New Illinois law has clients wondering who will be entitled to a copy and an accounting of their trust

Illinois passed a new law that has concerned some clients about who is entitled to a copy of their trust and/or a copy of a trust accounting after the trust becomes irrevocable.In most cases, when the grantors (or owners) of a revocable living trust pass away, it becomes irrevocable, or if a trust was created at the outset to be irrevocable, Notice is required to be sent to all Qualified Beneficiaries of the trust.

Who are your Qualified Beneficiaries?

A qualified beneficiary is a person who is, or maybe, entitled to receive income or principal from the trust after the trust becomes irrevocable. This includes the contingent beneficiaries named in your trust (those who would receive funds if your first-named beneficiaries failed to survive). For many of our clients, this includes “heirs at law” or closest blood/adopted relatives, and perhaps designated charities. For others who set up a two-trust plan with a Family Trust, after the death of the first spouse, the “descendants” are also often named as Qualified Beneficiaries.

What does the Notice include for the Qualified Beneficiaries?

The Notice shall notify all qualified beneficiaries of the trust existence, of their right to request a complete copy of the trust document, and whether they have a right to receive or request trust accountings. This Notice is required to be sent within 90 days of “the trust becoming irrevocable…” (760 ILCS 3/813.1 C).

What should you do about this law change?

If you are concerned about who is entitled to receive Notice under your current trust language, please email us and we will inform you of your Qualified Beneficiaries in your trust. If you would like to reduce the cost of sending out more Notices than legally required and limit who may be entitled to receive Notice under your trust to your children or other “next in line” close family members, an amendment to your trust is suggested.