Can a Pennsylvania trust with a corporate trustee be transferred to South Carolina?

Full question:

can a trust with a corporate trustee in penn. be transferred to corporate trustee in south carolina?

• Category: Trusts
• Date: 04/07/2025
• State: South Carolina

Answer:

The trust document's terms dictate how a successor trustee is appointed. If the document does not specify a successor or a procedure for appointing one, a court with jurisdiction over the trust will appoint a successor. Similarly, if the trust does not outline a resignation process, a court must approve any resignation. Until this approval, the trustee retains all fiduciary responsibilities and liabilities.

Generally, a trust created in another state can be enforced in South Carolina, provided it complies with the laws of the state where it was created. A foreign corporate trustee must qualify to do business in South Carolina only if it maintains the principal place of trust administration there. If the principal place of administration is not in South Carolina, qualification is not required. A South Carolina court can appoint a foreign trustee and move the principal place of administration to the trustee's state of organization.

Some states determine a trust's domicile for income tax purposes based on the trustee's residency or where the trust is administered. Appointing a trustee from one of those states could subject the trust to state income taxation that might not otherwise apply. We recommend consulting a local attorney or tax professional to review all relevant facts and documents.

For reference, see South Carolina statute § 62-7-403, which states that a trust not created by will is valid if its creation complies with the law of the jurisdiction where the trust instrument was executed or the law of the jurisdiction where the settlor was domiciled, had a place of abode, or was a national; where a trustee was domiciled or had a place of business; or where any trust property was located.