On January 1, 2020, the new Illinois Trust Code (ITC) became effective. Illinois is the 34th state to adopt a version of the Uniform Trust Code (UTC), a comprehensive codification of the law on trusts to “provide States with precise, comprehensive, and easily accessible guidance on trust law questions.” The ITC has some provisions unique to Illinois. If you have not updated your estate plan recently, the new ITC is a good reason for a comprehensive review of your estate plan, particularly in regard to your trust beneficiaries.
The new trust code applies to all Illinois trusts and replaced the Illinois Trusts and Trustees Act. The ITC made several changes that impact trust beneficiaries:
1. A beneficiary can serve as the sole trustee of a trust.
2. A beneficiary of a trust can serve as the designated representative of other beneficiaries, including minors, unborn children, or beneficiaries who have not been located.
3. Trustees must provide annual accountings to all current beneficiaries.
4. Trustees must notify beneficiaries when there are changes in the circumstances of the trustee including their contact information and their compensation.
5. If all beneficiaries consent, a court may modify any noncharitable, irrevocable trust so long as the modification is not inconsistent with the material purposes of the trust.
With the new ITC, if you have a trust in Illinois you should review your estate plan and any existing revocable and irrevocable trusts with a qualified attorney to ensure that they conform to the new standards and continue to meet your estate goals and wishes.
If you are a trust beneficiary, or have a trust under Illinois law and have not updated it under the new Illinois Trust Code, please call our trust and estate planning attorneys at Estate and Planning Legal Group in Lombard Illinois to schedule your consultation, 630-800-0112.