Chapter 760 — TRUSTS AND FIDUCIARIES

(760 ILCS 3/1001) Sec. 1001. Remedies for breach of trust. (a) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. (b) To remedy a breach of trust that has occurred or may occur, the court may: (1) compel the trustee to perform the trustee's…

(760 ILCS 3/1002) Sec. 1002. Damages for breach of trust. (a) A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of: (1) the amount required to restore the value of the trust property and trust distributions to what they would have bee…

(760 ILCS 3/1003) Sec. 1003. No damages in absence of breach. Except as provided in Section 802, 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 the trustee by reason of th…

(760 ILCS 3/1004) Sec. 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 tr…

(760 ILCS 3/1005) Sec. 1005. Limitation on action against trustee. (a) A beneficiary may not commence a proceeding against a trustee for breach of trust for any matter disclosed in writing by a trust accounting, or otherwise as provided in Sections 813.1, 813.2, and 1102, after t…

(760 ILCS 3/1006) Sec. 1006. Reliance on trust instrument. A trustee who acts in reasonable reliance on the express language of the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance. (Source: P.A. 101-48, eff…

(760 ILCS 3/1007) Sec. 1007. Event affecting administration or distribution. If the happening of an event, including, but not limited to, marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has…

(760 ILCS 3/1008) Sec. 1008. Exculpation of trustee. (a) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference t…

(760 ILCS 3/1009) Sec. 1009. Beneficiary's consent, release, or ratification. (a) A trustee is not liable to a beneficiary, or to anyone claiming by or through the beneficiary, for breach of trust if the beneficiary consented to the conduct constituting the breach, released the t…

(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 3/1010) Sec. 1010. Limitation on personal liability of trustee. (a) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the t…

(760 ILCS 3/1011) Sec. 1011. Interest as general partner. (a) Except as otherwise provided in subsection (c) or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable …

(760 ILCS 3/1012) Sec. 1012. Protection of person dealing with trustee. (a) A person other than a beneficiary or a beneficiary's representative under Article 3 acting in a representative capacity who in good faith assists a trustee, or who in good faith and for value deals with a…

(760 ILCS 3/1013) Sec. 1013. Certification of trust. (a) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information: (1) a statement that the trust …

(760 ILCS 3/1014) Sec. 1014. Reliance on Secretary of Financial and Professional Regulation. No trustee or other person is liable under this Code for any act done or omitted in good faith in conformity with any rule, interpretation, or opinion issued by the Secretary of Financial…

(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 3/1101) Sec. 1101. Total return trust defined; trustee duty to inform. (a) In this Article, "total return trust" means a trust converted in accordance with this Article that the trustee shall manage and invest seeking a total return without regard to whether the return …

(760 ILCS 3/1102) Sec. 1102. Conversion by trustee. A trustee may convert a trust to a total return trust as described in this Article if all of the following apply: (1) The trust describes the amount that may or must be distributed to a beneficiary by referring to the trust's in…

(760 ILCS 3/1103) Sec. 1103. Conversion by agreement. Conversion to a total return trust may be made by agreement between a trustee and all qualified beneficiaries. The agreement may include any actions a court could properly order under Section 1104; however, any distribution pe…

(760 ILCS 3/1104) Sec. 1104. Conversion or reconversion by court. (a) The trustee may for any reason elect to petition the court to order conversion to a total return trust, including without limitation the reason that conversion under Section 1102 is unavailable because a benefi…

(760 ILCS 3/1105) Sec. 1105. Post conversion. While a trust is a total return trust, all of the following apply to the trust: (1) the trustee shall make income distributions in accordance with the trust instrument subject to this Article; (2) the term "income" in the trust instru…

(760 ILCS 3/1106) Sec. 1106. Administration. (a) As used in this Section, "excluded asset" means an asset for which there is no readily available market value and that the trustee determines in accordance with subsection (d) shall be excluded from the net fair market value of the…

(760 ILCS 3/1107) Sec. 1107. Allocations. (a) Expenses, taxes, and other charges that would be deducted from income if the trust were not a total return trust shall not be deducted from the distribution amount. (b) Unless otherwise provided by the trust instrument, the trustee sh…

(760 ILCS 3/1108) Sec. 1108. Restrictions. Conversion to a total return trust does not affect any provision in the trust instrument: (1) directing or authorizing the trustee to distribute principal; (2) directing or authorizing the trustee to distribute a fixed annuity or a fixed…

(760 ILCS 3/1109) Sec. 1109. Tax limitations. (a) If a particular trustee is a beneficiary of the trust and conversion or failure to convert would enhance or diminish the beneficial interest of the trustee, or if possession or exercise of the conversion power by a particular trus…

(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 3/1110) Sec. 1110. Releases. A trustee may irrevocably release the power granted by this Article if the trustee reasonably believes the release is in the best interests of the trust and its beneficiaries. The release may be personal to the releasing trustee or may apply…

(760 ILCS 3/1111) Sec. 1111. Remedies. A trustee who reasonably and in good faith takes any action under this Article is not liable to any interested person. If a trustee reasonably and in good faith takes any action under this Article and an interested person opposes the action,…

(760 ILCS 3/1112) Sec. 1112. Application. This Article is available to trusts in existence on or after August 22, 2002. This Article shall be construed as pertaining to the administration of a trust and shall be available to any trust that is administered in Illinois or that is g…

(760 ILCS 3/1113) Sec. 1113. Application to express trusts. (a) In this Section: (1) "Unitrust" means a trust the terms of which require distribution of a unitrust amount, without regard to whether the trust has been converted to a total return trust in accordance with this Artic…

(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 3/1201) Sec. 1201. Article title. This Article may be referred to as the Trust Decanting Law. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1202) Sec. 1202. Definitions. In this Article: (1) (Blank). (2) "Authorized fiduciary" means: (A) a trustee or other fiduciary, other than a settlor, that has discretion to distribute or direct a trustee to distribute part or all of the principal of the first trust to…

(760 ILCS 3/1203) Sec. 1203. Scope. (a) Except as otherwise provided in subsections (b) and (c), this Article applies to an express trust that is irrevocable or revocable by the settlor only with the consent of the trustee or a person holding an adverse interest. (b) This Article…

(760 ILCS 3/1204) Sec. 1204. Fiduciary duty. (a) In exercising the decanting power, an authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to act in accordance with the purposes of the first trust. (b) This Article does not create or imply a…

(760 ILCS 3/1205) Sec. 1205. Application; governing law. This Article applies to a trust created before, on, or after the effective date of this Code that: (1) has its principal place of administration in this State, including a trust whose principal place of administration has b…

(760 ILCS 3/1206) Sec. 1206. Reasonable reliance. A trustee or other person that reasonably relies on the validity of a distribution of part or all of the property of a trust to another trust, or a modification of a trust, under this Article, law of this State other than this Art…

(760 ILCS 3/1207) Sec. 1207. Notice. (a) In this Section, a notice period begins on the day notice is given under subsection (c) and ends 59 days after the day notice is given. (b) Except as otherwise provided in this Article, an authorized fiduciary may exercise the decanting po…

(760 ILCS 3/1208) Sec. 1208. (Reserved). (Source: P.A. 101-48, eff. 1-1-20.)