NEWSFLASH: The New Illinois Trust Code

By: Tara M. Coffman, Esquire

Illinois has enacted a new trust code that becomes effective January 1, 2020. The new Illinois Trust Code (“Code”) makes sweeping changes to current law, and it will apply to all trusts governed by Illinois law.  Among the most significant changes are the new default and mandatory provisions that the Code introduces. Many default provisions of the Code can be avoided or altered by drafting specific language in the trust instrument. However, certain provisions of the Code are mandatory and will prevail regardless of how the trust instrument is drafted. A few of the notable mandatory provisions apply to a trustee’s accounting procedures and their duty to inform certain parties.

The Code also expands the class of beneficiaries entitled to receive annual accountings. It is important to note that the new accounting provisions do not apply to every trust. The Code adopts the prior Illinois statute on accountings for all trusts that were irrevocable before January 1, 2020 and for a trustee of a revocable trust who began acting prior to January 1, 2020.

These are only some of the changes under the new Illinois Trust Code. Overall, this new Code will have a significant impact on how trusts are drafted and administered after it becomes effective on January 1, 2020.

For more information, please contact Gerald L. Schenk, Esquire at gschenk@satclaw.com, or Tara M. Coffman, Esquire at tcoffman@satclaw.com

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