2023 Illinois Compiled Statutes › Chapter 760 - TRUSTS AND FIDUCIARIES › 760 ILCS 3/ - Illinois Trust Code. › Article 7 - Office of Trustee

(760 ILCS 3/Art. 7 heading)
Article 7.  Office of Trustee.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/701)
Sec. 701. Accepting or declining trusteeship.
(a)  Except as otherwise provided in subsection (c), a person designated as trustee accepts the trusteeship:
(1)  by substantially complying with a method of     acceptance provided in the trust instrument; or
(2)  if the trust instrument does not provide a     method or the method provided in the trust instrument is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(b)  A person designated as trustee who has not yet accepted the trusteeship may decline the trusteeship. A designated trustee who does not accept the trusteeship within 120 days after receiving notice of the designation is deemed to have declined the trusteeship.
(c)  A person designated as trustee, without accepting the trusteeship, may, but need not:
(1)  act to preserve the trust property if, within     120 days after receiving notice of the designation, the person sends a declination of the trusteeship to the settlor or, if the settlor is deceased or incapacitated, to the qualified beneficiaries; and
(2)  inspect or investigate trust property to     determine potential liability under environmental or other law or for any other purpose.
(d)  A person acting under subsection (c) is not liable for actions taken in good faith.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/702)
Sec. 702. Trustee's bond.
(a) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement.
(b) The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time.
(c) A corporate fiduciary, as defined in Section 1-5.505 of the Corporate Fiduciary Act, qualified to do trust business in this State need not give bond, even if required by the terms of the trust.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/703)
Sec. 703. Co-trustees.
(a)  Co-trustees who are unable to reach a unanimous decision may act by majority decision after prior written notice to, or written waiver of notice by, each other co-trustee.
(b)  If a vacancy occurs in a co-trusteeship, subsection (b) of Section 704 applies.
(c)  A co-trustee must participate in the performance of a trustee's function unless the co-trustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the co-trustee has properly delegated the performance of the function to another trustee.
(d)  If a co-trustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining co-trustee or a majority of the remaining co-trustees may act for the trust.
(e)  A trustee may delegate to a co-trustee for any period of time any or all of the trustee's rights, powers, and duties. Unless a delegation was irrevocable, a trustee may revoke a delegation previously made.
(f)  Except as otherwise provided in subsection (g), a trustee who is not qualified to participate in an action or who does not join in an action of another trustee is not liable for the action.
(g)  Each trustee who is not an excluded fiduciary under Section 808 shall exercise reasonable care to:
(1)  prevent a co-trustee from committing a serious     breach of trust; and
(2)  compel a co-trustee to redress a serious breach     of trust.
(h)  A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified any co-trustee of the dissent at or before the time of the action is not liable for the action unless the action is a serious breach of trust.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/704)
Sec. 704. Vacancy in trusteeship; appointment of successor.
(a)  A vacancy in a trusteeship occurs if:
(1)  a person designated as trustee declines the     trusteeship;
(2)  a person designated as trustee cannot be     identified or does not exist;
(3)  a trustee resigns;
(4)  a trustee is disqualified or removed;
(5)  a trustee dies;
(6)  a guardian is appointed for an individual     serving as trustee; or
(7)  an individual serving as trustee becomes     incapacitated.
(b)  If one or more co-trustees remain in office, a vacancy in a trusteeship need not be filled and the remaining co-trustees or trustee may act for the trust. A vacancy in a trusteeship must be filled if the trust has no remaining trustee, or if the existing vacancy impairs the administration of the trust as determined by the remaining trustees.
(c)  A vacancy in a trusteeship of a trust that is required to be filled must be filled in the following order of priority:
(1)  by a person designated in accordance with the     trust instrument to act as successor trustee;
(2)  by a person appointed by a majority of the     beneficiaries who are distributees or permissible distributees of trust income; or
(3)  by a person appointed by the court.
(d)  If a trust contains a charitable interest, then the appointment of a successor trustee provided under paragraph (2) of subsection (c) shall not take effect until 30 days after written notice is delivered to the Attorney General's Charitable Trust Bureau.  The Attorney General may waive this notice requirement.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/705)
Sec. 705. Resignation of trustee.
(a)  A trustee may resign:
(1)  upon notice to the settlor, if living, to the     beneficiaries who are distributees or permissible distributees of trust income, and all co-trustees; or
(2)  with the approval of the court.
(b)  In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
(c)  Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/706)
Sec. 706. Removal of trustee.
(a)  A settlor, a co-trustee, or a qualified beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.
(b)  The court may remove a trustee if:
(1)  the trustee has committed a serious breach of     trust;
(2)  lack of cooperation among co-trustees     substantially impairs the administration of the trust;
(3)  because of unfitness, unwillingness, or     persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the purposes of the trust and the interests of the beneficiaries; or
(4)  there has been a substantial change of     circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with any material purpose of the trust, and a suitable co-trustee or successor trustee is available.
(c)  Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief under subsection (b) of Section 1001 as may be necessary to protect the trust property or the interests of the beneficiaries.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/707)
Sec. 707. Delivery of property by former trustee.
(a)  Unless a co-trustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(b)  A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the co-trustee, successor trustee, or other person entitled to it.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/708)
Sec. 708. Compensation of trustee.
(a)  If the trust instrument does not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances.
(b)  If the trust instrument specifies the trustee's compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if:
(1)  the duties of the trustee are substantially     different from those contemplated when the trust was created; or
(2)  the compensation specified by the trust     instrument would be unreasonably low or high.
(Source: P.A. 101-48, eff. 1-1-20.)
(760 ILCS 3/709)
Sec. 709. Reimbursement of expenses.
(a)  A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for:
(1)  expenses that were properly incurred in the     administration and protection of the trust; and
(2)  to the extent necessary to prevent unjust     enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(b)  An advance by the trustee of money for the protection of the trust gives rise to a right to reimbursement with reasonable interest.
(Source: P.A. 101-48, eff. 1-1-20.)