Recognizing that investment decisions and disposals of fiduciary real estate may have led to concerns beyond the dollar and the penny, ITC allows agents to consider social, environmental and other factors in their investment decisions, as long as they adhere to the investor`s prudential rule and these considerations are consistent with fiduciary documents. The Illinois legislature recently passed a law and the governor signed a law that will create a new code of trust for Illinois. The Illinois Fiduciary Code (“Code”), as it is called, generally follows the Uniform Trust Code (“UTC”), which has been adopted in 33 other states and the District of Columbia, although jurisdictions often make some changes to the UTC. The code will apply as of January 1, 2020 to all trusts governed by Illinois law. This means that the trustees of these trusts must provide accounts only to the beneficiaries who are then entitled to receive income from the trust estate or, in the absence of such a person, to the beneficiaries who are entitled to income from the trust estate. The trustee is not required to provide accounts to the remaining beneficiaries. The ITC expands the current list of persons likely to represent and retain beneficiaries to include the holder of a general appointment mandate and the holder of a very broad non-general appointing authority (i.e. a power that can be exercised for the benefit of any other than the holder of power, the succession of the holder, creditors or creditors of the holder`s estate). The holder of the power may represent all persons whose interests in the trust may be eliminated by the exercise or exercise of the power.
For confederators and their advisers, careful consideration should be given to whether a beneficiary should have appointing authority and, if so, whether he or she should represent other beneficiaries. Trustmakers may limit the representation of an appointing authority holder. Similarly, a trustmaker may consider appointing a designated representative (or having an appointment mechanism). While there are some restrictions for a designated representative, it can be a useful tool for a problematic family member who will be a beneficiary of a trust. Directors may now feel more comfortable delegating discretionary powers to an agent, since the agent`s actions or faults do not lead to the agent`s liability, as long as the agent demonstrates sufficient diligence, skill and prudence in the selection of the agent, in order to clearly determine the scope and conditions of the delegation that correspond to the objectives and instrument of trust of the agent. the trust; and regularly checks the officer`s behaviour to ensure that he or she is acting within his or her powers. While this article provides only a brief overview of the new code, the code itself will have a considerable influence on how positions of trust are managed in Illinois and on the positions of trust (including revocable trust) that exist today. Given the new law, it may be an opportune time to have your estate plan audited. Step 2 – Start by filling out the first page of the Living Trust form with the following information: A Living Trust is especially useful if you own real estate in more than one state.
The general rule is that real property is examined where it is located. Holding real estate in more than one state leads to one primary estate administration in the state of your legal residence and another (called an “auxiliary administration”) in any other state where you own real estate. However, since no reduction is required for real estate in a trust, you can bypass ancillary administration by transferring your out-of-state real estate to a living trust. . . .