Chapter 760 — TRUSTS AND FIDUCIARIES

(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…

(760 ILCS 3/509) Sec. 509. Trust for beneficiary with a disability. (a) As used in this Section: (1) "Discretionary trust" means a trust in which the trustee has discretionary power to determine distributions to be made under the trust. (2) "Resources" includes, but is not limite…

(760 ILCS 3/601) Sec. 601. Capacity of settlor of revocable trust. The capacity required of the settlor to create, amend, revoke in whole or in part, or add property to a revocable trust is the same as that required to make a will. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/602) Sec. 602. Revocation or amendment of revocable trust. (a) The settlor may revoke a trust only if the trust instrument expressly provides that the trust is revocable or that the settlor has an unrestricted power of amendment. The settlor may amend a trust only if …

(760 ILCS 3/603) Sec. 603. Settlor's powers; powers of withdrawal. (a) To the extent a trust is revocable by a settlor, and the settlor personally has capacity to revoke the trust, a trustee may follow a direction of the settlor that is contrary to the terms of the trust. To the …

(760 ILCS 3/604) Sec. 604. Limitation on action contesting validity of revocable trust; distribution of trust property. (a) A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death only within the earlier of: (1) 2 y…

(760 ILCS 3/605) Sec. 605. Revocation of provisions in revocable trust by divorce or annulment. (a) As used in this Section: (1) "Judicial termination of marriage" includes, but is not limited to, divorce, dissolution, annulment or declaration of invalidity of marriage. (2) "Prov…

(760 ILCS 3/701) Sec. 701. Accepting or declining trusteeship. (a) Except as otherwise provided in subsection (c), a person designated as trustee accepts the trusteeship: (1) by substantially complying with a method of acceptance provided in the trust instrument; or (2) if the tr…

(760 ILCS 3/702) Sec. 702. Trustee's bond. (a) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispen…

(760 ILCS 3/703) Sec. 703. Co-trustees. (a) Co-trustees who are unable to reach a unanimous decision may act by majority decision after prior written notice to, or written waiver of notice by, each other co-trustee. (b) If a vacancy occurs in a co-trusteeship, subsection (b) of S…

(760 ILCS 3/704) Sec. 704. Vacancy in trusteeship; appointment of successor. (a) A vacancy in a trusteeship occurs if: (1) a person designated as trustee declines the trusteeship; (2) a person designated as trustee cannot be identified or does not exist; (3) a trustee resigns; (4…

(760 ILCS 3/705) Sec. 705. Resignation of trustee. (a) A trustee may resign: (1) upon notice to the settlor, if living, to the beneficiaries who are distributees or permissible distributees of trust income, and all co-trustees; or (2) with the approval of the court. (b) In approv…

(760 ILCS 3/706) Sec. 706. Removal of trustee. (a) A settlor, a co-trustee, or a qualified beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative. (b) The court may remove a trustee if: (1) the trustee has committed a…

(760 ILCS 3/707) Sec. 707. Delivery of property by former trustee. (a) Unless a co-trustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed …

(760 ILCS 3/708) Sec. 708. Compensation of trustee. (a) If the trust instrument does not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances. (b) If the trust instrument specifies the trustee's compensation, the tru…

(760 ILCS 3/709) Sec. 709. Reimbursement of expenses. (a) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for: (1) expenses that were properly incurred in the administration and protection of the trust; and (2) to the extent necessa…

(760 ILCS 3/801) Sec. 801. Duty to administer trust. Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its purposes and the terms of the trust, and in accordance with this Code. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/802) Sec. 802. Duty of loyalty. (a) Subject to the rights of persons dealing with or assisting the trustee as provided in Section 1012, a sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for t…

(760 ILCS 3/803) Sec. 803. Impartiality. If a trust has 2 or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property giving due regard to the beneficiaries respective interests. The trustee must treat the beneficiaries equ…

(760 ILCS 3/804) Sec. 804. Prudent administration. A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonab…

(760 ILCS 3/805) Sec. 805. Costs of administration. In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property and the purposes of the trust. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/806) Sec. 806. (Reserved). (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/807) Sec. 807. Delegation by trustee. (a) Except as provided in subsection (b), the trustee has a duty not to delegate to others the performance of any acts involving the exercise of judgment and discretion. (b) A trustee may delegate duties and powers that a prudent …

(760 ILCS 3/808) Sec. 808. Directed trusts. (a) In this Section: (1) "Distribution trust advisor" means any one or more persons given authority by the trust instrument to direct, consent to, veto, or otherwise exercise all or any portion of the distribution powers and discretions…

(760 ILCS 3/809) Sec. 809. Control and protection of trust property. A trustee shall take reasonable steps to take control of and protect the trust property, including searching for and, if practicable, claiming any unclaimed property. If a corporation is acting as co-trustee wit…

(760 ILCS 3/810) Sec. 810. Recordkeeping and identification of trust property. (a) A trustee shall keep adequate records of the administration of the trust. (b) A trustee shall keep trust property separate from the trustee's own property. (c) Except as otherwise provided in subse…

(760 ILCS 3/811) Sec. 811. Enforcement and defense of claims. A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. It may be reasonable for a trustee not to enforce a claim, not to defend an action, to settle an action, or t…

(760 ILCS 3/812) Sec. 812. Powers and duties of successor; liability for acts of predecessor; approval of accounts. (a) A successor trustee shall have all the rights, powers, and duties that are granted to or imposed on the predecessor trustee. (b) A successor trustee is under no…

(760 ILCS 3/813.1) Sec. 813.1. Duty to inform and account; trusts irrevocable and trustees accepting appointment after effective date of Code. (a) This Section applies to all trusts created under a trust instrument that became irrevocable after the effective date of this Code and…

(760 ILCS 3/813.2) Sec. 813.2. Duty to inform and account for pre-2020 trusts. (a) This Section applies to all trusts created under a trust instrument that became irrevocable before the effective date of this Code and to a trustee of a revocable trust who accepted the trustee's t…

(760 ILCS 3/814) Sec. 814. Discretionary powers; tax savings. (a) Notwithstanding the breadth of discretion granted to a trustee or other fiduciary in the trust instrument, including the use of such terms as "absolute", "sole", or "uncontrolled", such fiduciary shall exercise a d…

(760 ILCS 3/815) Sec. 815. General powers of trustee. (a) A trustee, without authorization by the court, may exercise: (1) powers conferred by the trust instrument; or (2) except as limited by the trust instrument: (A) all powers over the trust property that an unmarried owner wi…

(760 ILCS 3/816) Sec. 816. Specific powers of trustee. Without limiting the authority conferred by Section 815, a trustee may: (1) collect trust property and accept or reject additions to the trust property from a settlor or any other person; (2) acquire or sell property, for cas…

(760 ILCS 3/817) Sec. 817. Distribution upon termination. Upon the occurrence of an event terminating a trust in whole or in part, or upon the exercise by a beneficiary of a right to withdraw trust principal, the trustee shall proceed expeditiously to make the distribution to the…

(760 ILCS 3/818) Sec. 818. (Reserved). (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/819) Sec. 819. Nominee registration. The trustee may cause stocks, bonds, and other real or personal property belonging to the trust to be registered and held in the name of a nominee without mention of the trust in any instrument or record constituting or evidencing …

(760 ILCS 3/820) Sec. 820. Proceeds of eminent domain or partition. If a trustee is appointed by a court of this State to receive money under eminent domain or partition proceedings and to invest it for the benefit of the person who would be entitled to the real estate or its inc…

(760 ILCS 3/821) Sec. 821. Lands or estates subject to future interest or power of appointment; waste; appointment of trustee. If lands or any estate therein are subject to any legal or equitable future interest of any kind or to any power of appointment, whether a trust is invol…

(760 ILCS 3/900) Sec. 900. Article title. This Article may be referred to as the Illinois Prudent Investor Law. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/901) Sec. 901. Prudent investor rule. (a) Except as otherwise provided in subsection (b), a trustee administering a trust has a duty to invest and manage the trust assets to comply with the prudent investor rule set forth in this Article. (b) The prudent investor rule…

(760 ILCS 3/902) Sec. 902. Standard of care; portfolio strategy; risk and return objectives. (a) A trustee has a duty to invest and manage trust assets as a prudent investor would, considering the purposes, terms, distribution requirements, and other circumstances of the trust. T…

(760 ILCS 3/903) Sec. 903. Diversification. A trustee has a duty to diversify the investments of the trust unless, under the circumstances, the trustee reasonably believes it is in the interests of the beneficiaries and furthers the purposes of the trust not to diversify. (Source…