1Amending Title 20 (Decedents, Estates and Fiduciaries) of the
2Pennsylvania Consolidated Statutes, in orphans' court 
3divisions, further providing for nonmandatory exercise of 
4jurisdiction through orphans' court division; in wills,
5further providing for rules of interpretation; in
6dispositions independent of letters, family exemption,
7probate of wills and grant of letters, providing for
8submission to jurisdiction; in administration and personal
9representatives, further providing for continuation of
10business and for incorporation of estate's business; in
11accounts and distribution, further providing for
12determination of title to decedent's interest in real estate; 
13in health care, further providing for authority of health 
14care agent and for relation of health care agent to court-
15appointed guardian and other agents; in powers of attorney, 
16further providing for form of power of attorney, for 
17implementation of power of attorney, for durable powers of 
18attorney and for account; providing for investigation of 
19financial abuse and mismanagement and for jurisdiction and 
20venue; in estates, further providing for release or
21disclaimer of powers or interests; in estates, providing for
22release of powers and interests and disclaimer of powers;
23providing for powers of appointment; in trusts, further
24providing for nonjudicial settlement agreements - UTC 111,
25for representation of parties in interest in general, for
26division of trusts, for resignation of trustee and filing
27resignation, for duty to inform and report, for limitation of 
28action against trustee and for powers, duties and liabilities
29identical with personal representatives; codifying provisions
30of the Charitable Instruments Act of 1971; in principal and
31income, further providing for charitable trusts; and making a
32related repeal.

1The General Assembly of the Commonwealth of Pennsylvania
2hereby enacts as follows:

3Section 1. Sections 712(1) and 2514(13) of Title 20 of the
4Pennsylvania Consolidated Statutes are amended to read:

5§ 712. Nonmandatory exercise of jurisdiction through orphans'
6court division.

7The jurisdiction of the court of common pleas over the
8following may be exercised through either its orphans' court
9division or other appropriate division:

10(1) Title to real estate.--The determination of the
11persons to whom the title to real estate of a decedent or of
12the creator of an estate or trust has passed by devise or
13descent or by the terms of the trust instrument where
14jurisdiction of such estate or trust is exercised through the
15orphans' court division: Provided, That nothing herein shall
16be construed to restrict the provisions of section 711
17(relating to mandatory exercise of jurisdiction through
18orphans' court division in general) relating to distribution
19of real estate in an estate or trust. If section 3546 
20(relating to determination of title to decedent's interest in 
21real estate) applies, the procedures under that section shall 
22govern. For other actions to quiet title to real estate, this 
23section shall govern.

24* * *

25§ 2514. Rules of interpretation.

26In the absence of a contrary intent appearing therein, wills
27shall be construed as to real and personal estate in accordance
28with the following rules:

29* * *

30[(13) Power of appointment.--A general devise of the

1real estate of the testator, or of the real estate of the
2testator in any place, or in the occupation of any person
3mentioned in his will, or otherwise described in a general
4manner, shall be construed to include any real estate, or any
5real estate to which such description shall extend, as the
6case may be, which he shall have power to appoint in any
7manner he shall think proper, and shall operate as an
8execution of such power. In like manner, a bequest of the
9personal estate of the testator, or any bequest of personal
10property described in a general manner, shall be construed to
11include any personal estate, or any personal estate to which
12such description shall extend, as the case may be, which he
13shall have power to appoint in any manner he shall think
14proper, and shall operate as an execution of such power. In
15like manner, a general pecuniary legacy, when the assets of
16the individual estate of the testator are not sufficient for
17its payment, shall, to the extent necessary to make possible
18the payment of the legacy, be construed to include any estate
19which the testator shall have power to appoint in any manner
20he shall think proper, and shall to such extent operate as an
21execution of such power.]

22* * *

23Section 2. Title 20 is amended by adding a section to read:

24§ 3163. Submission to jurisdiction.

<-25A person granted letters testamentary or letters of
26administration shall be deemed to submit to the jurisdiction of
27the orphans' court division of the county in which the register
28granted the letters.

<-29(a) General rule.--By accepting appointment by the register
30of wills, the personal representative submits personally to the

1jurisdiction of the orphans' court division of the county where
2letters testamentary or letters of administration are granted in
3all matters involving the performance of the personal
4representative's duties as personal representative, and an
5action by any interested party seeking an accounting by, or
6removal of, the personal representative, or alleging breach of
7duty by the personal representative, shall be commenced by
8notice to the personal representative.

9(b) Criminal contempt.--Notwithstanding subsection (a), no
10personal representative shall be held in criminal contempt of an
11order of the orphans' court division without the prior issuance
12of a citation and service of process.

13Section 3. Sections 3314, 3315, 3546, 5456(a) and 5460(a) of
14Title 20 are amended to read:

15§ 3314. Continuation of business.

16[The court,] Giving due regard to the provisions of the 
17governing instrument and any other factor that the court deems 
18relevant, and aided by the report of a master if necessary, the 
19court may authorize the personal representative to continue any
20business of the estate for the benefit of the estate [and in
21doing so the court, for cause shown, may disregard the
22provisions of the governing instrument, if any]. The order may
23be with or without notice. If prior notice is not given to all
24parties in interest, it shall be given within five days after
25the order or within such extended time as the court, for cause
26shown, shall allow. Any party in interest may, at any time,
27petition the court to revoke or modify the order. The order may
28provide:

29(1) for the conduct of business, by the personal
30representative alone or jointly with others, or, unless

1restricted by the terms of the governing instrument, as a
2corporation, partnership, limited liability company or other 
3entity to be formed;

4(2) the extent of the liability of the estate or any
5part thereof, or of the personal representative, for
6obligations incurred in the continuation of the business;

7(3) whether liabilities incurred in the conduct of the
8business are to be chargeable solely to the part of the
9estate set aside for use in the business or to the estate as
10a whole;

11(4) the period of time the business may be conducted;
12[and]

13(4.1) for the compensation of a personal representative
14actively managing, supervising or engaging in the operation
15of an entity or business, from the estate's assets or from
16the entity or business, as appropriate, provided that the
17compensation is reasonably based upon the actual
18responsibilities assumed and performed; and

19(5) such other regulations, including accountings, as
20the court shall deem advisable.

21§ 3315. Incorporation of or formation of entity to operate
22estate's business.

23After notice to all parties in interest, aided by the report
24of a master if necessary, and giving due regard to the 
25provisions of the governing instrument and any other factor that 
26the court deems relevant, the court[, unless restricted by the
27terms of the governing instrument,] may authorize the personal
28representative alone or jointly with others, to organize a
29corporation, or form a partnership, limited liability company or 
30other entity, to carry on the business of the estate, whether

1the business was owned solely or with others, and may contribute
2for stock of the corporation, as capital, or for an interest in 
3a partnership, limited liability company or other entity, all or
4part of the property of the estate which was invested in the
5business.

6§ 3546. Determination of title to decedent's interest in real
7estate.

8[When a person shall die leaving an interest in real estate
9within the Commonwealth and no letters testamentary or of
10administration have been granted on the estate of the decedent
11in the Commonwealth, and one year has expired since the
12decedent's death, or if a personal representative has been
13appointed and has not filed his account within six years of the
14death of the decedent, any person claiming an interest in the
15real estate as or through an heir or devisee of the decedent may
16present a petition to establish title thereto in the orphans'
17court division of the county where the letters testamentary or
18of administration have been granted, or should no letters have
19been granted, then in the orphans' court division of the county
20within which was the family or principal residence of the
21decedent. If the decedent was a nonresident of the Commonwealth,
22the petition may be presented in the orphans' court division of
23any county wherein any of the real estate shall lie. The court,
24aided if necessary by the report of a master, may enter its
25decree nisi adjudging that the title to the decedent's interest
26in the real estate is in such person or persons as the court
27shall determine. Notice of the decree nisi shall be given to
28creditors and other parties in interest, by advertisement and
29otherwise, as the court shall direct. If no exception to the
30decree is filed within three months, it shall be confirmed

1absolutely, free of all decedent's debts not then liens of
2record, and regardless of the provisions of any testamentary
3writing of the decedent thereafter probated. A certified copy of
4the decree shall be recorded in the office of the recorder of
5deeds of each county where real estate included in the decree
6shall lie, shall be indexed by the recorder in the grantor's
7index under the name of the decedent and in the grantee's index
8under the name of each distributee, and shall be registered in
9the survey bureau or with the proper authorities empowered to
10keep a register of real estate in the county.]

11(a) Applicability.--This section shall apply if:

12(1) A person dies leaving an interest in real estate
13within this Commonwealth.

14(2) Either of the following occurs:

15(i) No letters testamentary or letters of
16administration have been granted on the estate of the
17decedent in this Commonwealth and one year has expired
18since the decedent's death.

19(ii) A personal representative has been appointed
20but has not filed an account within six years of the
21decedent's death.

22(3) There is a conflict between this section and either 
23section 2103(6) (relating to shares of others than surviving 
24spouse) or Article XIII.1 of the act of April 9, 1929 
25(P.L.343, No.176), known as The Fiscal Code, with respect to 
26a petition by an entity under subsection (c)(2). The rights 
27granted under this section shall supersede any right of the 
28Commonwealth created under section 2103(6) or Article XIII.1 
29of The Fiscal Code.

30(b) Subject of petition.--A person or entity authorized by

1subsection (c) may present a petition under this section to:

2(1) terminate an interest in the real estate of other
3heirs or devisees of the decedent who, after being given
4proper notice <-as directed by the court under subsection
<-5(f)(2), fail to file timely an exception to the court's
6decree <-(f); or

7(2) have declared as void, unenforceable and canceled of
8record a fraudulent conveyance of the decedent's interest in
9the real estate and to the extent otherwise authorized by law
10any lien, title, claim or interest arising in the property
11by, from or under the fraudulent conveyance, including any
12subsequent transfers of property following the fraudulent
13conveyance and any liens to the extent that they have
14attached to the property as a result of the fraudulent
15conveyance, after all interested parties have been given
16proper notice as directed by the court under subsection <-(f)
17(2). (f).<-

18(c) Who may petition.--The following persons and entities
19may petition to establish title to the decedent's real estate:

20(1) A person claiming an interest in the real estate:

21(i) as an heir or devisee of the decedent;

22(ii) through the decedent; or

23(iii) through an heir or devisee of the decedent,
24when the heir or devisee is deceased or has conveyed all
25or part of the heir or devisee's interest in the property
26to the person.

27(2) A nonprofit corporation organized for community
28development purposes under section 501(c)(3) of the Internal
29Revenue Code (Public Law 99-514, 26 U.S.C. § 1 et seq.), a
30municipality in which the real estate is located or a

1redevelopment authority created and organized under the act
2of May 24, 1945 (P.L.991, No.385), known as the Urban
3Redevelopment Law, having jurisdiction in the municipality in
4which the real estate is <-located:

5(i) In a manner that the court prescribes.

6(ii) Upon a showing by clear and convincing evidence
7to the court that:

8(A) No heirs or devisees exist or have taken

<-9located upon a showing by clear and convincing evidence to
10the court that:

11(i) No heirs or devisees exist or have taken action
12with respect to the real estate for at least five years
13since the decedent's death.

<-14(B) The real estate is not occupied by a person

<-15(ii) The real estate is not occupied by a person
16claiming rights by adverse possession.

17(d) Priority of petitions.--Where there are two or more
18petitions for the same real estate under subsection (c)(2), the
19court shall give priority in entering <-a decree nisi or its order
20to one of the petitioners in the following order:

21(1) The municipality.

22(2) The redevelopment authority.

23(3) The nonprofit corporation.

24(e) Where to petition.--A petition under this section shall
25be filed in the orphans' court division of the county where:

26(1) the letters testamentary or letters of
27administration have been granted;

28(2) the principal residence of the decedent was located,
29if no letters testamentary or letters of administration have
30been granted; or

1(3) any of the real estate is located, if the decedent
2was a nonresident of this Commonwealth.

3(f) Notice of petition.--

4(1) Notice shall be given to all persons reasonably
5identifiable as eligible to file a petition under subsection
6(c), creditors that do not have liens of record, to the
7extent known, and all other persons and parties in interest
8reasonably known to hold or claim a lien, title, claim or
9other interest in the property in accordance with <-the
10Pennsylvania Orphans' Court<- Rule 5.1 or, if the notice cannot
11be given in accordance with Pennsylvania Orphans' Court Rule
125.1 (a) or (b), the petition shall be accompanied by a motion
13for service pursuant to Pennsylvania Rule of Civil Procedure
14430, including an affidavit, attested by the petitioner or
15petitioner's counsel of record, stating the reasons why
16notice cannot be given under Rule 5.1 (a) or (b) and the
17nature and extent of the investigation that has been made to
18determine the whereabouts of creditors that do not have liens
19of record and other parties in interest. <-Rules. Notice shall
20also be given by:

21(i) publication once a week during three successive
22calendar weeks in the legal periodical, if any, and in a
23newspaper of general circulation published at or near the
24location of the real estate;

25(ii) posting a copy of the petition on the most
26public part of the property; and

27(iii) such other methods, if any, as the court deems
28appropriate to give notice.

29(2) If letters testamentary or letters of administration
30have been granted on the estate of the decedent, notice of

1the petition under this section shall be given to the
2personal representative of the decedent.

3(3) A lis pendens notice shall be given in each county
4where the real estate is located in the same manner and place
5as provided in section 3390 (relating to specific performance
6of contracts) for an action of specific performance.

7(g) <-Decree or order Order.--

8(1) Aided if necessary by the report of a master, the
9court may enter <-a decree nisi an order adjudging that the
10title to the decedent's interest in the real estate is in the
11petitioner<-, free of all decedent's debts not then liens of
12record, and regardless of the provisions of any testamentary
13writing of the decedent thereafter probated, or an order
14directing other appropriate relief as the court determines.

<-15(2) Notice of the decree nisi or order shall be given
16to:

17(i) creditors that do not have liens of record, to
18the extent known;

19(ii) creditors that have liens of record, if relief
20is being sought under subsection (b)(2); and

21(iii) other parties in interest, by advertisement or
22as otherwise directed by the court.

23(3) If no exception to the decree or order is filed
24within three months after notice is given in accordance with
25paragraph (2), it shall be confirmed absolutely, free of all
26decedent's debts not then liens of record, and regardless of
27the provisions of any testamentary writing of the decedent
28thereafter probated.

29(4) (2) A certified copy of the<- decree or order shall
30be:

1(i) Recorded in the office of the recorder of deeds
2of each county where real estate included in the decree
3or order shall lie.

4(ii) Indexed by the recorder in the grantor's index
5under the name of the decedent and in the grantee's index
6under the name of each distributee.

7(iii) Registered in the survey bureau or with the
8proper authorities empowered to keep a register of real
9estate in the county.

<-10(iv) Served by the petitioner upon each party who
11has entered an appearance in the proceeding.

12(h) Parcel number or identifier.--

13(1) A petition filed under subsection (b) and notice of
14petition given under subsection (f) shall include the county
15tax parcel number or Uniform Parcel Identifier for each
16parcel included. A party alleging any failure to comply with
17the requirements of this paragraph must do so in the manner
18provided for raising an affirmative defense.

19(2) <- A decree An order presented for recording under
20subsection (g) shall comply with section 3 of the act of
21April 24, 1931 (P.L.48, No.40), entitled "An act requiring
22the recording of certain written agreements pertaining to
23real property, and prescribing the effect thereof as to
24subsequent purchasers, mortgages, and judgment creditors of
25the parties thereto."

26(i) Definition.--For the purposes of this section,
27"fraudulent conveyance" shall mean a transfer of an interest,
28lien, title or claim in real estate that occurs as a result of:

29(1) a forgery of the grantor's signature on a document
30purporting to make such transfer;

1(2) the grantor being induced by fraud,
2misrepresentation, duress or coercion to sign a document
3purporting to make such transfer; or

4(3) some other inappropriate means used to obtain the
5grantor's signature on the document purporting to make such
6transfer, as determined by a court.

7§ 5456. Authority of health care agent.

8(a) Extent of authority.--Except as expressly provided
9otherwise in a health care power of attorney and subject to
10subsection (b) and section 5460 (relating to relation of health
11care agent to court-appointed guardian and other agents), a
12health care agent shall have the authority to make any health
13care decision and to exercise any right and power regarding the
14principal's care, custody and health care treatment that the
15principal could have made and exercised. The foregoing power 
16shall include the power to authorize admission to a medical, 
17nursing, residential or similar facility, or to enter into 
18agreements for the principal's care. The health care agent's
19authority may extend beyond the principal's death to make
20anatomical gifts, dispose of the remains and consent to
21autopsies.

22* * *

23§ 5460. Relation of health care agent to court-appointed
24guardian and other agents.

25(a) Accountability of health care agent.--If a principal who
26has executed a health care power of attorney is later
27adjudicated an incapacitated person and a guardian of the person
28to make health care decisions is appointed by a court, the
29health care agent is accountable to the guardian as well as to
30the principal. [The guardian shall have the same power to revoke

1or amend the appointment of a health care agent that the
2principal would have if the principal were not incapacitated but
3may not revoke or amend other instructions in an advance health
4directive absent judicial authorization.] In its guardianship 
5order and determination of a person's incapacity, the court 
6shall determine the extent to which the health care agent's 
7authority to act remains in effect.

8* * *

9Section 4. Section 5602(a) of Title 20 is amended by adding
10paragraphs to read:

11§ 5602. Form of power of attorney.

12(a) Specification of powers.--A principal may, by inclusion
13of the language quoted in any of the following paragraphs or by
14inclusion of other language showing a similar intent on the part
15of the principal, empower an agent to do any or all of the
16following, each of which is defined in section 5603 (relating to
17implementation of power of attorney):

18* * *

19(24) "To operate a business or entity."

20(25) "To provide for personal and family maintenance."

21* * *

22Section 5. Section 5603(d) and (r) of Title 20 are amended
23and the section is amended by adding subsections to read:

24§ 5603. Implementation of power of attorney.

25* * *

26(d) Power to claim an elective share.--A power "to claim an 
27elective share of the estate of my deceased spouse" shall mean 
28that the agent may elect to take against the will and 
29conveyances of the principal's deceased spouse, disclaim any 
30interest in property which the principal is required to disclaim
 

1as a result of such election, retain any property which the
2principal has the right to elect to retain, file petitions
3pertaining to the election, including petitions to extend the
4time for electing and petitions for orders, decrees and
5judgments in accordance with section 2211(c) and (d) (relating
6to determination of effect of election; enforcement), and take
7all other actions which the agent deems appropriate in order to
8effectuate the election: Provided, however, That the election
9shall be made only upon the approval of the court having
10jurisdiction of the principal's estate in accordance with
11section 2206 (relating to right of election personal to
12surviving spouse) in the case of a principal who [has been
13adjudicated] is an incapacitated person, or upon the approval of 
14the court having jurisdiction of the deceased spouse's estate in 
15the case of a principal who [has not been adjudicated] is not
16an incapacitated person.

17* * *

18(r) Power to handle interests in estates and trusts.--A 
19power to "handle interests in estates and trusts" shall mean 
20that the agent may receive a bequest, devise, gift or other 
21transfer of real or personal property to the principal in the 
22principal's own right or as a fiduciary for another and give 
23full receipt and acquittance therefor or a refunding bond 
24therefor; approve accounts of any estate, trust, partnership or 
25other transaction in which the principal may have an interest; 
26[and] enter into any compromise and release in regard thereto; 
27and receive on behalf of the principal all notices and reports 
28required by section 7780.3 (relating to duty to inform and 
29report) or permitted by section 7785(a) (relating to limitation 
30of action against trustee).

1* * *

2(u.2) Power to operate a business or entity.--A power "to
3operate a business or entity" shall mean that the agent may:

4(1) Continue or participate in the operation of any
5business or other entity in which the principal holds an
6interest, whether alone or with others, by making and
7implementing decisions regarding its financing, operations,
8employees and all other matters pertinent to the business or
9entity.

10(2) Change the form of ownership of the business or
11entity to a corporation, partnership, limited liability
12company or other entity, and initiate or take part in a
13corporate reorganization, including a merger, consolidation,
14dissolution or other change in organizational form.

15(3) Compensate an agent actively managing, supervising
16or engaging in the operation of a business or entity, as
17appropriate, from the principal's assets or from the business
18or entity, provided that the compensation is reasonably based
19upon the actual responsibilities assumed and performed.

20(4) In general, exercise all powers with respect to
21operating a business or entity that the principal could if
22present.

23(u.3) Power to provide for personal and family
24maintenance.--

25(1) A power "to provide for personal and family
26maintenance" shall mean that the agent may provide for the
27health, education, maintenance and support, in order to
28maintain the customary standard of living of the principal's
29spouse and the following individuals, whether living when the
30power of attorney is executed or later born:

1(i) The principal's minor children.

2(ii) Other individuals legally entitled to be
3supported by the principal.

4(iii) The individuals whom the principal has
5customarily supported and intends to support.

6(2) In acting under this subsection, the agent shall:

7(i) Take into account the long-term needs of the
8principal.

9(ii) Consider any independent means available to
10those individuals apart from the support provided by the
11principal.

12(3) Authority with respect to personal and family
13maintenance is in addition to and not limited by authority
14that an agent may or may not have <-or court approval that may
15be necessary with respect to gifts under this chapter.

16Section 6. Section 5604(c)(1) of Title 20 is amended and
17subsection (c) is amended by adding a paragraph to read:

18§ 5604. Durable powers of attorney.

19* * *

20(c) Relation of agent to court-appointed guardian.--

21(1) If, following execution of a durable power of
22attorney, the principal [is adjudicated] becomes an
23incapacitated person and a guardian is appointed for his
24estate, the agent is accountable to the guardian as well as
25to the principal. [The guardian shall have the same power to
26revoke or amend the power of attorney that the principal
27would have had if he were not an incapacitated person.]

28* * *

29(3) In its guardianship order and determination of a
30person's incapacity, the court shall determine whether and

1the extent to which the incapacitated person's durable power
2of attorney remains in effect.

3* * *

4Section 7. Section 5610 of Title 20 is amended to read:

5§ 5610. Account.

6An agent shall file an account of his administration whenever 
7directed to do so by the court and may file an account at any 
8other time. All accounts shall be filed in the office of the 
9clerk in the county where the principal resides. The court may 
10assess the costs of the accounting proceeding as it deems 
11appropriate, including the costs of preparing and filing the 
12account.

13Section 8. Title 20 is amended by adding a section to read:

14§ 5612. Jurisdiction and venue.

15(a) County having venue.--Venue of any matter pertaining to
16the exercise of a power by an agent acting under a power of
17attorney as provided in this chapter shall be in the county in
18which the principal is domiciled, a resident or residing in a
19long-term care facility.

20(b) Declining jurisdiction.--

21(1) A court having jurisdiction may decline to exercise
22jurisdiction if at any time it determines that a court of
23another county or state is a more appropriate forum.

24(2) If a court of this Commonwealth declines to exercise
25jurisdiction, it shall either dismiss the proceeding or stay
26the proceeding upon condition that a proceeding be promptly
27commenced in another county or state. A court may impose any
28other condition that it deems appropriate.

29Section 9. Section 6103 of Title 20 is repealed:

30[§ 6103. Release or disclaimer of powers or interests.

1(a) Powers and interests releasable.--Any power of
2appointment, or power of consumption, whether general or
3special, other than a power in trust which is imperative, and
4any interest in, to, or over real or personal property held or
5owned outright, or in trust, or in any other manner which is
6reserved or given to any person by deed, will or otherwise, and
7irrespective of any limitation of such power or interest by
8virtue of any restriction in the nature of a so-called
9spendthrift trust provision, or similar provision, may be
10released or disclaimed, either with or without consideration by
11written instrument signed by the person possessing the power or
12the interest and delivered as hereinafter provided, but nothing
13in this section shall authorize an income beneficiary of a
14spendthrift trust to release or disclaim his right to such
15income, unless as a result of the release or disclaimer the
16released or disclaimed income will pass to one or more of the
17beneficiary's descendants. This section shall not apply to an
18interest that may be disclaimed under Chapter 62 (relating to
19disclaimers).

20(b) Form of release or disclaimer.--A power or interest
21which is releasable or disclaimable may be released or
22disclaimed either absolutely or conditionally, and may also be
23released or disclaimed with respect to the whole or any part of
24the property subject to such power or interest, and may also be
25released or disclaimed in such manner as to reduce or limit the
26persons or objects or classes of persons or objects in whose
27favor such power or interest would otherwise be exercisable. No
28release or disclaimer of a power or of an interest shall be
29deemed to make imperative a power or interest which was not
30imperative prior to such release or disclaimer unless the

1instrument of release or disclaimer expressly so provides.

2(c) Delivery of release or disclaimer.--Such release or
3disclaimer may be delivered to any one of the following:

4(1) Any person specified for such purpose in the
5instrument creating the power or interest.

6(2) Any trustee of the property to which the power or
7interest relates.

8(3) The clerk of the court having jurisdiction of the
9trust for filing in said court.

10(4) The recorder of deeds for recording in the county in
11which the person possessing the power or interest resides, or
12in which the deed, will, or other instrument creating the
13power or interest is recorded or filed.

14(d) Grantee or lienholder.--A release or disclaimer shall be
15void as against a bona fide grantee of or holder of a lien on
16real estate in any county unless the release or disclaimer or a
17duplicate original or certified copy thereof is recorded in the
18county where the real estate lies before the recording or
19entering of the instrument or lien under which such grantee or
20lienholder claims.]

21Section 10. Title 20 is amended by adding a section to read:

22§ 6103.1. Release of powers and interests and disclaimer of
23powers.

24(a) Interests releasable.--

25(1) Subject to paragraph (2), an interest in property
26that has been accepted may be released.

27(2) An income interest in a spendthrift trust may be
28released only if the released income passes to one or more of
29the releasor's descendants.

30(b) Effect of release of interest.--A releasor of an

1interest in property shall be treated as having died at the time
2of the release for purposes of determining and accelerating the
3interests of other parties in the property.

4(c) Nonfiduciary powers disclaimable or releasable.--A power
5of appointment, power of withdrawal or other power held in a
6nonfiduciary capacity may be disclaimed prior to its acceptance
7or released after its acceptance.

8(d) Terms of disclaimer or release.--A release of a power or 
9interest or a disclaimer of a power under this section may:

10(1) Be absolute or conditional.

11(2) Be made with respect to the whole or any part of the
12property subject to the power or interest.

13(3) Reduce or limit the persons or objects or classes of
14persons or objects in whose favor the power or interest would
15otherwise be exercisable.

16(e) Procedural requirements.--A release and a disclaimer
17under this section shall be in writing and filed, delivered and
18recorded in a similar manner as a disclaimer under section 6204
19(relating to filing, delivery and recording).

20Section 11. Title 20 is amended by adding a chapter to
21read:

22CHAPTER 76

23POWERS OF APPOINTMENT

24Sec.

257601. Definitions.

267602. Exercise of powers of appointment.

277603. Contract to exercise power.

287604. Manner of appointment.

297605. Antilapse provision.

307606. Partially effective exercise.

1§ 7601. Definitions.

2The following words and phrases when used in this chapter
3shall have the meanings given to them in this section unless the
4context clearly indicates otherwise:

5"Broad power of appointment." A power of appointment that
6the donee may exercise in favor of any one or more of the
7following:

8(1) One or more persons selected by the donee.

9(2) The donee.

10(3) The donee's estate.

11(4) Every person other than the donee, the donee's
12creditors, the donee's estate or the creditors of the donee's
13estate.

14"Limited power of appointment." A power of appointment that
15is not a broad power of appointment. The term includes a power
16to appoint to the donee's creditors or the creditors of the
17donee's estate.

18§ 7602. Exercise of powers of appointment.

19(a) Broad power of appointment.--Subject to subsection (c),
20in the absence of a contrary intent appearing in the instrument
21creating a broad power of appointment or in the donee's
22instrument exercising the power, a broad power of appointment
23may be exercised only by the donee's instrument making:

24(1) specific reference to the power;

25(2) general reference to any or all powers of
26appointment held by the donee;

27(3) a testamentary or inter vivos gift specifically
28describing the appointive property;

29(4) an insufficiently funded testamentary pecuniary
30legacy, to the extent to satisfy the legacy;

1(5) a general testamentary gift; or

2(6) a testamentary residuary gift.

3(b) Limited power of appointment.--

4(1) Subject to paragraph (2) and subsection (c), in the
5absence of a contrary intent appearing in the instrument
6creating a limited power of appointment or in the donee's
7instrument exercising the power, a limited power of
8appointment may be exercised only by the donee's instrument
9making:

10(i) specific reference to the power;

11(ii) a testamentary or inter vivos gift specifically
12describing the appointive property;

13(iii) a general testamentary gift to all, and only
14to all, the objects of the power; or

15(iv) a testamentary residuary gift to all, and only
16to all, the objects of the power.

17(2) The objects of the power described in paragraph (1)
18(iii) and (iv) who have a common ancestor shall be only those
19descendants of the common ancestor determined on a per
20stirpes basis.

21(c) Necessity of donee's specific reference to power.--A
22power of appointment may be exercised only by specific reference
23to the power if the instrument creating the power so requires.

24(d) Exercise before testamentary power granted.--In the
25absence of a contrary intent appearing in the instrument
26creating a power of appointment exercisable at the donee's death
27or in the donee's instrument exercising the power, the donee's
28instrument may exercise a power of appointment existing at the
29donee's death even though the power was granted after the date
30of the donee's instrument.

1(e) Testamentary powers.--

2(1) Notwithstanding any contrary provision in an
3instrument creating a power of appointment, a testamentary
4power of appointment shall not be exercisable in favor of the
5donee or the donee's creditors.

6(2) A grant of a testamentary power to appoint to the
7donee's creditors shall be construed as a power to appoint to
8the creditors of the donee's estate.

9(3) An attempted exercise of a testamentary power of
10appointment in favor of the donee's creditors shall be
11construed as an exercise in favor of those creditors of the
12donee's estate who were also creditors of the donee at the
13time of the donee's death.

14(4) If the donee is an issue of the donor, a
15testamentary power of appointment to appoint to the donor's
16issue shall not be exercisable in favor of the donee or the
17donee's estate.

18§ 7603. Contract to exercise power.

19(a) Contract prohibited.--Unless the donor and donee are the
20same person, the donee of a power of appointment that is not
21presently exercisable may not contract to exercise the power.

22(b) Actions for recovery.--A prohibited contract under
23subsection (a), if made, may not be the basis of an action for
24specific performance or damages, but the promisee can obtain
25restitution from the donee of the value given for the promise,
26unless the donee has exercised the power pursuant to the
27contract.

28(c) No limitation on disclaimer or release.--This section
29does not limit the power of a donee to disclaim or release a
30power of appointment in whole or in part.

1§ 7604. Manner of appointment.

2(a) Outright or in trust.--Subject to section 7602(e)
3(relating to exercise of powers of appointment), unless
4expressly prohibited by the instrument creating a power of
5appointment, a donee may exercise a power by appointing in any
6manner, including, but not limited to:

7(1) Appointing outright to one or more objects of the
8power.

9(2) Appointing to one or more trustees to hold the
10appointive property in trust for the benefit of one or more
11objects of the power and specifying the terms and
12administrative provisions of the trust and the powers and
13duties of the trustees, even if the trustees themselves are
14not objects of the power.

15(3) Creating a broad or limited power of appointment
16exercisable by any one or more objects of the original power
17to whom the donee could have appointed outright, even if some
18of the objects of the new power are not among the objects of
19the original power, provided that if the original power is a
20limited power, other than a power to appoint to the donee's
21creditors or the creditors of the donee's estate:

22(i) All the objects of the original power are among
23the objects of the new power.

24(ii) All the takers in default of exercise of the
25new power are among the objects of the original power.

26(b) Exclusive and nonexclusive powers.--Unless the
27instrument creating a power of appointment expressly specifies a
28minimum share of, a minimum pecuniary amount of or a particular
29item of appointive property to be appointed to an object of the
30power, the donee may exclude any object of the power as the

1donee deems appropriate.

2§ 7605. Antilapse provision.

3(a) General rule.--

4(1) Subject to paragraphs (2) and (3), in the absence of
5a contrary intent appearing in the instrument creating a
6power of appointment or, in the donee's instrument,
7exercising the power, an exercise of the power of appointment
8in favor of any of the following, whether designated by name
9or as one of a class, shall not fail if the appointee is not
10living at the time the appointment becomes effective:

11(i) A child or other issue of the donee.

12(ii) A brother or sister of the donee.

13(iii) A child of a brother or sister of the donee.

14(2) Paragraph (1) applies if:

15(i) One or more issues of the appointee are living
16at the time the appointment becomes effective.

17(ii) The issue under subparagraph (i), per stirpes,
18are objects of the power.

19(3) The property appointed to the deceased appointee
20shall pass per stirpes to the appointee's issue living at the
21time the appointment becomes effective, but the appointment
22to a brother or sister or child of a brother or sister of the
23donee shall fail to the extent the property would pass to the
24spouse or issue of the donee if the appointment were to
25lapse.

26(b) Lapsed share of residue.--In the absence of a contrary
27intent appearing in the donee's instrument exercising a power of
28appointment, if an appointment of an amount or share of the
29residue of the property subject to the power fails, the amount
30or share shall pass to the other appointees of the residue of

1the property subject to the power, if any, in proportion to
2their shares in the residue of the property subject to the
3power.

4§ 7606. Partially effective exercise.

5In the absence of a contrary intent appearing in the
6instrument creating a power of appointment or in the donee's
7instrument exercising the power, a partially ineffective
8exercise of a power of appointment shall not make ineffective
9any otherwise effective portion of the exercise, unless the
10appointment regarded as a whole constitutes such an integrated
11plan that the parts cannot be separated without defeating the
12plan.

13Section 12. Sections 7710.1(c), 7722 and 7740.7(b) of Title
1420 are amended to read:

15§ 7710.1. Nonjudicial settlement agreements - UTC 111.

16* * *

17(c) Exception.--A nonjudicial settlement agreement is valid
18only to the extent it [does not violate] is not inconsistent 
19with a material purpose of the trust and includes terms and
20conditions that could be properly approved by the court under
21this chapter or other applicable law.

22* * *

23§ 7722. Representation of parties in interest in general.

24(a) Judicial proceeding.--In a judicial proceeding involving
25a trust matter, an order or decree of the court that binds the
26representative [or representatives] is binding upon a person,
27class of persons or both represented in accordance with section
287723 (relating to representatives and persons represented) if:

29(1) the trustee notifies the [representatives]
30representative in writing whom [they represent, they do] he
 

1represents and the representative does not decline the
2representation as provided in section 7725 (relating to
3notice of representation) [and they act in good faith.];

4(2) a petitioner, whether or not a trustee, avers the
5representation in a petition before the court, the
6representative is the petitioner or a respondent over whom
7the court has jurisdiction and, if a respondent, the
8representative does not decline the representation in a
9responsive pleading filed and served as required by law; or

10(3) the representative has signed a certification of 
11representation described in subsection (d) and has not 
12rescinded the certification on the court's records by the 
13time the court acts upon the petition.

14(b) Nonjudicial resolution.--In a nonjudicial resolution of
15a trust matter, notice to, the consent or approval of or the
16waiver or release by the representative [or representatives] is
17binding upon a person, class of persons or both represented in
18accordance with section 7723 if:

19(1) the trustee notifies the [representatives]
20representative in writing whom [they represent, they do] he 
21represents and the representative does not decline the
22representation as provided in section 7725 [and they act in
23good faith.]; or

24(2) the representative has signed a certification of
25representation described in subsection (d) and has not
26rescinded the certification in a writing received by the
27trustee by the time of the nonjudicial settlement.

28(c) Permissible consideration.--In making decisions, a
29representative may consider the general benefit accruing to the
30living members of the family of the person represented.

1(d) Certification of representation.--

2(1) A certification signed by the representative
3describing his representation of another person, class of
4persons or both in accordance with section 7723 may be filed
5with:

6(i) the court, in the case of a judicial proceeding;
7or

8(ii) the trustee, in the case of a nonjudicial
9resolution of a trust matter.

10(2) Subject to paragraph (3), a certification of
11representation may be rescinded in a writing signed by the
12representative and filed with:

13(i) the court at any time before the court acts in
14reliance upon the certification, in the case of a
15judicial proceeding; or

16(ii) the trustee before a trust matter is resolved
17without application to the court.

18(3) A representative's rescission of a certification of
19representation shall have no effect upon actions taken by a
20trustee in good faith reliance upon the certification.

21§ 7740.7. Division of trusts.

22* * *

23(b) With court approval.--The court, for cause shown, may
24authorize the division of a trust into [two] separate trusts
25upon such terms and conditions and with notice as the court
26shall direct.

27* * *

28Section 13. Section 7765(a), (b) and (c) of Title 20 are
29amended and the section is amended by adding a subsection to
30read:

1§ 7765. Resignation of trustee; filing resignation.

2[(a) Court approval.--A trustee may resign with court
3approval.

4(b) Without court approval if authorized by trust
5instrument.--A trustee may resign without court approval if
6authorized to resign by the trust instrument.

7(c) Without court approval and without authorization in
8trust instrument.--

9(1) Unless expressly provided to the contrary in the
10trust instrument, an individual trustee may resign without
11court approval and without authorization in the trust
12instrument if:

13(i) there is at least one cotrustee and all
14cotrustees consent in writing to the resignation; and

15(ii) all the qualified beneficiaries consent in
16writing to the resignation.

17(2) This subsection shall not authorize the sole trustee
18of a trust to resign unless the trust instrument names a
19successor trustee or provides a method for appointing a
20successor trustee, and in either case the resignation shall
21not be effective until the successor trustee accepts the
22appointment in writing.]

23(a.1) General rule.--A trustee may resign:

24(1) with court approval;

25(2) without court approval if authorized to resign by
26the trust instrument; or

27(3) pursuant to a nonjudicial settlement agreement
28described in section 7710.1 (relating to nonjudicial
29settlement agreements - UTC 111).

30* * *

1Section 14. Section 7780.3 of Title 20 is amended by adding 
2subsections to read:

3§ 7780.3. Duty to inform and report.

4* * *

5(k.1) Nomination by current beneficiary.--In a writing given
6to the trustee, a current beneficiary of a trust may nominate
7another person to receive, on behalf of the current beneficiary,
8the notices required by this section. By giving the notices
9required by this section to the nominee of the current
10beneficiary, the trustee satisfies the trustee's duty to give to
11the current beneficiary the notices required by this section if:

12(1) the trustee notifies the nominee that the notice is
13being given to the nominee as representative of the current
14beneficiary and that future notices required by this section
15will be given to the nominee in the same capacity; and

16(2) the nominee does not decline to receive the notices
17on behalf of the current beneficiary in a writing given to
18the trustee no later than 60 days after receipt of the notice
19described in paragraph (1).

20(k.2) Reliance on nomination.--The trustee may rely upon the
21current beneficiary's nomination of another person to receive
22the notices required by this section on behalf of the current
23beneficiary and the nominee's presumed acceptance of that
24representation under subsection (k.1)(2) until the trustee
25receives a written rescission of the nomination from the current
26beneficiary or a written declination to receive further notices
27from the nominee. No such rescission or declination shall render
28ineffective any notice given by the trustee to the nominee
29before the trustee received the rescission or declination.

30* * *

1Section 15. Section 7785(a) of Title 20 is amended by adding
2paragraphs to read:

3§ 7785. Limitation of action against trustee.

4(a) Imposed by trustee's written reports.--

5* * *

6(3) In a writing given to the trustee, a beneficiary of
7a trust may nominate another person to receive, on behalf of
8the beneficiary, the reports required by this section. By
9giving the reports required by this section to the nominee of
10the beneficiary, the trustee satisfies the trustee's duty to
11give the beneficiary the reports required by this section if:

12(i) the trustee notifies the nominee that the report
13and future reports required by this section are being
14given to the nominee as representative of the
15beneficiary; and

16(ii) the nominee does not decline to receive reports
17on behalf of the beneficiary in a writing given to the
18trustee no later than 60 days after receipt of the notice
19described in this subsection.

20(4) The trustee may rely upon the beneficiary's
21nomination of another person to receive the reports required
22by this section on behalf of the beneficiary and the
23nominee's presumed acceptance of that representation under
24this subsection until the trustee receives a written
25rescission of the nomination from the beneficiary or a
26written declination to receive further reports from the
27nominee. No such rescission or declination shall render
28ineffective any report given by the trustee to the nominee
29before the trustee received the rescission or declination.

30* * *

1Section 16. Section 7792 of Title 20 is amended to read:

2§ 7792. Powers, duties and liabilities identical with personal
3representatives.

4The provisions concerning the powers, duties and liabilities
5of a trustee shall be the same as those set forth in the
6following provisions of this title for the administration of a
7decedent's or a minor's estate:

8Section 3184 (relating to discharge of personal
9representative and surety).

10Section 3321(d) and (e) (relating to nominee registration;
11corporate fiduciary as agent; deposit of securities in a
12clearing corporation; book-entry securities).

13Section 3323 (relating to compromise of controversies).

14Section 3324 (relating to death or incapacity of fiduciary).

15Section 3332 (relating to inherent powers and duties).

16Section 3353 (relating to order of court).

17Section 3354 (relating to power given in governing
18instrument).

19Section 3355 (relating to restraint of sale).

20Section 3356 (relating to purchase by personal
21representative).

22Section 3358 (relating to collateral attack).

23Section 3359 (relating to record of proceedings; county where
24real estate lies).

25Section 3532(c) (relating to at risk of personal
26representative).

27Section 17. Title 20 is amended by adding a chapter to read:

28CHAPTER 79

29CHARITABLE INSTRUMENTS

30Sec.

17901. Short title of chapter.

27902. Definitions.

37903. Deemed provisions of governing instrument.

47904. Power to amend governing instrument.

57905. Court authority.

67906. Applicability.

7§ 7901. Short title of chapter.

8This chapter shall be known and may be cited as the
9Charitable Instruments Act.

10§ 7902. Definitions.

11The following words and phrases when used in this chapter
12shall have the meanings given to them in this section unless the
13context clearly indicates otherwise:

14"Charitable organization." A corporation, trust or other
15instrumentality governed by Pennsylvania law, including:

16(1) A trust described in section 4947(a)(1) or (2) of
17the Internal Revenue Code of 1986 (Public Law 99-514, 26
18U.S.C. § 4947(a)(1) or (2)), which is or is treated as a
19private foundation under section 509 of the Internal Revenue
20Code of 1986 (26 U.S.C. § 509).

21(2) A trust governed by Pennsylvania law that is or is
22treated as a pooled income fund under section 642(c)(5) of
23the Internal Revenue Code of 1986 (26 U.S.C. § 642(c)(5)).

24§ 7903. Deemed provisions of governing instrument.

25(a) Effect of deemed provisions.--The governing instrument
26of a charitable organization is deemed to include provisions,
27the effects of which are to:

28(1) Require distributions for each taxable year in such
29amounts and at such times and in such manner as not to
30subject the organization to tax under section 4942 of the

1Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
24942).

3(2) Prohibit the organization from:

4(i) Engaging in an act of self-dealing, as defined
5in section 4941(d) of the Internal Revenue Code of 1986
6(26 U.S.C. § 4941(d)).

7(ii) Retaining excess business holdings, as defined
8in section 4943(c) of the Internal Revenue Code of 1986
9(26 U.S.C. § 4943(c)).

10(iii) Making an investment in such manner as to
11subject the organization to tax under section 4944 of the
12Internal Revenue Code of 1986 (26 U.S.C. § 4944).

13(iv) Making a taxable expenditure, as defined in
14section 4945(d) of the Internal Revenue Code of 1986 (26
15U.S.C. § 4945(d)).

16(b) Effect of contrary provision.--The deemed provisions
17under subsection (a) supersede any contrary provision of the
18governing instrument.

19(c) Applicability.--This section applies only to the extent
20that the charitable organization is subject to one or more of
21the sections of the Internal Revenue Code of 1986 set forth in
22subsection (a).

23§ 7904. Power to amend governing instrument.

24The trustees or directors of every charitable organization
25have the power, acting alone, without the approval of a member,
26court, donor or beneficiary, to amend the instrument governing
27the charitable organization in any manner required for the sole
28purpose of ensuring that:

29(1) Gifts and bequests to the charitable organization
30qualify for charitable deductions available for Federal

1income, gift and estate tax purposes.

2(2) The charitable organization qualifies for tax
3exemptions available for Federal income tax purposes.

4§ 7905. Court authority.

5Nothing in this chapter precludes a court of competent
6jurisdiction from authorizing a deviation from the express terms
7of an instrument governing a charitable organization.

8§ 7906. Applicability.

9This chapter shall apply to:

10(1) A charitable organization created after December 31,
111969.

12(2) A charitable organization created before January 1,
131970, unless a court of competent jurisdiction in a
14proceeding instituted before January 1, 1972, explicitly
15decided that the operation of this chapter would
16substantially impair the accomplishment of the purposes of
17the charitable organization involved in that proceeding.

18Section 18. Section 8113(f) of Title 20 is amended to read:

19§ 8113. Charitable trusts.

20* * *

21(f) Charitable organizations.--For a charitable organization
22defined under [the act of June 17, 1971 (P.L.181, No.23), known
23as the Charitable Instruments Act of 1971,] Chapter 79 (relating 
24to charitable instruments) the provisions of [that act] Chapter
2579 shall supersede subsection (c) if necessary to comply with
26the minimum investment return requirements.

27Section 19. This act shall apply as follows:

28(1)  Except as set forth in paragraph (2), this act shall
29apply to all powers of attorney executed on or after the
30effective date of this section.

1(2) (i) Nothing in this act shall be construed to limit
2the effectiveness of powers of attorney in effect prior
3to the effective date of this section.

4(ii)  The amendment of 20 Pa.C.S. § 5603(r) shall
5apply to all powers of attorney executed before, on or
6after the effective date of this section.

7(3) The addition of 20 Pa.C.S. Ch. 76 shall apply to all
8powers of appointment created before, on or after the
9effective date of that chapter.

10(4) The addition of 20 Pa.C.S. Ch. 79 is a continuation
11of the act of June 17, 1971 (P.L.181, No.23), known as the
12Charitable Instruments Act of 1971. The following apply:

13(i) All activities initiated under the Charitable
14Instruments Act of 1971 shall continue and remain in full
15force and effect and may be completed under 20 Pa.C.S.
16Ch. 79. Resolutions, orders, regulations, rules and
17decisions which were made under the Charitable
18Instruments Act of 1971 and which are in effect on the
19effective date of this section shall remain in full force
20and effect until revoked, vacated or modified under 20
21Pa.C.S. Ch. 79. Contracts, obligations and agreements
22entered into under the Charitable Instruments Act of 1971
23are not affected nor impaired by the repeal of the
24Charitable Instruments Act of 1971.

25(ii) Any difference in language between 20 Pa.C.S.
26Ch. 79 and the Charitable Instruments Act of 1971 is
27intended only to conform to the style of the Pennsylvania
28Consolidated Statutes and is not intended to change or
29affect the legislative intent, judicial construction or
30administrative interpretation and implementation of the

1Charitable Instruments Act of 1971.

2Section 20. Repeals are as follows:

3(1) The General Assembly declares that the repeal under
4paragraph (2) is necessary to effectuate the addition of 20
5Pa.C.S. Ch. 79.

6(2) The act of June 17, 1971 (P.L.181, No.23), known as
7the Charitable Instruments Act of 1971, is repealed.

8Section 21. This act shall take effect as follows:

9(1) The following provisions shall take effect January 
101, 2015<-, or in 180 days, whichever is later:

11(i) The amendment of 20 Pa.C.S. § 3314.

12(ii) The amendment of 20 Pa.C.S. § 3315.

13(iii) The amendment of 20 Pa.C.S. § 3546.

14(iv) The amendment of 20 Pa.C.S. § 5456(a).

15(v) The amendment of 20 Pa.C.S. § 5460(a).

16(vi) The addition of 20 Pa.C.S. § 5602(a)(24) and
17(25).

18(vii) The amendment or addition of 20 Pa.C.S. §
195603(d), (r), (u.2) and (u.3).

20(viii) The amendment or addition of 20 Pa.C.S. §
215604(c)(1) and (3).

22(ix) The amendment of 20 Pa.C.S. § 5610.

23(x) The addition of 20 Pa.C.S. § 5612.

24(xi) The repeal of 20 Pa.C.S. § 6103.

25(xii) The addition of 20 Pa.C.S. § 6103.1.

26(xiii) The amendment of 20 Pa.C.S. § 7710.1(c).

27(xiv) The amendment of 20 Pa.C.S. § 7722.

28(xv) The amendment of 20 Pa.C.S. § 7740.7(b).

29(xvi) The amendment or addition of 20 Pa.C.S. §
307765(a), (a.1), (b) and (c).

1(xvii) The addition of 20 Pa.C.S. § 7780.3(k.1) and 
2(k.2).

3(xviii) The addition of 20 Pa.C.S. § 7785(a)(3) and
4(4).

5(xix) The amendment of 20 Pa.C.S. § 7792.

6(xx) Section 19(1) and (2).

7(2) The remainder of this act shall take effect
8immediately.