Chapter 760, TRUSTS AND FIDUCIARIES

(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 3/1010) 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 3/1101) 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 3/1110) 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 3/1201) 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 3/1209) Sec. 1209. Court involvement. (a) On application of an authorized fiduciary, a person entitled to notice under Section 1207(c), a beneficiary, or, with respect to a charitable interest, the Attorney General or any other person that has standing to enforce the ch…

(760 ILCS 3/1210) Sec. 1210. Formalities. An exercise of the decanting power must be made in a record signed by an authorized fiduciary. The signed record must, directly or by reference to the notice required by Section 1207, identify the first trust and the second trust or trust…

(760 ILCS 3/1211) Sec. 1211. Decanting power under expanded distributive discretion. (a) In this Section: (1) "Noncontingent" right means a right that is not subject to the exercise of discretion or the occurrence of a specified event that is not certain to occur. The term does n…

(760 ILCS 3/1212) Sec. 1212. Decanting power under limited distributive discretion. (a) In this Section, "limited distributive discretion" means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard. (b) An authorized…

(760 ILCS 3/1213) Sec. 1213. Trust for beneficiary with disability. (a) In this Section: (1) "Beneficiary with a disability" means a beneficiary of the first trust who the special-needs fiduciary believes may qualify for governmental benefits based on disability, whether or not t…

(760 ILCS 3/1214) Sec. 1214. Protection of charitable interests. (a) In this Section: (1) "Determinable charitable interest" means a charitable interest that is a right to a mandatory distribution currently, periodically, on the occurrence of a specified event, or after the passa…

(760 ILCS 3/1215) Sec. 1215. Trust limitation on decanting. (a) An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of: (1) the decanting power; or (2) a power granted by state law to the fiduciary to …

(760 ILCS 3/1216) Sec. 1216. Change in compensation. (a) If a first-trust instrument specifies an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation beyond the specified compensation unless: (1) all qua…

(760 ILCS 3/1217) Sec. 1217. Relief from liability and indemnification. (a) Except as otherwise provided in this Section, a second-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument. (b) …

(760 ILCS 3/1218) Sec. 1218. Removal or replacement of authorized fiduciary. An authorized fiduciary may not exercise the decanting power to modify a provision in the first-trust instrument granting another person power to remove or replace the fiduciary unless: (1) the person ho…

(760 ILCS 3/1219) Sec. 1219. Tax-related limitations. (a) In this Section: (1) "Grantor trust" means a trust as to which a settlor of a first trust is considered the owner under Sections 671 through 677 of the Internal Revenue Code or Section 679 of the Internal Revenue Code. (2)…

(760 ILCS 3/1220) Sec. 1220. Duration of second trust. (a) Subject to subsection (b), a second trust may have a duration that is the same as or different from the duration of the first trust. (b) To the extent that property of a second trust is attributable to property of the fir…

(760 ILCS 3/1221) Sec. 1221. Need to distribute not required. An authorized fiduciary may exercise the decanting power whether or not under the first trust's discretionary distribution standard the fiduciary would have made or could have been compelled to make a discretionary dis…

(760 ILCS 3/1222) Sec. 1222. Savings provision. (a) If exercise of the decanting power would be effective under this Article except that the second-trust instrument in part does not comply with this Article, the exercise of the power is effective and the following rules apply to …

(760 ILCS 3/1223) Sec. 1223. Trust for care of animal. (a) In this Section: (1) "Animal trust" means a trust or an interest in a trust created to provide for the care of one or more designated domestic or pet animals. (2) "Protector" means a person described in paragraph (3) of s…

(760 ILCS 3/1225) Sec. 1225. Settlor. (a) For purposes of the laws of this State other than this Article and subject to subsection (b), a settlor of a first trust is deemed to be the settlor of the second trust with respect to the portion of the principal of the first trust subje…

(760 ILCS 3/1226) Sec. 1226. Later-discovered property. (a) Except as otherwise provided in subsection (c), if exercise of the decanting power was intended to distribute all the principal of the first trust to one or more second trusts, later-discovered property otherwise belongi…

(760 ILCS 3/1227) Sec. 1227. Obligations. A debt, liability, or other obligation enforceable against property of a first trust is enforceable to the same extent against that property when held by the second trust after exercise of the decanting power. (Source: P.A. 101-48, eff. 1…