Illinois adopted the Prudent Investor Rule to require trustees to invest and manage trust assets as if they were their own property and to avoid excessive risk. In 2020, the Illinois Trust Code (760 ILCS 3/) was amended to add provisions requiring the trustee to act in the best interests of the trust and the beneficiaries:
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. This standard requires the exercise of reasonable care, skill, and caution and applies not in isolation, but in the context of the trust portfolio as a whole and as a part of an overall investment strategy that incorporates risk and return objectives reasonably suitable to the trust.
What If A Trustee Takes Unreasonable Risks?
A trustee manages the assets of the trust, and may receive compensation for their services. The trustee is supposed to manage the assets in the trust with the good of the beneficiaries in mind. This is known as a fiduciary duty. Illinois adopted the Uniform Trust Code (UTC) under the Illinois Trust Code (ITC) as a guide for trust issues to be sure that beneficiaries, trustees and other interested parties are protected if there is a dispute.
When accusations of stealing, wrongful duty, negligence, fraud or other charges are made against a trustee, an experienced trust and estate litigation attorney can help you investigate the charges, negotiate a settlement or litigate the case in court. Even if the trustee was personally selected by the deceased to manage the trust assets, the trustee has the responsibility to make financially sound decisions on behalf of the trust and the trust beneficiaries.
Learn More: How to Remove a Trustee in Illinois
If you believe the trustee of a trust that you have an interest in is not acting in the best interests of the beneficiaries, it may be wise to consult an experienced trusts attorney to find out how to protect your rights and your interests. To schedule a consultation with the Estate and Probate Legal Group, call us at 630-864-5835.
AREAS WE SERVE: Cook, DuPage, Kane, Lake, and Will counties