2023 Illinois Compiled Statutes › Chapter 760 - TRUSTS AND FIDUCIARIES › 760 ILCS 3/ - Illinois Trust Code. › Article 6 - Revocable Trusts

(760 ILCS 3/Art. 6 heading)
Article 6.  Revocable Trusts.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/601)
Sec. 601. Capacity of settlor of revocable trust. The capacity required of the settlor to create, amend, revoke in whole or in part, or add property to a revocable trust is the same as that required to make a will.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/602)
Sec. 602. Revocation or amendment of revocable trust.
(a)  The settlor may revoke a trust only if the trust instrument expressly provides that the trust is revocable or that the settlor has an unrestricted power of amendment.  The settlor may amend a trust only if the trust expressly provides that the trust is revocable or amendable by the settlor.
(b)  If a revocable trust has more than one settlor:
(1)  to the extent the trust consists of community     property, the trust may be revoked by either spouse acting alone but may be amended only by joint action of both spouses;
(2)  to the extent the trust consists of property     other than community property, each settlor may revoke or amend the trust only with regard to the portion of the trust property attributable to that settlor's contribution; and
(3)  upon the revocation or amendment of the trust by     fewer than all of the settlors, the trustee shall promptly notify the other settlors of the revocation or amendment.
(c)  The settlor may revoke or amend a revocable trust instrument:
(1)  by substantially complying with a method     provided in the trust instrument; or
(2)  if the trust instrument does not provide a     method or the method provided in the terms is not expressly made exclusive, by a later instrument in writing other than a will, signed by the settlor and specifically referring to the trust.
(d)  Upon revocation of a revocable trust, the trustee shall deliver the trust property to the settlor or as the settlor directs.
(e)  A settlor's powers with respect to revocation, amendment, or distribution of trust property may not be exercised by an agent under a power of attorney unless expressly authorized by the power and not prohibited by the trust instrument.
(f)  A guardian of the estate of the settlor, if any, or a guardian of the person of the settlor may not exercise a settlor's powers with respect to revocation, amendment, or distribution of trust property unless ordered by the court supervising the guardianship.
(g)  A trustee who does not know that a trust has been revoked or amended is not liable for distributions made and other actions taken or not taken on the assumption that the trust had not been amended or revoked.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/603)
Sec. 603. Settlor's powers; powers of withdrawal.
(a)  To the extent a trust is revocable by a settlor, and the settlor personally has capacity to revoke the trust, a trustee may follow a direction of the settlor that is contrary to the terms of the trust. To the extent a trust is revocable by a settlor in conjunction with a person other than a trustee or person holding an adverse interest, and the settlor and such other person personally have the capacity to revoke the trust, the trustee may follow a direction from the settlor and the other person holding the power to revoke even if the direction is contrary to the terms of the trust.
(b) To the extent a trust is revocable by a settlor, and the settlor personally has capacity to revoke the trust, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.
(c)  While a trust is revocable by a settlor but the settlor does not personally have the capacity to revoke the trust, the duties of the trustee are owed only to the settlor and current beneficiaries.  If the settlor is a beneficiary, the settlor's interests as a beneficiary take priority over the interests of all other beneficiaries.
(d)  Except as provided in subsection (e), only the settlor, a representative of the settlor under Article 3 during the settlor's lifetime if the settlor is incapacitated, and the representative of the settlor's estate after the settlor's death have standing to contest, challenge, or bring any proceeding in any court regarding any action of the trustee of a revocable trust taken or not taken while the trust is revocable.
(e)  An individual who is or was a current beneficiary during the settlor's lifetime, a representative of such an individual under Article 3 or the representative of such individual's estate after the individual's death, has standing to contest, challenge, or bring any proceeding in any court regarding any action of the trustee of a revocable trust while the trust is revocable but  the settlor does not personally have capacity to revoke the trust, but only to the extent the action of the trustee affects the interest of the individual as a current beneficiary of the trust during the lifetime of the settlor while the settlor does not personally have the capacity to revoke the trust.
(f)  The holder of a non-lapsing power of withdrawal, during the period the power may be exercised, has the rights of a settlor of a revocable trust to the extent of the property subject to the power.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/604)
Sec. 604. Limitation on action contesting validity of revocable trust; distribution of trust property.
(a)  A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death only within the earlier of:
(1)  2 years after the settlor's death; or
(2)(A) in the case of a trust to which a legacy is     provided by the settlor's will that is admitted to probate, the time to contest the validity of the settlor's will as provided in the Probate Act of 1975; or
(B) in the case of a trust other than a trust     described in subdivision (A), 6 months after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the 6-month period allowed for commencing a proceeding.
(b)  Nine months after the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the trust instrument. The trustee is not subject to liability for doing so unless:
(1)  the trustee knows of a pending judicial     proceeding contesting the validity of the trust; or
(2)  a potential contestant has notified the trustee     of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within 60 days after the contestant sent the notification.
(c)  A beneficiary of a trust that was revocable at the settlor's death that is determined to have been invalid is liable to return any distribution received and all income and appreciation associated with the distribution from the date of receipt until the date of return of the distribution.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/605)
Sec. 605. Revocation of provisions in revocable trust by divorce or annulment.
(a)  As used in this Section:
(1)  "Judicial termination of marriage" includes, but     is not limited to, divorce, dissolution, annulment or declaration of invalidity of marriage.
(2)  "Provision pertaining to the settlor's former     spouse" includes, but is not limited to, every present or future gift or interest or power of appointment given to the settlor's former spouse or right of the settlor's former spouse to serve in a fiduciary capacity.
(3)  "Trust" means a trust created by a     nontestamentary instrument executed after January 1, 1982.
(4)  Notwithstanding the definition of "revocable" in     Section 103, a provision is revocable by the settlor if the settlor has the power at the time of the entry of the judgment of judicial termination of marriage of the settlor to revoke, modify, or amend the provision, either alone or in conjunction with any other person or persons.
(b)  Unless the trust instrument or the judgment of judicial termination of marriage expressly provides otherwise, judicial termination of marriage of the settlor of a trust revokes every provision that is revocable by the settlor pertaining to the settlor's former spouse in a trust instrument or amendment executed by the settlor before the entry of the judgment of judicial termination of marriage of the settlor and any such trust shall be administered and construed as if the settlor's former spouse had died upon entry of the judgment of judicial termination of marriage.
(c)  A trustee who has no actual knowledge of a judgment of judicial termination of marriage of the settlor is not liable for any action taken or omitted in good faith on the assumption that the settlor is married.  The preceding sentence is intended to affect only the liability of the trustee and shall not affect the disposition of beneficial interests in any trust.
(d)  Notwithstanding Section 102, this Section  may be made applicable by specific reference in the trust instrument to this Section in any (1) land trust; (2) voting trust; (3) security instrument such as a trust deed or mortgage; (4) liquidation trust; (5) escrow; (6) instrument under which a nominee, custodian for property or paying or receiving agent is appointed; or (7) trust created by a deposit arrangement in a bank or savings institution, commonly known as "Totten Trust".
(e)  If provisions of a trust are revoked solely by this Section, they are revived by the settlor's remarriage to the former spouse.
(Source: P.A. 101-48, eff. 1-1-20; 102-279, eff. 1-1-22.)