Marc R. Lynde, Esq.
In October 2024, Pennsylvania’s comprehensive Uniform Trust Code amendments (Act 64 of 2024) took effect, including the adoption of the Uniform Directed Trust Act (20 Pa.C.S. §§ 7780.11 to 7780.27). This new subchapter fundamentally changes how trust administration can be structured in Pennsylvania by allowing settlors to split fiduciary responsibilities among multiple parties.
A directed trust is one where the trust instrument grants a “power of direction” to a person (called a “trust director”) who is not serving as trustee . The trust director exercises that power over specific aspects of trust administration (typically investment decisions, distribution decisions, or both) while a “directed trustee” handles the remaining administrative functions (§ 7780.12).
This structure allows families to use a corporate trustee for custody and administration while keeping investment or distribution decisions with a trusted family member or advisor.
A trust protector is a specific type of trust director authorized by the trust instrument to modify the terms of the trust itself . Pennsylvania’s statute provides an illustrative (not exhaustive) list of powers that can be granted to a trust protector:
Critically, unless the trust instrument provides otherwise, no trust protector may exercise a power in a way that personally benefits the protector or creates a taxable power of appointment (§ 7780.17(c)).
The Act establishes clear liability rules that protect directed trustees from decisions they didn’t make:
Trust director liability (§ 7780.19): A trust director has the same fiduciary duty and liability as a trustee in a comparable position. This means the trust director is held to the full fiduciary standard , not a reduced one. The terms of the trust may vary the trust director’s duty or liability, but only to the same extent they could vary a trustee’s.
Directed trustee liability (§ 7780.20): A directed trustee must take reasonable action to comply with the trust director’s exercise of a power of direction, and is not liable for doing so; unless compliance would constitute willful misconduct on the trustee’s part, defined as intentional conduct that is malicious, designed to defraud, or unconscionable (§ 7780.12). The directed trustee has no duty to monitor the trust director and is not liable for the director’s actions (§ 7780.22).
Family investment management: A family member with investment expertise serves as trust director for investments while a bank serves as directed trustee handling administration, accounting, and tax filings.
Distribution decisions: A family member who knows the beneficiaries’ needs serves as distribution director while an institutional trustee holds and manages assets.
Future-proofing: A trust protector can modify the trust to respond to changes in tax law, family circumstances, or beneficiary needs, without going to Orphans’ Court . This is particularly valuable for irrevocable trusts that might otherwise become inflexible.
New Law, New Opportunities
Because the Directed Trust Act is new (effective October 2024), many existing irrevocable trusts were drafted without these provisions. If you have an existing trust that could benefit from splitting responsibilities or adding a trust protector, modification may be possible under § 7740.1 (by consent) or § 7740.2 (by court order for unanticipated circumstances). Newly drafted trusts should consider whether directed trust provisions serve the family’s goals.
Statutory content on this page was last verified against Pennsylvania statutes (20 Pa.C.S.; 72 P.S. Art. XXI): February 2026 . If you are reading this significantly after that date, confirm key provisions with current statute text or contact our office.
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