1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in realty transfer tax, further providing for
11excluded transactions.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Section 1102-C.3 of the act of March 4, 1971 
15(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
16by adding a clause to read:

17Section 1102-C.3. Excluded Transactions.--The tax imposed by
18section 1102-C shall not be imposed upon:

19* * *

20(9.3) A transfer for no or nominal actual consideration from
21a donor under an arrangement respecting property or contract

1rights that is established during the donor's life, under which:

2(1) the right to possession or enjoyment of the property or
3to a contractual payment shifts outside of probate to the donee
4at the donor's death; and

5(2) substantial lifetime rights of dominion, control,
6possession or enjoyment are retained by the donor.

7* * *

8Section 2. The addition of section 1102-C.3(9.3) of the act
9shall apply to trusts executed on or after the effective date of
10this act.

11Section 3. This act shall take effect in 60 days.