summary
Introduced
02/04/2026
02/04/2026
In Committee
02/10/2026
02/10/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Article in the Illinois Trust Code governing the duties and powers of trustees to provide a procedure for settlement of accounts. Provides that a trustee may obtain a settlement of its accounts if a trust terminates under the terms of the trust, a trust terminates early, a trustee resigns or is removed, or a trustee seeks discharge of an interim accounting period if the interest of one or more beneficiaries has terminated and the trust is continuing. Provides that a trustee who elects to use the new provisions must provide notice and a statement of information to the qualified beneficiaries of the trust and the successor trustee, if applicable, within a reasonable time after termination of the trust under its terms, the resignation or removal of the trustee, or the end of the period for which the trustee is seeking discharge. Provides that, if, after receiving the notice and trust information, a qualified beneficiary or any other party that received the notice and trust information objects to a disclosed act or omission, the qualified beneficiary must provide written notice of the objection to the trustee not later than 60 days after the notice was sent by the trustee. Provides that, if no written objection is provided in the 60-day time period, the information provided is considered approved by the recipient. Requires the trustee, in the case of a trust terminating under the terms of the trust or the trustee's resignation or removal, within a reasonable period of time following the expiration of the 60-day time period, to distribute the assets as provided in the trust or to the successor trustee. Provides that, if a qualified beneficiary gives the trustee a written objection within the applicable 60-day time period, the trustee or the qualified beneficiary may (i) submit the written objection to the court for resolution and charge the expense of commencing a proceeding to the trust or (ii) resolve the objection by a nonjudicial settlement agreement or other written agreement. Makes other changes.
AI Summary
This bill establishes a new procedure within the Illinois Trust Code for trustees to settle their accounts when a trust ends, a trustee resigns or is removed, or for interim accounting periods if a beneficiary's interest has ended but the trust continues. Under this new process, a trustee must notify the trust's qualified beneficiaries (individuals who are eligible to receive distributions from the trust) and any successor trustee (the person who will take over as trustee) with a detailed statement of the trust's financial information, including recent asset values, a five-year accounting of receipts and disbursements, estimated future transactions, any outstanding fees, and a notice that claims against the trustee may be barred if no objection is raised. Qualified beneficiaries and other recipients have 60 days to object in writing to any disclosed actions or omissions; if no objection is received within this timeframe, the provided information is considered approved, and the trustee can then distribute trust assets or transfer them to a successor trustee. If an objection is filed, the trustee and beneficiary can either submit the dispute to a court for resolution, with the trust covering the legal costs, or resolve it through a nonjudicial settlement agreement, which may include releases or indemnities for the trustee. This process aims to provide a more efficient way for trustees to finalize their responsibilities and distribute trust assets, offering a form of legal protection similar to a court-approved settlement if no objections are raised.
Sponsors (1)
Last Action
Referred to Rules Committee (on 02/10/2026)
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