The Short Answer

You can create a trust in Pennsylvania, but whether it actually protects your assets depends on the type of trust and who can benefit from it. In many cases, a revocable living trust helps with probate avoidance and management—but it generally does not shield your assets from your own creditors while you’re alive.

What Pennsylvania Law Says

Pennsylvania’s Uniform Trust Code sets the baseline requirements for creating a valid trust (capacity, a signed written trust instrument, identifiable beneficiaries, and a trustee with duties). It also addresses when creditors can reach trust assets—an issue that often determines whether a trust provides meaningful “asset protection.”

The Statute

The primary law governing trust creation is 20 Pa.C.S. § 7732.

This statute establishes that a trust is created only if (among other requirements) the settlor has capacity, signs a writing showing intent and terms, there is a definite beneficiary (or a permitted exception), and the trustee has duties to perform.

For asset-protection questions, Pennsylvania law also makes an important point about creditor access to certain trusts. For example, during the settlor’s lifetime, property in a revocable trust is subject to claims of the settlor’s creditors. See 20 Pa.C.S. § 7745(1).

And while a properly drafted spendthrift clause can restrict a beneficiary’s creditors from reaching trust distributions before the beneficiary receives them, spendthrift protection has limits and exceptions. See 20 Pa.C.S. § 7742 and the exceptions in 20 Pa.C.S. § 7743.

If your goal is primarily probate avoidance and smoother administration (not creditor protection), you may also want to read: What Are the Benefits of a Trust vs. a Will in Pennsylvania?.

Why You Should Speak with an Attorney

While the statutes provide the general rules, using a trust to “protect assets” is highly fact-specific—and the wrong structure can create a false sense of security. Legal outcomes often depend on:

• Creditor exposure: Under Pennsylvania law, assets in a revocable trust are generally reachable by the settlor’s creditors during life, which can defeat the purpose if you’re trying to shield assets. See 20 Pa.C.S. § 7745.
• Burden of proof and documentation: If a trust is challenged (capacity, undue influence, unclear terms, improper funding), the quality of the drafting and the surrounding facts can decide the outcome.
• Exceptions and “gotchas”: Spendthrift language may help protect a beneficiary’s interest, but there are statutory exceptions (including certain support-related claims and government claims). See 20 Pa.C.S. § 7743.

Because trusts intersect with creditor rights, taxes, probate planning, and title/beneficiary designations, trying to do this without counsel can lead to expensive mistakes—especially if the trust is never properly funded or doesn’t match your protection goals.

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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.