designates the ultimate beneficiaries or makes the proceeds payable, directly or indirectly, to a trustee of a trust under a will or under a separate trust instrument which designates the ultimate beneficiaries, and regardless of whether any such trust is amendable or revocable, or both, or is funded or unfunded, and notwithstanding a reservation to the settlor of all rights of ownership in the insurance contracts or under the employee-benefit plans. Unless otherwise expressly provided in the conveyance, funds or other property so passing to a trust under a will shall become and be a part of the testamentary trust to be administered and disposed of in accordance with the provisions thereof, without forming any part of the testator's estate for administration by his personal representative. (b) Applicability.--The provisions of subsection (a) of this section relating to the designation of beneficiaries of benefits payable under employee-benefit plans shall apply to designations made prior or subsequent to January 1, 1970, by persons who die on or after said date, and shall not be deemed to create any implication of invalidity of any such designation made by any person who dies before said date.

20 Pa.C.S. § 6109 Combination of charitable trusts (Repealed).

1980 Repeal. Section 6109 was repealed July 11, 1980, P.L.565, No.118, effective in 60 days.

20 Pa.C.S. § 6110 Administration of charitable interests (Deleted by amendment).

2006 Amendment. Section 6110 was deleted by amendment July 7, 2006, P.L.625, No.98, effective in 120 days.

20 Pa.C.S. § 6111 Conveyances to defeat marital rights (Repealed).

1978 Repeal. Section 6111 was repealed April 18, 1978, P.L.42, No.23, effective in 60 days.

20 Pa.C.S. § 6111.1 Modification by divorce or pending divorce.

Any provision in a conveyance which was revocable by a conveyor at the time of the conveyor's death and which was to take effect at or after the conveyor's death in favor of or relating to the conveyor's spouse shall become ineffective for all purposes unless it appears in the governing instrument that the provision was intended to survive a divorce, if the conveyor: (1) is divorced from such spouse after making the conveyance; or (2) dies domiciled in this Commonwealth during the course of divorce proceedings, no decree of divorce has been entered pursuant to 23 Pa.C.S. § 3323 (relating to decree of court) and grounds have been established as provided in 23 Pa.C.S. § 3323(g). (Apr. 18, 1978, P.L.42, No.23, eff. 60 days; Dec. 16, 1992, P.L.1163, No.152, eff. imd.; Oct. 27, 2010, P.L.837, No.85, eff. 60 days)

20 Pa.C.S. § 6111.2 Effect of divorce or pending divorce on designation of beneficiaries.

(a) Applicability.--This section is applicable if an individual: (1) is domiciled in this Commonwealth; (2) designates the individual's spouse as beneficiary of the individual's life insurance policy, annuity contract, pension or profit-sharing plan or other contractual arrangement providing for payments to the spouse; and (3) either: (i) at the time of the individual's death is divorced from the spouse; or (ii) dies during the course of divorce proceedings, no decree of divorce has been entered pursuant to 23 Pa.C.S. § 3323 (relating to decree of court) and grounds have been established as provided in 23 Pa.C.S. § 3323(g). (b) General rule.--Any designation described in subsection (a)(2) in favor of the individual's spouse or former spouse that was revocable by the individual at the individual's death shall become ineffective for all purposes and shall be construed as if the spouse or former spouse had predeceased the individual, unless it appears the designation was intended to survive the divorce based on: (1) the wording of the designation; (2) a court order; (3) a written contract between the individual and the spouse or former spouse; or (4) a designation of a former spouse as a beneficiary after the divorce decree has been issued. (c) Liability.-- (1) Unless restrained by court order, no insurance company, pension or profit-sharing plan trustee or other obligor shall be liable for making payments to a spouse or former spouse which would have been proper in the absence of this section. (2) Any spouse or former spouse to whom payment is made shall be answerable to anyone prejudiced by the payment. (Dec. 16, 1992, P.L.1163, No.152, eff. imd.; Dec. 1, 1994, P.L.655, No.102, eff. 60 days; Oct. 27, 2010, P.L.837, No.85, eff. 60 days) Cross References. Section 6111.2 is referred to in section 3323 of Title 23 (Domestic Relations).

20 Pa.C.S. § 6112 Spendthrift trusts (Deleted by amendment).

2006 Amendment. Section 6112 was deleted by amendment July 7, 2006, P.L.625, No.98, effective in 120 days.

20 Pa.C.S. § 6113 Limited estates in personalty and in the proceeds of the conversion of real estate.

A person having a present interest in personal property, or in the proceeds of the conversion of real estate, which is not in trust, and which is subject to a future interest, shall be deemed to be a trustee of such property, and not a debtor to the remainderman, with the ordinary powers and duties of a trustee, except that he shall not be required to change the form of the investment to an investment authorized for Pennsylvania fiduciaries, nor shall he be entitled to compensation as trustee. Such person, unless given a power of consumption or excused from entering security by the terms of the conveyance, shall be required to enter such security for the protection of persons entitled to the future interests as the court in its discretion shall direct. If a person having a present interest shall not enter security as directed, the court shall appoint a trustee who shall enter such security as the court shall direct, and who shall exercise all the ordinary powers and duties of a trustee, except that he shall not be required to change the form of the investment to an investment authorized for Pennsylvania fiduciaries.

20 Pa.C.S. § 6114 Rules of interpretation.

(a) General rule.--Except as provided in subsection (b), in the absence of a contrary intent appearing therein, conveyances shall be construed, as to real and personal estate, in accordance with the following rules: (1) Meaning of "heirs" and "next of kin," etc.; time of ascertaining class.--A conveyance of real or personal property, whether directly or in trust, to the conveyor's or another designated person's "heirs" or "next of kin" or "relatives" or "family" or to "the persons thereunto entitled under the intestate laws," or to persons described by words of similar import, shall mean those persons, including the spouse, who would take under the intestate laws if such conveyor or other designated person were to die intestate at the time when such class is to be ascertained, a resident of the Commonwealth, and owning the property so conveyed: Provided, That the share of a spouse other than the spouse of the conveyor, shall not include the allowance under the intestate laws. The time when such class is to be ascertained shall be when the conveyance to the class is to take effect in enjoyment. (2) Time for ascertaining class.--In construing a conveyance to a class other than a class described in paragraph (1) of this section, the class shall be ascertained at the time the conveyance is to take effect in enjoyment, except that the issue then living of any member of the class who is then dead shall take per stirpes the share which their deceased ancestor would have taken if he had then been living. (3) Meaning of "die without issue" and similar phrases.--In any conveyance of real or personal estate, the words "die without issue," "die without leaving issue," "have no issue," or other words importing either a want or failure of issue of any person in his lifetime or at the time of his death, or an indefinite failure of his issue, shall be construed to mean a want or failure of issue in his lifetime or at his death, and not an indefinite failure of his issue. (4) Adopted children.--In construing a conveyance to a person or persons described by relationship to the conveyor or to another, any adopted person shall be considered the child of his adopting parent or parents, except that, in construing the conveyance of a conveyor who is not the adopting parent, an adopted person shall not be considered the child of his adopting parent or parents unless the adoption occurred during the adopted person's minority or reflected an earlier parent-child relationship that existed during the child's minority. An adopted person who is considered the child of his adopting parent or parents under this paragraph shall not be considered as continuing to be the child of his natural parents except in construing the conveyance of a natural kin, other than the natural parent, who has maintained a family relationship with the adopted person. If a natural parent shall have married the adopting parent, the adopted person shall also be considered the child of such natural parent. (5) Persons born out of wedlock.--In construing a conveyance to a person or persons described by relationship to the conveyor or to another, a person born out of wedlock shall be considered the child of the natural mother and also of the natural father if the paternity of the natural father has been determined according to the provisions of section 2107 (relating to persons born out of wedlock). (6) Inheritance tax.--The inheritance tax imposed by the Inheritance and Estate Tax Act of 1961 upon the conveyance of any estate, income or interest, for a term of years, for life, or for other limited period, shall be paid out of the principal of the property by which the estate, income or interest is supported. (7) Employee benefits.--Benefits received by a trust under a Federally qualified profit sharing, pension or stock bonus plan shall not be available for the payment of obligations of the decedent or of his estate. (8) Corporate fiduciaries.--Provisions authorizing or restricting investment in the securities or common trust funds of a corporate fiduciary or the exercise of voting rights in its securities shall also apply to the securities or common trust funds of any corporation which is an affiliate of the corporate fiduciary within the meaning of section 1504 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1504). (b) Exception.--This section does not apply to trusts under Chapter 77 (relating to trusts). (July 9, 1976, P.L.551, No.135, eff. imd.; Nov. 26, 1978, P.L.1269, No.303, eff. imd.; Dec. 16, 1992, P.L.1163, No.152, eff. imd.; July 7, 2006, P.L.625, No.98, eff. 120 days) References in Text. The act of June 15, 1961 (P.L.373, No.207), known as the Inheritance and Estate Tax Act of 1961, referred to in par. (6), was repealed by the act of December 13, 1982 (P.L.1086, No.255). The subject matter is now contained in Article XXI of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.

20 Pa.C.S. § 6115 Estates pur autre vie.

An interest conveyed to a person for the life of another, whether or not such conveyance is to him and his heirs, shall, on his death before expiration of the interest, be considered as personal property forming a part of his estate and shall be subject to distribution in like manner as a lease for a term of years.

20 Pa.C.S. § 6116 Estates in fee tail abolished.

Whenever by any conveyance an estate in fee tail would be created according to the common law of the Commonwealth, it shall pass an estate in fee simple, and as such shall be inheritable and freely alienable.

20 Pa.C.S. § 6117 Rule in Shelley's case and doctrine of worthier title.

(a) Rule in Shelley's case.--The rule in Shelley's case and its corollaries shall not be applied, and a conveyance directly or in trust which shall express an intent to create an estate for life with remainder to the life tenant's heirs or the heirs of his body or his issue or his next of kin or persons described by words of similar import, shall not operate to give such life tenant an estate in fee in real estate or an absolute estate in personalty. (b) Doctrine of worthier title.--The doctrine of worthier title shall not be applied as a rule of law or as a rule of construction. Language in a governing instrument describing the beneficiaries of a disposition as the transferor's heirs, heirs at law, next of kin, distributees, relatives or family or language of similar import shall not create or presumptively create a reversionary interest in the transferor. (Dec. 1, 1994, P.L.655, No.102, eff. 60 days)

20 Pa.C.S. § 6118 Invalidity of certain gifts (Repealed).

1976 Repeal. Section 6118 was repealed July 9, 1976, P.L.551, No.135, effective immediately.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=20Fetched: 10/16/2026

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