Trust Litigation in Orphans' Court

Orphans' Court has exclusive jurisdiction over virtually all trust-related disputes in Pennsylvania. Trust litigation is governed by 20 Pa.C.S. Chapter 77 (the Uniform Trust Act) and the procedural rules of the Orphans' Court.

Common Trust Disputes

Trust interpretation and construction: When the terms of a trust are ambiguous or disputed, any interested party can petition the court for a declaratory judgment on the trust's meaning. This frequently arises with vague distribution standards ("for health, education, and support"), conflicting provisions, or situations the settlor did not anticipate.

Trust modification (20 Pa.C.S. §§ 7740.1, 7740.2): A noncharitable irrevocable trust can be modified by consent of the settlor and all beneficiaries even against a material purpose, or by consent of all beneficiaries with court approval if the modification is not inconsistent with a material purpose (§ 7740.1). Separately, where circumstances have arisen that the settlor apparently did not anticipate, the court may modify the trust if doing so will further the trust's purposes (§ 7740.2). Tax law changes, family changes, and asset value shifts are common triggers.

Trust termination: A trust can be terminated early when its purposes have been fulfilled, have become impracticable, or when all beneficiaries consent and no material purpose would be frustrated. The trustee must account for all assets before termination.

Trustee removal (20 Pa.C.S. § 7766(b)): Removal is not automatic. The court must find all three of the following: that removal best serves the interests of the beneficiaries, that removal is not inconsistent with a material purpose of the trust, and that a suitable cotrustee or successor trustee is available. The court must also find one of four grounds: a serious breach of trust, lack of cooperation among cotrustees that substantially impairs administration of the trust, failure to administer the trust effectively because of the trustee's unfitness, unwillingness, or persistent failures, or a substantial change of circumstances. A corporate reorganization of an institutional trustee is not itself a substantial change of circumstances. Dishonesty is not required, but persistent failure standing alone does not compel removal, because the court must still make the three findings above.

Compelled accountings: If a trustee refuses to account voluntarily, a beneficiary can petition the court to order the trustee to file an account (20 Pa.C.S. § 7781(b)(4)). A beneficiary of an irrevocable trust is also entitled, on request, to information about the trust's administration, and a current beneficiary who receives the statutory notice may request a copy of the trust instrument and written financial reports at least annually (20 Pa.C.S. § 7780.3). Once the account is filed, a beneficiary who disputes an item files written objections that are specific as to description and amount and that state the reasons behind each one (Pa. O.C. Rule 2.7). Filing an objection does not by itself shift the burden of proof. As a general rule, the objecting beneficiary must prove the breach and the resulting loss.

Breach of fiduciary duty / surcharge: The ultimate remedy. A trustee who mismanages assets, self-deals, or fails to invest prudently can be surcharged; held personally liable for losses. See our section on What is a Surcharge?

Principal and Income Act

Many trust disputes involve the allocation of receipts and expenses between income beneficiaries (who receive current distributions) and remaindermen (who receive the trust assets when the income interest ends). Pennsylvania's Uniform Principal and Income Act (20 Pa.C.S. Chapter 81) governs these allocations. Common disputes: whether capital gains are "income" or "principal," how to allocate expenses of sale, and the trustee's power to adjust between principal and income under § 8104.

Practical Considerations

Trust litigation in Orphans' Court is decided by a judge. There is no right to a jury trial on the trust issues themselves. If a substantial dispute of fact arises over a deceased settlor's title to property, a party in interest is entitled to have that issue tried to a jury (20 Pa.C.S. § 777(a)). Under 20 Pa.C.S. § 777(c), the court has discretion to impanel a jury on a question of fact, but that verdict is advisory only and the judge still decides the case. In practice these matters are tried to the bench. The judge evaluates all evidence, including the trust document, the trustee's records, and expert testimony. These cases are document-intensive and the quality of the trustee's record-keeping often determines the outcome. If you are a beneficiary with concerns, request an informal accounting before filing; litigation is expensive, and many disputes resolve once the trustee knows they are being watched.

Legal and factual content on this page was last verified: Aug. 2026. If you are reading this significantly after that date, confirm key provisions with current statute text or contact our office.