Opinion ID: 1225678
Heading Depth: 2
Heading Rank: 3

Heading: Adequate Records

Text: Defendant contends he maintained adequate records of the Trust activity. Defendant's main arguments on appeal are that (1) monthly brokerage statements from the sole brokerage account used by the Trust log every transfer in and out of the Trust account; and (2) Plaintiff's father had access to these records on an ongoing basis and Plaintiff now has copies of all of the monthly statements. [4] Plaintiff contents that the brokerage statements are insufficient records because they do not indicate the purposes of the distributions as required by Illinois law. The Illinois Trusts and Trustees Act establishes that, [e]very trustee at least annually shall furnish to the beneficiaries. . . a current account showing the receipts, disbursements and inventory of the trust estate. 760 ILCS 5/11(a). In Illinois, a beneficiary is entitled to learn from his trustee `what property came into his hands, what has passed out, and what remains therein, including all receipts and disbursements in cash, and the sources from which they came, to whom paid and for what purpose paid.' McCormick v. McCormick, 118 Ill.App.3d 455, 74 Ill.Dec. 73, 455 N.E.2d 103, 109 (1983) (citing Wylie v. Bushnell, 277 Ill. 484, 115 N.E. 618, 622 (1917)). Failing to maintain adequate records is a significant issue, not only because it constitutes an independent cause of action, but also because [w]here there has been a negligent failure to keep trust accounts, all presumptions will be against the trustee upon a settlement; obscurities and doubts being resolved adversely to him. First Nat'l Bank & Trust Co. of Racine v. Vill. of Skokie, 190 F.2d 791, 796 (7th Cir.1951) (citing Crimp v. First Union Trust & Sav. Bank, 352 Ill. 93, 185 N.E. 179, 183 (1933) (Sheraton Broadway Plantation 1933)). Defendant's argument is off target and does not require lengthy discussion. The district court did not focus on a lack of access to existing documents, but rather on the non-existence of documents to which Plaintiff was entitled. There being no dispute as to the absence of any record indicating the purposes for the various distributions, the district court properly found that Defendant violated his duty under Illinois law to provide adequate records to Plaintiff as beneficiary of the Trust.