760 ILCS 3/1104
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 11 - Total Return Trusts

Sec. 1104. Conversion or reconversion by court.(a)  The trustee may for any reason elect to petition the court to order conversion to a total return trust, including without limitation the reason that conversion under Section 1102 is unavailable because a beneficiary timely objects to the conversion to a total return trust.(b)  A beneficiary may request the trustee to convert to a total return trust or adjust the distribution percentage. If the trustee declines or fails to act within 6 months after receiving a written request to do so, the beneficiary may petition the court to order the conversion or adjustment.(c)  The trustee may petition the court prospectively to reconvert from a total return trust or adjust the distribution percentage if the trustee determines that the reconversion or adjustment will enable the trustee to better carry out the purposes of the trust. A beneficiary may request the trustee to petition the court prospectively to reconvert from a total return trust or adjust the distribution percentage. If the trustee declines or fails to act within 6 months after receiving a written request to do so, the beneficiary may petition the court to order the reconversion or adjustment.(d)  In a judicial proceeding under this Section, the trustee may, but need not, present the trustee's opinions and reasons (1) for supporting or opposing conversion to (or reconversion from or adjustment of the distribution percentage of) a total return trust, including whether the trustee believes conversion (or reconversion or adjustment of the distribution percentage) would enable the trustee to better carry out the purposes of the trust, and (2) about any other matters relevant to the proposed conversion (or reconversion or adjustment of the distribution percentage). A trustee's actions in accordance with this Section shall not be deemed improper or inconsistent with the trustee's duty of impartiality unless the court finds from all the evidence that the trustee acted in bad faith.(e)  The court shall order conversion to (or reconversion prospectively from or adjustment of the distribution percentage of) a total return trust if the court determines that the conversion (or reconversion or adjustment of the distribution percentage) will enable the trustee to better carry out the purposes of the trust and the conversion (or reconversion or adjustment of the distribution percentage) is in the best interests of the beneficiaries.(f)  The court may order any of the following actions in a proceeding brought by a trustee or a beneficiary under this Section:(1)  select a distribution percentage other than 4%;(2)  average the valuation of the trust's net assets     over a period other than 3 years;(3)  reconvert prospectively from or adjust the     distribution percentage of a total return trust;(4)  direct the distribution of net income     (determined as if the trust were not a total return trust) in excess of the distribution amount as to any or all trust assets if the distribution is necessary to preserve a tax benefit; or(5)  change or direct any administrative procedure as     the court determines necessary or helpful for the proper functioning of the total return trust.(g)  Nothing in this Section limits the equitable powers of the court to grant other relief.    (Source: P.A. 101-48, eff. 1-1-20.)