Hiring help: delegation, agents and directing parties in Illinois

Delegating with care

760 ILCS 3/807 provides that a trustee may delegate duties and powers a prudent trustee of comparable skills could properly delegate under the circumstances, exercising reasonable care, skill and caution in selecting the agent, establishing the scope and terms of the delegation, and periodically reviewing the agent's actions. The agent owes the trust a duty of reasonable care, and a trustee who complies is not liable for the agent's actions. Before delegating an investment function, the trustee inquires into the agent's experience, performance history, professional licensing or registration, and financial stability (760 ILCS 3/909).

Engaging professionals

Among a trustee's specific powers are engaging attorneys, accountants, investment advisors, appraisers and other agents, and paying their reasonable compensation (760 ILCS 3/816). Expenses properly incurred are reimbursed from the trust (760 ILCS 3/709).

Directing parties

Where the instrument gives an investment trust advisor, a distribution trust advisor or a trust protector a power to direct, 760 ILCS 3/808 provides that the directing party is a fiduciary with a trustee's duties, that the excluded fiduciary acts in accordance with the direction and has no duty to monitor, review, inquire, investigate, recommend, evaluate or warn about it, and that the excluded fiduciary is not liable for a loss from following the direction except for its own willful misconduct. The instrument says who holds which power.

The statutes, verbatim

• Delegation by trustee

  760 ILCS 3/807 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Directed trusts

  760 ILCS 3/808 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Specific powers of trustee

  760 ILCS 3/816 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Delegation of investment and management functions

  760 ILCS 3/909 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

Common questions

Frequently asked questions

Can an Illinois trustee hire an investment advisor?

Yes. A trustee may delegate duties and powers a prudent trustee could properly delegate, with reasonable care in selecting, instructing and reviewing the agent (760 ILCS 3/807), after inquiring into the agent's experience, licensing and financial stability (760 ILCS 3/909).

Is an Illinois trustee liable for following a directing party?

An excluded fiduciary that follows a directing party's direction is not liable for a loss from doing so, except for the excluded fiduciary's own willful misconduct (760 ILCS 3/808(f)).

Can an Illinois trustee pay a lawyer from the trust?

Engaging attorneys and paying their reasonable compensation is among a trustee's specific powers (760 ILCS 3/816), and expenses properly incurred are reimbursed (760 ILCS 3/709).

General information about Illinois law, not legal advice.