How to Settle a Trust in Pennsylvania
Many people set up living trusts as an alternative to a will. Trusts do not have to go through the probate process and therefore, in some cases, heirs may get their inheritances faster. However, under Pennsylvania law, the trust administrator must use trust funds to pay the estate's debts if the deceased did not also leave a will. Settling a trust in Pennsylvania can take just as long as probate, which is a three- to six-month process in most cases, as of 2011.
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Instructions
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Find out if the deceased also left a will. If the deceased person left a will, contact the executor of the estate to find out who is handling what aspects of settling the trust. The executor usually pays taxes and debts out of the estate's funds, but if the estate doesn't have enough funds, you may have to pay some debts out of the trust funds.
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Read the trust documents to find out who the beneficiaries are and the terms under which they receive money or property.
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Transfer the deed of a house into a beneficiary's name if the trust specifies that you should do so. Go to the register of deeds and sign a new deed to the house to transfer ownership to the new owner. Have the clerk notarize your signature. Give the deed and the house keys to the new owners. If you are selling the house to cover debts or because the trust terms require you to do so, pay for costs such as hiring a real estate agent using funds in the trust. Transfer the deed to the new owners and use the proceeds from the sale to pay the estate's debts or distribute them to beneficiaries.
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Deposit trust funds in beneficiaries' bank accounts or write a check to each of them from the trust. Provide a receipt with the distribution to the beneficiary. Distribute funds per the trust document.
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