Chapter 760, TRUSTS AND FIDUCIARIES

(760 ILCS 3/101) Sec. 101. Short title. This Act may be cited as the Illinois Trust Code. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/102) Sec. 102. Scope. Except as otherwise provided, this Code applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust. This Code …

(760 ILCS 3/103) Sec. 103. Definitions. In this Code: (1) "Action", with respect to an act of a trustee, includes a failure to act. (1.5) "Appointive property" means the property or property interest subject to a power of appointment. (2) "Ascertainable standard" means a standard…

(760 ILCS 3/104) Sec. 104. Knowledge. (a) Except as provided in subsection (b), a person has knowledge of a fact if the person: (1) has actual knowledge of it; (2) has received a notice or notification of it; or (3) from all the facts and circumstances known to the person at the …

(760 ILCS 3/105) Sec. 105. Default and mandatory rules. (a) The trust instrument may specify the rights, powers, duties, limitations, and immunities applicable to the trustee, beneficiary, and others and those terms, if not otherwise contrary to law, shall control, except to the …

(760 ILCS 3/106) Sec. 106. Common law of trusts; principles of equity. The common law of trusts and principles of equity supplement this Code, except to the extent modified by this Code or another statute of this State. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/107) Sec. 107. Governing law. (a) The meaning and effect of a trust instrument are determined by: (1) the law of the jurisdiction designated in the trust instrument; or (2) in the absence of a designation in the trust instrument, the law of the jurisdiction having the…

(760 ILCS 3/108) Sec. 108. Principal place of administration. (a) Without precluding other means for establishing a sufficient connection with the designated jurisdiction, the terms of a trust designating the principal place of administration are valid and controlling if: (1) a t…

(760 ILCS 3/109) Sec. 109. Methods and waiver of notice. (a) Notice to a person under this Code or the sending of a document to a person under this Code must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or d…

(760 ILCS 3/110) Sec. 110. Others treated as qualified beneficiaries. (a) A person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in Section 408 or 409 has the rights of a qualified beneficiary under this Code. (b) The …

(760 ILCS 3/111) Sec. 111. Nonjudicial settlement agreements. (a) Interested persons, or their respective representatives determined after giving effect to Article 3, may enter into a binding nonjudicial settlement agreement with respect to any matter listed in subsection (b). (b…

(760 ILCS 3/112) Sec. 112. Rules of construction. The rules of construction that apply in this State to the interpretation of wills and the disposition of property by will also apply as appropriate to the interpretation of the trust instrument and the disposition of the trust pro…

(760 ILCS 3/113) Sec. 113. Insurable interest of trustee. (a) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee of the trust acting in a fiduciary capacity or that designates the trust it…

(760 ILCS 3/114) Sec. 114. Gift to a deceased beneficiary under an inter vivos trust. (a) If a gift of a present or future interest is to a descendant of the settlor who dies before or after the settlor, the descendants of the deceased beneficiary living when the gift is to take …

(760 ILCS 3/115) Sec. 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. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/201) Sec. 201. Role of court in administration of trusts. (a) The court may adjudicate any matter arising in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law. (b) A trust is not subject to continuing…

(760 ILCS 3/202) Sec. 202. Jurisdiction over trustee and beneficiary. (a) By accepting the trusteeship of a trust having its principal place of administration in this State or by moving the principal place of administration to this State, the trustee is subject to the jurisdictio…

(760 ILCS 3/204) Sec. 204. Venue. (a) Except as otherwise provided in subsection (b), venue for a judicial proceeding involving a trust is in the county of this State in which the trust's principal place of administration is or will be located and, if the trust is created by will…

(760 ILCS 3/301) Sec. 301. Representation: basic effect. (a) Except as provided in Section 602 and subsection (c): (1) Notice, information, accountings, or reports given to a person who may represent and bind another person under this Article have the same effect as if given dire…

(760 ILCS 3/302) Sec. 302. Representation by holders of certain powers. (a) The holder of a testamentary or a presently exercisable power of appointment that is: (1) a general power of appointment; or (2) exercisable in favor of all persons other than the powerholder, the powerho…

(760 ILCS 3/303) Sec. 303. Representation by others. (a) If all qualified beneficiaries of a trust either have legal capacity or have representatives under this Article who have legal capacity, an action taken by all qualified beneficiaries, in each case either by the beneficiary…

(760 ILCS 3/304) Sec. 304. Representation by person having substantially identical interest. (a) To the extent there is no material conflict of interest between the representative and the represented beneficiary with respect to the particular question or dispute, a beneficiary wh…

(760 ILCS 3/305) Sec. 305. Appointment of representative. (a) If the court determines that representation of an incapacitated, unborn, or unascertainable beneficiary might otherwise be inadequate, the court may appoint a representative for any nonjudicial matter to receive any no…

(760 ILCS 3/306) Sec. 306. Representation of charity. If a trust contains a charitable interest, the Attorney General may, in accordance with this Section, represent, bind, and act on behalf of the charitable interest with respect to any particular question or dispute, including …

(760 ILCS 3/307) Sec. 307. Designated representative. (a) If specifically nominated in the trust instrument, one or more individuals with legal capacity may be designated to represent and bind an individual who is a qualified beneficiary. The trust instrument may also authorize a…

(760 ILCS 3/401) Sec. 401. Methods of creating trust. A trust may be created by: (1) transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death; (2) declaration by the owner of property th…

(760 ILCS 3/402) Sec. 402. Requirements for creation. (a) A trust is created only if: (1) the settlor or other person creating the trust has capacity to create a trust; (2) the settlor or other person creating the trust indicates an intention to create the trust; (3) the trust ha…

(760 ILCS 3/403) Sec. 403. Trusts created in other jurisdictions. A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation:…

(760 ILCS 3/404) Sec. 404. Trust purposes. A trust may be created only to the extent its purposes are lawful and not contrary to public policy. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/405) Sec. 405. Charitable purposes; enforcement. (a) A charitable trust may be created for any charitable purpose. (b) If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary and do not delegate to the trustee or others willin…

(760 ILCS 3/406) Sec. 406. Creation of trust induced by fraud, duress, or undue influence. If the creation, amendment, or restatement of a trust is procured by fraud, duress, mistake, or undue influence, the trust or any part so procured is void. The remainder of the trust not pr…

(760 ILCS 3/407) Sec. 407. Evidence of oral trust. Except as required by a statute other than this Code, 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. (Source: P.A. 10…

(760 ILCS 3/408) Sec. 408. Trusts for domestic or pet animals. (a) A trust for the care of one or more designated domestic or pet animals is valid. The trust terminates when no living animal is covered by the trust. A trust instrument shall be liberally construed to bring the tra…

(760 ILCS 3/409) Sec. 409. Noncharitable trust without ascertainable beneficiary. (a) Except as otherwise provided in Section 408 or by another statute, a trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a nonchari…

(760 ILCS 3/410) Sec. 410. Modification or termination of trust; proceedings for approval or disapproval. (a) In addition to the methods of termination prescribed by Sections 411 through 414, a trust terminates to the extent the trust is revoked or expires pursuant to the trust i…

(760 ILCS 3/411) Sec. 411. Modification or termination of noncharitable irrevocable trust by consent. (a) A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve …

(760 ILCS 3/412) Sec. 412. Modification or termination because of unanticipated circumstances or inability to administer trust effectively. (a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipa…

(760 ILCS 3/413) Sec. 413. Cy pres. (a) Except as otherwise provided in subsection (b), if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful: (1) the trust does not fail, in whole or in part; (2) the trust property does not revert…

(760 ILCS 3/414) Sec. 414. Modification or termination of uneconomic trust. (a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $100,000 may terminate the trust if the trustee concludes that the costs…

(760 ILCS 3/415) Sec. 415. Reformation to correct mistakes. The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence what the settlor's intention was and that the terms of the …

(760 ILCS 3/416) Sec. 416. Modification to achieve settlor's objectives. To achieve the settlor's tax objectives or objective to qualify for government benefits, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The co…

(760 ILCS 3/417) Sec. 417. Combination and division of trusts. (a) Subject to subsections (b), (c), and (d), after notice to the qualified beneficiaries, a trustee may: (1) consolidate 2 or more trusts having substantially similar terms into a single trust; (2) sever any trust es…

(760 ILCS 3/501) Sec. 501. Rights of beneficiary's creditor or assignee. Except as provided in Section 504, to the extent a beneficiary's interest is not subject to a spendthrift provision, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary…

(760 ILCS 3/502) Sec. 502. Spendthrift provision. (a) A spendthrift provision is valid only if it prohibits both voluntary and involuntary transfer of a beneficiary's interest. (b) A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift tr…

(760 ILCS 3/503) Sec. 503. Exceptions to spendthrift provision. (a) In this Section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state. (b) A spendthrift provision is unenforceable against: (1) a beneficiary's ch…

(760 ILCS 3/504) Sec. 504. Discretionary distributions; effect of standard. (a) As used in this Section, "discretionary distribution" means a distribution that is subject to the trustee's discretion regardless of whether the discretion is expressed in the form of a standard of di…

(760 ILCS 3/505) Sec. 505. Creditor's claim against settlor. (a) Whether or not the terms of a trust contain a spendthrift provision, the following rules apply: (1) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's credito…

(760 ILCS 3/506) Sec. 506. Overdue distribution. (a) In this Section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a beneficiary under the trust instrument, including a distribution upon termination of the trust. The…

(760 ILCS 3/507) Sec. 507. Personal obligations of trustee. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/508) Sec. 508. Lapse of power to withdraw. A beneficiary of a trust may not be considered to be a settlor or to have made a transfer to the trust merely because of a lapse, release, or waiver of his or her power of withdrawal to the extent that the value of the affect…