31 Pa. Code § 163.5 - General requirements for trust agreements
(a) A trust agreement shall be entered into
between the beneficiary, the grantor and a trustee.
(b) A trust agreement shall be established
for the sole benefit of the beneficiary.
(c) A trust agreement shall be made subject
to and governed by the laws of the state in which the trust is
established.
(d) A trust agreement
may not be subject to any conditions or qualifications outside of the trust
agreement.
(e) A trust agreement
may not be conditioned upon any other agreements or documents, except for the
reinsurance agreement for which the trust agreement is established.
(f) A trust agreement may not transfer
liability from the trustee for the trustee's own negligence, willful misconduct
or lack of good faith.
(g) A trust
agreement shall create a trust account into which the assets shall be
deposited.
(h) A trust agreement
shall prohibit invasion of the trust corpus for the purpose of paying
compensation to or reimbursing the expenses of the trustee.
(i) A trust agreement shall prohibit the
grantor from terminating the trust agreement on the basis of the insolvency of
the beneficiary.
Notes
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