Some people in Naperville choose to form a trust in lieu of writing a will. However, trusts could be administered while the maker is still living, or they may commence after someone’s unfortunate passing.
If you have been chosen to administer a trust as a trustee, or if you are lucky enough to have become a trust beneficiary, you might need legal advice. A competent Naperville trust administration lawyer may be able to answer your questions about your rights and obligations concerning the instrument.
Per the Illinois Compiled Statutes 760 ILCS 5/3, the creator of a trust, called the settlor, is authorized to specify the rights and liabilities for both the beneficiaries and the trustee, who administers the trust. A settlor may provide specific directions in the trust instrument that the trustee must follow, or they might allow some discretion.
The Principal and Income Act, which has been codified by 760 ILCS 15/1, provides guidelines for the administration of trusts. Although the settlor may include specific instructions for administration in the trust instrument, the Act also includes lawful discretionary choices for a trustee.
Generally, a trustee must invest the principal prudently and as a reasonable person would with their own funds. Although they may choose a few small, speculative investments, these could be balanced by diversifying with more stable monetary ventures.
A trustee might also use a portion of the principal to purchase real estate, either for investment purposes or as rental property income. An adept trust administration lawyer in Naperville may provide sound advice on the prudent investment of the principal to generate income for the beneficiaries.
A trustee is uniformly tasked with fiduciary duties of due care and loyalty to both the settlor and the beneficiaries. They may not engage in self-dealing, nor may they withdraw funds from the trust for their own private benefit. A trustee is also required to follow the directions of the settlor, if specific instructions have been provided.
If a beneficiary believes that a trustee is not properly fulfilling their mandated duties, they might consider speaking to an attorney about getting the trustee removed from their position. A seasoned trust administration lawyer in Naperville might be a helpful advocate on behalf of beneficiaries who are dissatisfied with the actions of the trustee.
If the terms of the trust instrument did not provide the beneficiaries with the power to remove a trustee, or at least require the trustee to provide an accounting of administration activities, the beneficiaries might seek the help of the court. With the help of a trust administration attorney in Naperville, beneficiaries may petition the court to either replace the trustee or order them to account for the principal and income.
Whether it is a living trust or one that is identified in a last will and testament, these instruments are subject to Naperville law. If you have been named as the trustee, you may feel overwhelmed by this new position, and you may have a variety of questions about your rights and duties.
If you stand to benefit from the administration of a trust, you may also want to make sure that terms of the trust are followed correctly and lawfully. Whether you are a trustee or a beneficiary, you might need legal advice from counsel. Make an appointment to speak with a Naperville trust administration lawyer today.