חוק הנאמנויות של אילינוי, סעיף אחר סעיף

הטקסט המלא של מדריך זה באנגלית; התקציר שלמעלה בשפתכם. תקצירי החוקים והנוסח האנגלי נשארים המקור המחייב.

נבדק מול חוקי אילינוי בתאריך 2026-10-11. מידע כללי, לא ייעוץ משפטי; הנוסח הרשמי קובע.

Article 1: General provisions and definitions

760 ILCS 3/103 ↗ Definitions: Defines the Code's terms — among them a "qualified beneficiary", each current beneficiary and presumptive remainder beneficiary; a "current beneficiary", a distributee or permissible distributee of income or principal on the date of determination; a "presumptive remainder beneficiary", who would be a distributee if the trust, or every current interest, ended that day; "revocable"; "settlor"; "spendthrift provision"; "trust accounting", the written communications for an accounting year that describe the property, liabilities, receipts and disbursements including the trustee's compensation, the closing values to the extent feasible and the other material facts; and "trust instrument".
760 ILCS 3/105 ↗ Default and mandatory rules: The trust instrument's terms prevail over Articles 1 through 10 except the rules the section lists: the requirements for creating a trust, the trustee's duty of good faith, a lawful purpose, the designated-representative rules, the 21-year limit of section 409, the court's powers to modify or terminate, Article 5's creditor rules, an agent's express authorization, the court's adjustment of unreasonable compensation, and — for a trust that became irrevocable after January 1, 2020 — the information notice, the current-beneficiary and residue accountings and the right to the portions of the instrument that concern the beneficiary, together with the limits on exculpation, third parties' rights and the court's equitable powers.
760 ILCS 3/107 ↗ Governing law: The meaning and effect of a trust instrument are determined by the law of the jurisdiction the instrument designates or, absent a designation, the law of the jurisdiction with the most significant relationship to the matter; unless the instrument or a court order provides otherwise, Illinois law governs the administration while the principal place of administration is Illinois.
760 ILCS 3/108 ↗ Principal place of administration: The instrument's designation of a principal place of administration controls where a trustee's principal place of business or residence is there or part of the administration occurs there; a trustee has a continuing duty to administer at an appropriate place and may transfer the place after notice to the qualified beneficiaries not less than 60 days before, with five stated contents including an objection date not less than 60 days after the notice; a timely objection ends the trustee's authority to transfer without the court.
760 ILCS 3/109 ↗ Methods and waiver of notice: Notice or a document is sent in a manner reasonably suitable under the circumstances and likely to result in receipt — first-class mail, personal delivery, delivery to the last known residence or place of business, or a properly directed electronic message; a person whose identity or location is unknown and not reasonably ascertainable need not be notified; notice may be waived; receipt is presumed where the trustee has reasonable mailing or delivery procedures, and for electronic delivery only where the recipient has agreed to it.
760 ILCS 3/110 ↗ Others treated as qualified beneficiaries: A person appointed to enforce a trust for an animal or another noncharitable purpose has the rights of a qualified beneficiary, and so does the Attorney General for a charitable trust whose principal place of administration is Illinois.
760 ILCS 3/111 ↗ Nonjudicial settlement agreements: Interested persons may enter into a binding nonjudicial settlement agreement on the thirteen matters the section lists — the terms' validity and interpretation, approval of an accounting, a trustee's powers, appointment and removal, compensation, transfer of the place of administration, disputes, administrative modifications and, with the court's approval, termination; a charitable interest needs 60 days' written notice to the Attorney General, any interested person may ask the court to approve within 60 days after the effective date, and the agreement binds as a court order.
760 ILCS 3/115 ↗ Transfer of real property to trust: The transfer of real property to a trust requires a transfer of legal title to the trustee evidenced by a written instrument of conveyance.

Article 2: Judicial proceedings

760 ILCS 3/201 ↗ Role of court in administration of trusts: The court adjudicates a matter arising in the administration of a trust to the extent an interested person invokes its jurisdiction or the law provides; a trust is not subject to continuing judicial supervision unless the court orders it; a proceeding may concern any matter of the administration, including a request for instructions.
760 ILCS 3/204 ↗ Venue: Venue for a judicial proceeding involving a trust is the county of the trust's principal place of administration and, for a trust created by will while the estate is open, the county where the estate is administered; a trust with no trustee may be brought where a beneficiary resides or trust property lies.

Article 3: Representation

760 ILCS 3/301 ↗ Representation: basic effect: Notice, information, accountings or reports given to a person who may represent and bind another under this Article have the same effect as if given directly, and the representative's actions bind the person represented; a settlor may not represent a beneficiary in a nonjudicial settlement agreement, a consent termination or a decanting; the section ranks the representatives where several could act.
760 ILCS 3/303 ↗ Representation by others: An action by all qualified beneficiaries with legal capacity (or their representatives) binds the beneficiaries with successor, contingent or future interests; a court-appointed guardian, an agent under a power of attorney for property with authority over the question, or a parent without a material conflict may represent and bind an incapacitated person.
760 ILCS 3/304 ↗ Representation by person having substantially identical interest: A beneficiary who is incapacitated, unborn or unascertainable may be represented and bound by another beneficiary with a substantially similar interest in the question, to the extent there is no material conflict of interest.
760 ILCS 3/307 ↗ Designated representative: One or more individuals the instrument nominates, or a non-trustee the instrument authorizes to designate, may represent and bind a qualified beneficiary — but not a current beneficiary who is 30 or older and not incapacitated, not while serving as trustee, and not a fellow qualified beneficiary unless nominated in the instrument or closely related; a designated representative is a fiduciary who acts in good faith and in the represented beneficiary's best interest.

Article 4: Creation, validity, modification and termination of trust

760 ILCS 3/401 ↗ Methods of creating trust: A trust may be created by a transfer of property to a trustee during the settlor's lifetime or at death, by an owner's declaration of holding identifiable property as trustee, by exercising a power of appointment in favor of a trustee, by a court order, or by an authorized fiduciary's exercise of the decanting power.
760 ILCS 3/402 ↗ Requirements for creation: A trust is created only if the settlor has capacity and indicates an intention to create it, it has a definite beneficiary or is a charitable, animal or purpose trust, the trustee has duties to perform, and the same person is not the sole trustee and sole beneficiary; a beneficiary is definite if ascertainable now or in the future.
760 ILCS 3/407 ↗ Evidence of oral trust: Except as another statute requires, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.
760 ILCS 3/408 ↗ Trusts for domestic or pet animals: A trust for the care of one or more designated domestic or pet animals is valid and ends when no living animal is covered; its property is applied only to its purpose, an individual the instrument or the court names may enforce it, no filing or accounting is required by reason of it, the court may reduce an amount that substantially exceeds the intended use, and the unexpended property passes as the instrument directs or to the settlor or the settlor's heirs.
760 ILCS 3/410 ↗ Modification or termination of trust; proceedings for approval or disapproval: Beyond the methods of sections 411 through 414, a trust terminates to the extent it is revoked or expires under the instrument, no purpose remains to be achieved, or its purposes have become unlawful, contrary to public policy or impossible; a trustee, a beneficiary or, for a charitable interest, the Attorney General may ask the court to approve or disapprove a proposed modification, termination, combination or division.
760 ILCS 3/411 ↗ Modification or termination of noncharitable irrevocable trust by consent: A noncharitable irrevocable trust may be terminated on the consent of all beneficiaries if the court concludes its continuance is not necessary to achieve a material purpose, or modified if the modification is not inconsistent with one; a spendthrift provision is a factor, not a bar; where not all beneficiaries consent, the court may approve if a non-consenting beneficiary is treated equitably.
760 ILCS 3/412 ↗ Modification or termination because of unanticipated circumstances: The court may modify a trust's administrative or dispositive terms or terminate it where circumstances the settlor did not anticipate mean doing so furthers the trust's purposes, in accordance with the settlor's probable intention, and may modify administrative terms whose continuation would be impracticable, wasteful or impair the administration; a charitable interest may not be diminished except as cy pres allows.
760 ILCS 3/414 ↗ Modification or termination of uneconomic trust: After notice to the qualified beneficiaries, the trustee of a trust whose property is worth less than $100,000 may terminate it if the costs of continuing it will substantially impair its purpose, distributing to the current beneficiaries as the section directs after at least 30 days' notice to them; the court may also modify or terminate an uneconomic trust or replace the trustee; a trustee who is a current beneficiary may not exercise the power alone.
760 ILCS 3/417 ↗ Combination and division of trusts: After notice to the qualified beneficiaries, a trustee may consolidate trusts with substantially similar terms, sever a trust on a fractional basis, or segregate a specific amount or property into a separate account or trust — for any reason, including tax reasons — if no beneficiary's rights are impaired and the material purposes are not adversely affected, on terms substantially equivalent to the original's.

Article 5: Creditors' claims; spendthrift and discretionary trusts

760 ILCS 3/502 ↗ Spendthrift provision: A spendthrift provision is valid only if it prohibits both voluntary and involuntary transfer of a beneficiary's interest; a term that the interest is held subject to a "spendthrift trust" suffices; except as Article 5 provides, a creditor or assignee may not reach the interest or a distribution before the beneficiary receives it, and the provision does not prevent an appointment under a power of appointment.
760 ILCS 3/503 ↗ Exceptions to spendthrift provision: A spendthrift provision is unenforceable against a beneficiary's child, spouse or former spouse with a judgment or order for child support, a judgment creditor who provided services for the protection of the beneficiary's interest, and a claim of Illinois or the United States as a statute provides; such a claimant may obtain an order attaching present or future distributions, for unpaid child support only as a last resort.
760 ILCS 3/504 ↗ Discretionary distributions; effect of standard: Whether or not the trust has a spendthrift provision and whether or not the beneficiary is the trustee, a creditor may not compel a discretionary distribution or attach present or future discretionary distributions, except as the Code of Civil Procedure's section 2-1403 provides; a beneficiary-trustee's discretion for the trustee's own benefit limited by an ascertainable standard is reachable only as it would be were the beneficiary not trustee; the beneficiary may still sue for an abuse of discretion.
760 ILCS 3/505 ↗ Creditor's claim against settlor: During the settlor's lifetime a revocable trust's property is subject to the settlor's creditors to the extent not exempt; an irrevocable trust is reachable to the maximum that can be distributed to the settlor; after the settlor's death the property of a trust that was revocable at the death answers for the settlor's creditors' claims, the costs of administering the estate, the funeral expenses and the spouse's and children's awards to the extent the probate estate is inadequate — a claim barred against the personal representative being barred against the trust — and a trustee who distributes nine months or later after the death, without the personal representative's written insufficiency notice, is released from liability under the section.
760 ILCS 3/506 ↗ Overdue distribution: Whatever the spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal — including a distribution on termination, but not one subject to the trustee's discretion however phrased — that the trustee has not made within a reasonable time after the designated distribution date.
760 ILCS 3/507 ↗ Personal obligations of trustee: Trust property is not subject to the personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
760 ILCS 3/509 ↗ Trust for beneficiary with a disability: A discretionary trust for an individual with a substantial disability is not liable to reimburse the State or a public agency for financial aid or services to the individual, except to the extent the individual created or funded it or property was distributed to or is under the individual's control, with the exceptions the section states for a trust that complies with Medicaid reimbursement law; a court or the individual may irrevocably assign resources to an ABLE account or such a trust.

Article 6: Revocable trusts

760 ILCS 3/601 ↗ Capacity of settlor of revocable trust: The capacity required to create, amend, revoke or add property to a revocable trust is the same as that required to make a will.
760 ILCS 3/602 ↗ Revocation or amendment of revocable trust: The settlor may revoke a trust only if the instrument expressly provides that the trust is revocable or that the settlor has an unrestricted power of amendment, and may amend it only if the instrument expressly provides that it is revocable or amendable; revocation or amendment is by substantial compliance with the instrument's method or, if none is exclusive, by a later signed writing other than a will that refers to the trust; an agent may exercise the settlor's powers only if the power of attorney expressly authorizes it, and a trustee who does not know of a revocation or amendment is not liable for acting on the assumption that there was none.
760 ILCS 3/603 ↗ Settlor's powers; powers of withdrawal: While a trust is revocable and the settlor personally has capacity to revoke it, the beneficiaries' rights are subject to the settlor's control, the trustee's duties are owed exclusively to the settlor and the trustee may follow the settlor's direction even against the terms; while the settlor lacks that capacity, the duties are owed to the settlor and the current beneficiaries, the settlor's interests first; standing to contest the trustee's acts while the trust is revocable is the settlor's, the settlor's representative's and the estate's representative's, and a current beneficiary's only for the period of the settlor's incapacity.
760 ILCS 3/604 ↗ Limitation on action contesting validity of revocable trust; distribution of trust property: A proceeding to contest a trust that was revocable at the settlor's death is commenced within the earlier of 2 years after the death and — where the settlor's probated will gives the trust a legacy — the time to contest the will, or otherwise 6 months after the trustee sends the person a copy of the instrument with a notice of the trust's existence, the trustee's name and address and the 6-month period; nine months after the death the trustee may distribute under the instrument without liability unless a contest is pending or a potential contestant's notice is followed by a proceeding within 60 days; a beneficiary of an invalid trust returns the distribution with its income and appreciation.
760 ILCS 3/605 ↗ Revocation of provisions in revocable trust by divorce or annulment: Unless the instrument or the judgment expressly provides otherwise, a judicial termination of the settlor's marriage revokes every provision revocable by the settlor that pertains to the former spouse — gifts, interests, powers of appointment and fiduciary nominations — in an instrument executed before the judgment, and the trust is administered as if the former spouse had died at the judgment; a trustee without actual knowledge of the judgment is not liable for acting in good faith, and remarriage to the former spouse revives the provisions.

Article 7: Office of trustee

760 ILCS 3/701 ↗ Accepting or declining trusteeship: A person designated as trustee accepts by substantially complying with the instrument's method of acceptance or, where none is exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance; a designated trustee who does not accept within 120 days after receiving notice of the designation is deemed to have declined; without accepting, the designee may act to preserve the property if a declination is sent within those 120 days, and may inspect the property, without liability for good-faith acts.
760 ILCS 3/702 ↗ Trustee's bond: A trustee gives bond only if the court finds a bond is needed to protect the beneficiaries or the instrument requires it and the court has not dispensed with it; the court may set the amount and sureties; a corporate fiduciary qualified to do trust business in Illinois need not give bond even if the instrument requires it.
760 ILCS 3/703 ↗ Co-trustees: Co-trustees who cannot reach a unanimous decision may act by majority after prior written notice to, or written waiver by, each other co-trustee; each co-trustee participates unless unavailable or the function was delegated to another trustee, and where prompt action is needed the remaining co-trustee or a majority of them may act; a trustee may delegate to a co-trustee; a trustee who does not join in an action is not liable for it, but each trustee exercises reasonable care to prevent and redress a co-trustee's serious breach, and a notified dissenter who joins at the majority's direction is not liable unless the action is a serious breach.
760 ILCS 3/704 ↗ Vacancy in trusteeship; appointment of successor: A vacancy occurs when a designated trustee declines, cannot be identified or does not exist, resigns, is disqualified or removed, dies, has a guardian appointed or becomes incapacitated; it need not be filled while a co-trustee remains unless the administration is impaired; a vacancy that must be filled is filled by the person the instrument designates, then by a person appointed by a majority of the income distributees, then by the court; for a charitable interest the beneficiaries' appointment takes effect 30 days after written notice to the Attorney General's Charitable Trust Bureau unless waived.
760 ILCS 3/705 ↗ Resignation of trustee: A trustee may resign upon notice to the settlor, if living, to the beneficiaries who are distributees or permissible distributees of trust income, and to all co-trustees — or with the court's approval, which may impose conditions; resignation does not discharge the trustee's or the sureties' liability.
760 ILCS 3/706 ↗ Removal of trustee: The settlor, a co-trustee or a qualified beneficiary may ask the court to remove a trustee, or the court may act on its own, for a serious breach of trust, lack of cooperation among co-trustees that substantially impairs the administration, unfitness, unwillingness or persistent failure to administer effectively, or a substantial change of circumstances or the request of all qualified beneficiaries where removal best serves the beneficiaries and a suitable successor is available; the court may order interim relief.
760 ILCS 3/707 ↗ Delivery of property by former trustee: Unless a co-trustee remains or the court orders otherwise, a trustee who has resigned or been removed keeps a trustee's duties and the powers necessary to protect the property until it is delivered, and proceeds expeditiously to deliver the property in the trustee's possession to the co-trustee, successor or other person entitled to it.
760 ILCS 3/708 ↗ Compensation of trustee: Where the instrument does not specify the trustee's compensation, the trustee is entitled to compensation that is reasonable under the circumstances; where it does, the specified compensation, which the court may raise or lower if the duties are substantially different from those contemplated when the trust was created or the amount would be unreasonably low or high.
760 ILCS 3/709 ↗ Reimbursement of expenses: A trustee is reimbursed from the trust property, with interest as appropriate, for expenses properly incurred in the administration and protection of the trust and, to the extent necessary to prevent the trust's unjust enrichment, for others; an advance for the trust's protection carries a right to reimbursement with reasonable interest.

Article 8: Duties and powers of trustee

760 ILCS 3/801 ↗ Duty to administer trust: Upon acceptance of a trusteeship, the trustee administers the trust in good faith, in accordance with its purposes and the terms of the trust, and in accordance with the Code.
760 ILCS 3/802 ↗ Duty of loyalty: A sale, encumbrance or other transaction involving the investment or management of trust property that the trustee enters for the trustee's own account, or that is affected by a conflict between the trustee's fiduciary and personal interests, is voidable by an affected beneficiary and its profit disgorged unless the instrument or the law authorized it, the court or a nonjudicial settlement approved it, the limitation period ran, the beneficiary consented, ratified or released, or it predates the trusteeship; transactions with the trustee's spouse, descendants, siblings, parents or their spouses, or an enterprise in which the trustee has an interest, are presumed conflicted; the section permits fair dealings it lists and lets the court appoint a special fiduciary.
760 ILCS 3/803 ↗ Impartiality: Where a trust has two or more beneficiaries, the trustee acts impartially in investing, managing and distributing the trust property, giving due regard to the beneficiaries' respective interests and treating them equitably in light of the purposes and terms, including any manifestation of an intention to favor one or more.
760 ILCS 3/804 ↗ Prudent administration: A trustee administers the trust as a prudent person would, by considering the purposes, terms, distribution requirements and other circumstances of the trust, exercising reasonable care, skill and caution.
760 ILCS 3/805 ↗ Costs of administration: In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property and the purposes of the trust.
760 ILCS 3/807 ↗ Delegation by trustee: A trustee has a duty not to delegate acts involving the exercise of judgment and discretion, except duties and powers a prudent trustee of comparable skills could properly delegate, with reasonable care, skill and caution in selecting the agent, setting the scope and terms and periodically reviewing the agent's performance; the agent owes the trust reasonable care and submits to Illinois jurisdiction, and a trustee who complies is not liable for the agent's actions.
760 ILCS 3/808 ↗ Directed trusts: Illinois's own directed-trust rules: an investment trust advisor, a distribution trust advisor and a trust protector are directing parties — fiduciaries with a trustee's duties and standards — whose powers, exercised in their sole discretion, bind everyone; the excluded fiduciary acts in accordance with the instrument and complies with the direction, has no duty to monitor, review, inquire, investigate, recommend, evaluate or warn about the directing party's exercise or non-exercise, and is not liable for a loss from following a direction except for its own willful misconduct; a directing party keeps the excluded fiduciary informed, gives the qualified beneficiaries its own 90-day notices, and gives the Attorney General 60 days' notice before certain actions where a charitable interest exists.
760 ILCS 3/809 ↗ Control and protection of trust property: A trustee takes reasonable steps to take control of and protect the trust property, including searching for and, if practicable, claiming any unclaimed property; where a corporation serves as co-trustee with individuals, the corporate trustee has custody of the trust estate unless all the trustees agree otherwise (as amended by P.A. 104-116, in force January 1, 2026).
760 ILCS 3/810 ↗ Recordkeeping and identification of trust property: A trustee keeps adequate records of the administration, keeps trust property separate from the trustee's own, and — unless a regulated bank — has the property designated so that the trust's interest, to the extent feasible, appears in a third party's records; several trusts' property may be invested as a whole with clear records; a copy of the governing instrument in force at the termination is kept at least 7 years after the termination, and before the termination the trustee searches for trust property remitted to a state unclaimed-property administrator (as amended by P.A. 104-116, in force January 1, 2026).
760 ILCS 3/811 ↗ Enforcement and defense of claims: A trustee takes reasonable steps to enforce the trust's claims and to defend claims against it; it may be reasonable not to enforce or defend, to settle, or to suffer a default, depending on the likelihood of recovery and the cost.
760 ILCS 3/812 ↗ Powers and duties of successor; liability for acts of predecessor; approval of accounts: A successor trustee has all the rights, powers and duties granted to or imposed on the predecessor; a successor is under no duty to inquire into the predecessor's acts and is not liable for them; with the approval of a majority in interest of the income beneficiaries, a successor may accept the predecessor's account and the property received as a full discharge of the predecessor without liability.
760 ILCS 3/813.1 ↗ Duty to inform and account; trusts irrevocable and trustees accepting appointment after the effective date of the Code: For a trust that became irrevocable, or a trustee who accepted, after January 1, 2020 — and, subject to section 603, a revocable trust — the trustee notifies each qualified beneficiary of the trust's existence, of the right to request a complete copy of the instrument (or only the beneficiary's portions where the instrument so provides) and of whether the beneficiary has a right to receive or request trust accountings, within 90 days of the trust becoming irrevocable (or of the acceptance if no trustee was then acting) and within 90 days of learning of an unnotified representative, the end of a representation or a new qualified beneficiary; sends a trust accounting at least annually to all current beneficiaries and all presumptive remainder beneficiaries and, on termination, to the residue's takers; furnishes a complete copy promptly on a qualified beneficiary's reasonable request; and gives the other notices of subsection (d) — within 90 days after accepting, the acceptance and the trustee's name, address and telephone number; in advance, a change in compensation; the trustee's resignation; within 90 days, another trustee's departure and the trustee's own contact changes. A qualified beneficiary may waive and later withdraw the waiver in writing; receipt is presumed under reasonable mailing procedures; the trustee may ask the court to approve an accounting; and the section imposes no duty to inform in advance of transactions.
760 ILCS 3/813.2 ↗ Duty to inform and account for pre-2020 trusts: For a trust that became irrevocable, or a trustee who accepted, before January 1, 2020, the trustee furnishes at least annually a current account of the receipts, disbursements and inventory to the beneficiaries entitled to or receiving the income (or, if none, those eligible to it), and on termination a final account to the beneficiaries entitled to distribution, with prior accounts made available; an incapacitated beneficiary's account goes to the representative of the beneficiary's estate or, if none, a spouse, parent, adult child or guardian.
760 ILCS 3/814 ↗ Discretionary powers; tax savings: However broad the discretion the instrument grants — "absolute", "sole" or "uncontrolled" — a fiduciary exercises a discretionary power in good faith and in accordance with the terms and purposes of the instrument; unless the instrument expressly says otherwise, a beneficiary-trustee other than a settlor may make discretionary distributions for the trustee's own benefit only under an ascertainable standard and may not use them to satisfy the trustee's own support obligation, and a related or subordinate successor fiduciary appointed by a beneficiary is limited the same way; where every fiduciary is so limited, the court may appoint a special fiduciary.
760 ILCS 3/815 ↗ General powers of trustee: Without authorization by the court, a trustee may exercise the powers the instrument confers and, except as the instrument limits them, all powers over the trust property that an unmarried owner with legal capacity has over individually owned property, any other powers appropriate to the proper investment, management and distribution of the trust property, and the powers the Code confers — each subject to the fiduciary duties the Code prescribes.
760 ILCS 3/816 ↗ Specific powers of trustee: Lists thirty-eight specific powers beyond the general ones — among them to collect property and accept or reject additions, acquire or sell property at public or private sale, exchange or partition, deposit money, borrow and encumber, continue a business, exercise an owner's rights over securities, manage and improve real property, lease, insure, abandon worthless property, deal with environmental liability, settle claims, pay taxes and expenses, make tax elections, make loans to beneficiaries, appoint an ancillary trustee, distribute for an incapacitated beneficiary in the ways listed, divide in kind, resolve disputes, engage attorneys and agents, wind up on termination, and rely on affidavits and certificates reasonably believed genuine.
760 ILCS 3/817 ↗ Distribution upon termination: On an event terminating the trust in whole or in part, or a beneficiary's exercise of a right to withdraw principal, the trustee proceeds expeditiously to make the distribution; the trustee may require a written approval of the trust accounting and, at the trustee's election, a refunding agreement, and may withhold a reasonable amount or require a reasonable reserve for debts, expenses and taxes pending them or a judicial settlement of accounts; an approved accounting binds the approving beneficiary and successors.

Article 9: The Illinois Prudent Investor Law

760 ILCS 3/901 ↗ Prudent investor rule: A trustee administering a trust has a duty to invest and manage the trust assets under the prudent investor rule the Article sets — a default rule the express terms of the trust may expand, restrict, eliminate or otherwise alter, on which the trustee may rely in good faith.
760 ILCS 3/902 ↗ Standard of care; portfolio strategy; risk and return objectives: A trustee invests and manages trust assets as a prudent investor would, considering the purposes, terms, distribution requirements and other circumstances, with reasonable care, skill and caution, in the context of the portfolio as a whole and an overall strategy with suitable risk and return objectives, pursuing both reasonable income and safety of capital; the section lists the circumstances the trustee may consider.
760 ILCS 3/903 ↗ Diversification: A trustee has a duty to diversify the investments of the trust unless, under the circumstances, the trustee reasonably believes it is in the interests of the beneficiaries and furthers the purposes of the trust not to diversify.
760 ILCS 3/904 ↗ Duties at inception of trusteeship: Within a reasonable time after accepting a trusteeship, a trustee reviews the trust assets and makes and implements decisions about retaining or disposing of the original investments, to conform to the Article; a decision may properly be influenced by an asset's special relationship or value to the trust's purposes or the beneficiaries.
760 ILCS 3/908 ↗ Reviewing compliance: No specific investment course of action is, taken alone, prudent or imprudent; a trustee may invest in every kind of property subject to the Article, and investment decisions are judged by the trustee's reasonable business judgment about the anticipated effect on the portfolio as a whole in the circumstances prevailing at the time — a test of conduct, not of resulting performance.
760 ILCS 3/909 ↗ Delegation of investment and management functions: Before delegating any investment function to an agent under section 807(b), a trustee inquires into the agent's experience, performance history, professional licensing or registration, and financial stability.
760 ILCS 3/913 ↗ Life insurance: A trustee's duties about acquiring or retaining a life insurance contract on the settlor, the settlor and spouse, or an insured in whom the trustee has an insurable interest do not include determining whether the contract remains a proper investment, diversifying, investigating the insured's health or finances, preventing a lapse, or exercising policy options, and the trustee is not liable for loss from the absence of those duties; the section applies to a trust irrevocable after January 1, 2020 and to an older trust 90 days after the trustee's written notice to the settlor (or the current beneficiaries) unless they object in writing.

Article 10: Liability of trustees and rights of persons dealing with trustee

760 ILCS 3/1001 ↗ Remedies for breach of trust: A violation by a trustee of a duty owed to a beneficiary is a breach of trust; to remedy one that has occurred or may occur, the court may compel performance, enjoin a breach, compel redress, order an account, appoint a special fiduciary, suspend or remove the trustee, reduce or deny compensation, or, subject to section 1012, void an act, impose a lien or constructive trust, or trace the property — without limiting its other equitable powers.
760 ILCS 3/1002 ↗ Damages for breach of trust: A trustee who commits a breach of trust is liable to the affected beneficiaries for the greater of the amount required to restore the value of the trust property and distributions to what they would have been and the value of any benefit the trustee received; co-trustees share liability with the contribution rules the section states.
760 ILCS 3/1003 ↗ No damages in absence of breach: Except as section 802 provides, absent a breach of trust a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for any benefit received by reason of the administration.
760 ILCS 3/1004 ↗ Attorney's fees and costs: In a judicial proceeding involving the administration of a trust, the court, as equity may require, may award costs and expenses, including reasonable attorney's fees, to any party, to be paid by another party or from the trust.
760 ILCS 3/1005 ↗ Limitation on action against trustee: For a trust that became irrevocable, or a trustee who accepted, after January 1, 2020, a matter adequately disclosed in writing by a trust accounting or otherwise under section 813.1 or 1102 binds each person who receives the information, and those the person represents, unless an action is instituted within 2 years after it is furnished — adequate disclosure meaning enough information that the person knows of the potential claim or should have inquired; for the older category, a current or final account binds unless an action is instituted within 3 years; otherwise a proceeding is commenced within 5 years after the first of the trustee's removal, resignation or death, the end of the beneficiary's interest or the trust's termination, with fraudulent concealment governed by the Code of Civil Procedure's section 13-215.
760 ILCS 3/1008 ↗ Exculpation of trustee: A term relieving a trustee of liability for breach of trust is unenforceable to the extent it relieves liability for a breach committed in bad faith or with reckless indifference to the purposes of the trust or the beneficiaries' interests, or was inserted through the trustee's abuse of a fiduciary or confidential relationship with the settlor; an exculpatory term the trustee drafted is invalid unless the trustee proves it fair and adequately communicated, which the settlor's independent counsel satisfies.
760 ILCS 3/1009 ↗ Beneficiary's consent, release, or ratification: A trustee is not liable to a beneficiary who consented to the conduct, released the trustee or ratified the transaction, unless the consent was induced by the trustee's improper conduct or the beneficiary did not know of the beneficiary's rights or the material facts; a consent to a self-dealing transaction binds only if the transaction was fair and reasonable, which the beneficiary's independent counsel satisfies; no consideration is required.
760 ILCS 3/1010 ↗ Limitation on personal liability of trustee: A trustee is not personally liable on a contract properly entered in the fiduciary capacity if the contract disclosed that capacity, and is personally liable for a tort in the administration or an obligation from ownership or control of trust property, including environmental liability, only if personally at fault; such claims may be asserted against the trustee in the fiduciary capacity.
760 ILCS 3/1012 ↗ Protection of person dealing with trustee: A person other than a beneficiary who in good faith assists or deals for value with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers, is protected as if the powers were properly exercised and need not inquire into them; a person who in good faith delivers assets to a trustee need not ensure their proper application; the same protection reaches dealings with a former trustee without knowledge that the trusteeship ended.
760 ILCS 3/1013 ↗ Certification of trust: Instead of furnishing the trust instrument to a person other than a beneficiary, the trustee may furnish a certification of trust stating that the trust exists and the date the instrument was executed, the settlor, the currently acting trustee and address, the trustee's powers, revocability and amendability and who may revoke, the co-trustees' signing authority, the trust's taxpayer identification number and the manner of taking title; it is signed by one or more trustees, may be required to be acknowledged, states that the trust has not been revoked, modified or amended so as to make it incorrect, and need not contain the dispositive terms; a person relying on it in good faith is protected, excerpts may be required, and one who demands the instrument without good faith is liable for damages; subsection (j) prints a sample form.

Articles 11, 12 and 15: Total return trusts, the Trust Decanting Law and application

760 ILCS 3/1101 ↗ Total return trust defined; trustee duty to inform: A total return trust is a trust converted under Article 11 that the trustee manages and invests seeking a total return without regard to whether it is income or appreciation; a trustee has no duty to inform beneficiaries about the Article's availability or to review the trust for action under it unless a qualified beneficiary asks in writing.
760 ILCS 3/1102 ↗ Conversion by trustee: A trustee may convert a trust that measures distributions by its income to a total return trust where the trustee determines the conversion better carries out the trust's purposes and is in the beneficiaries' best interests, sends all qualified beneficiaries a written notice of the decision with a prospective effective date and a copy of the Article, and no qualified beneficiary objects in writing within 60 days after the notice is sent.
760 ILCS 3/1203 ↗ Scope (the Trust Decanting Law): The Trust Decanting Law applies to an express trust that is irrevocable, or revocable only with the consent of the trustee or an adverse party, other than a trust held solely for charitable purposes; the instrument may restrict or prohibit the decanting power, and the Article does not limit other powers to distribute in further trust or to modify a trust.
760 ILCS 3/1207 ↗ Notice (the Trust Decanting Law): An authorized fiduciary may exercise the decanting power without consent or court approval, but gives notice in a record of the intended exercise — the manner, the proposed effective date, the first-trust instrument and every second-trust instrument — not later than 60 days before the exercise to each living settlor, each qualified beneficiary, each holder of a presently exercisable power of appointment, each person who may remove or replace the fiduciary, every other fiduciary of the first trust, each fiduciary of the second trust and, where there is a charitable interest, the Attorney General's Charitable Trust Bureau; the notice period ends 59 days after notice is given unless everyone waives it in a signed record, and the Attorney General's written objection stops the exercise without court approval or later consent.
760 ILCS 3/1506 ↗ Application to existing relationships: The Code applies to all trusts created before, on or after January 1, 2020, to judicial proceedings commenced on or after that date and, unless the court finds substantial interference or prejudice, to those commenced before it, and to nonjudicial matters; its rules of construction apply to earlier instruments absent a contrary intent; an act done before the effective date is not affected, and a period that began under an earlier statute continues under it.

מידע כללי על חוק אילינוי, לא ייעוץ משפטי.

קוד הנאמנויות של אילינוי, סעיף אחר סעיף