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 didn't anticipate.

Trust modification (20 Pa.C.S. § 7740.1): If circumstances have changed substantially since the trust was created, a beneficiary or trustee can petition to modify terms. The court will modify a trust if the modification furthers the trust's purposes and is not inconsistent with a material purpose. 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: The court may remove a trustee for breach of fiduciary duty, serious conflict of interest, inability to serve effectively, substantial change in circumstances, or persistent failure to administer the trust. Removal does not require proof of dishonesty — persistent incompetence or unresponsiveness is sufficient.

Compelled accountings: If a trustee refuses to account voluntarily, a beneficiary can petition the court to compel a formal accounting. The beneficiary is entitled to see every receipt, disbursement, and investment decision — and the trustee bears the burden of proving each transaction was proper.

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 bench trial only — there is no jury. 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're a beneficiary with concerns, request an informal accounting before filing — litigation is expensive, and many disputes resolve once the trustee knows they're being watched.