When beneficiaries disagree: Illinois's options

Settling by agreement

760 ILCS 3/111 provides that interested persons may enter into a binding nonjudicial settlement agreement on the matters it lists — among them the interpretation or construction of the terms, approval of an accounting, directing a trustee, a trustee's resignation, appointment and compensation, transfer of the place of administration, and bona fide disputes — to the extent the agreement does not violate a material purpose and includes terms the court could approve; termination of the trust needs the court's approval. Where the trust has a charitable interest, the Attorney General receives 60 days' written notice; any interested person may ask the court to approve within 60 days after the effective date.

The circuit court

A trust is not subject to continuing judicial supervision unless the court orders it, and a proceeding may concern any matter of the administration, including a request for instructions (760 ILCS 3/201). The settlor, a co-trustee or a qualified beneficiary may ask the court to remove a trustee — for a serious breach of trust, lack of cooperation among co-trustees that substantially impairs the administration, unfitness or persistent failure to administer effectively, or a substantial change of circumstances where removal best serves the beneficiaries (760 ILCS 3/706).

Remedies, fees and the time limits

To remedy a breach of trust the court may, among other things, compel performance, order an account, suspend or remove the trustee, or reduce or deny compensation (760 ILCS 3/1001). A beneficiary's proceeding about a matter adequately disclosed in a trust accounting or other writing is brought within 2 years after it was furnished, and otherwise within the periods of 760 ILCS 3/1005. In a 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 3/1004).

The statutes, verbatim

• Remedies for breach of trust

  760 ILCS 3/1001 ↗

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

• Limitation on action against trustee

  760 ILCS 3/1005 ↗

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

• Nonjudicial settlement agreements

  760 ILCS 3/111 ↗

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

• Removal of trustee

  760 ILCS 3/706 ↗

  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 Illinois beneficiaries resolve a dispute without court?

Yes, by a nonjudicial settlement agreement among the interested persons on the matters 760 ILCS 3/111 lists; termination of the trust needs the court's approval.

Can Illinois beneficiaries remove a trustee?

A qualified beneficiary may ask the circuit court to remove a trustee on the grounds 760 ILCS 3/706 lists.

How long does an Illinois beneficiary have to bring a claim?

2 years after a trust accounting or other writing adequately disclosed the matter (3 years after a current or final account under the older rules); otherwise the periods of 760 ILCS 3/1005.

General information about Illinois law, not legal advice.