Chapter 760, TRUSTS AND FIDUCIARIES

(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 3/807) 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 3/819) 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…

(760 ILCS 3/904) Sec. 904. Duties at inception of trusteeship. A trustee has a duty, within a reasonable time after the acceptance of a trusteeship, to review trust assets and to make and implement decisions concerning the retention and disposition of original preexisting investm…

(760 ILCS 3/905) Sec. 905. Court action. Nothing in this Article abrogates or restricts the power of an appropriate court in proper cases to: (i) direct or permit the trustee to deviate from the terms of the trust; or (ii) to direct or permit the trustee to take, or to restrain t…

(760 ILCS 3/908) Sec. 908. Reviewing compliance. No specific investment course of action is, taken alone, prudent or imprudent. The trustee may invest in every kind of property and type of investment, subject to this Article. A trustee's investment decisions and actions are to be…

(760 ILCS 3/909) Sec. 909. Delegation of investment and management functions. Notwithstanding any other provision of this Code, before delegating any investment functions to an agent in accordance with subsection (b) of Section 807, a trustee shall conduct an inquiry into the exp…

(760 ILCS 3/910) Sec. 910. Language invoking standard of Article. The following terms or comparable language in the investment powers and related provisions of a trust instrument, unless otherwise limited or modified by that instrument, shall be construed as authorizing any inves…

(760 ILCS 3/911) Sec. 911. (See Section 900 for short title.) (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/912) Sec. 912. Application to existing trusts. The Sections of this Article that precede this Section apply to all existing and future trusts, but only as to actions or inactions occurring on or after January 1, 1992. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/913) Sec. 913. Life insurance. (a) Notwithstanding any other provision, the duties of a trustee with respect to acquiring or retaining as a trust asset a contract of insurance upon the life of the settlor, upon the lives of the settlor and the settlor's spouse, or upo…

(760 ILCS 3/914) Sec. 914. Investments in affiliated investments; transactions with affiliates. (a) As used in this Section: (1) "Affiliate" means any corporation or other entity that directly or indirectly is controlled by a financial institution acting in a fiduciary capacity, …

(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…