DGAA bLAWg

Duties of Trustees to Beneficiaries

Web Admin - Wednesday, July 30, 2014

long grove wills and trusts lawyerOne common legal instrument that people use to plan their estates is a trust. A trust is a legal entity involving at least three roles: a settlor, a trustee, and a beneficiary. The idea of the trust is that each of these three roles work together. The settlor creates the rules of the trust and provides it with property, and they designate the beneficiary. The beneficiary, like the name suggests, is the person for whom the trust is managed. They derive the benefit of any income or other gains from the trust.

However, between the settlor and the beneficiary lies the trustee. The trustee manages the assets of the trust and uses them in the best interests of the beneficiary as directed by the rules of the trust that the settlor created. This means that the trustee has a variety of duties that they need to fulfill. These trustee duties can be thought of as either substantive or procedural duties. This is not an official classification, and the lines can blur, but it is at least a helpful way to catalog the duties.

Substantive Duties

Substantive duties are those that require the trustee to behave in a certain way. The central example is the duty to administer the trust by the rules the settlor laid out. The trust document will contain a variety of provisions, and it is the trustee's duty to follow them. Another example of these substantive duties is the duty of skill and care. This means that the trustee must manage the trust's assets with reasonable skill and caution. Similarly, Illinois law also imposes a “prudent investor” duty on trustees.

This means that the trustee has the duty to act as a prudent investor of the trust's assets including things like developing a diversified portfolio and actively managing investments as necessary. Trustees working with multiple beneficiaries also have a further duty: that of loyalty and impartiality. The trustee may not favor one beneficiary over the other unless the trust instrument provides some reason for it.

Procedural and Ministerial Duties

Trustees also owe beneficiaries a variety of more procedural duties, which involve the proper formalities of managing the trust. For instance, the law governing trusts in Illinois requires trustees to give annual accountings of the trust's receipts, disbursements, and an inventory of the estate. Trustees also often have duties to provide notice of certain actions such as changes in the trusteeship. This may also include a requirement that the trustee provide the beneficiaries with a copy of the trust instrument for their records.

These are just some of the many duties that trustees owe the beneficiaries of their trust. If you would like more information on the legal ramifications of managing a trust, contact an experienced Illinois estate planning attorney today. Our firm advises clients in many northwest suburban towns like Long Grove, Kenilworth, and South Barrington.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.

5 Benefits to Using an Institutional Trustee

Web Admin - Tuesday, April 08, 2014

illinois trusts and estate planning attorneyTrusts are versatile, useful legal instruments that allow the grantor (the person who sets up the trust) to set aside certain money or other assets for the use of another person (the beneficiary). However, the beneficiary does not have direct access to the assets. Instead, the trust is managed by a trustee whose job it is to control the assets and use them in the beneficiary’s best interest. This makes choosing the trustee one of the most important parts of setting up a trust.

Although most individuals can serve as a trustee, Illinois law also allows for the use of an “institutional trustee.” Institutional trustees are companies, often banks, who professionally manage the trust’s assets. These companies usually do charge a fee for the services, but the companies come with several benefits:

  • - They are skilled at managing trusts;
  • - They have the ability to handle complex paperwork and recordkeeping;
  • - They provide continuity to the management of the trust;
  • - They operate free of bias; and
  • - They are regulated to prevent fraud.

Reasons to Use an Institutional Trustee

  1. 1. Experienced Administrators: Institutional trustees have experience managing trusts. This allows them to easily navigate the legal requirements for trustees. Furthermore, many trustees are responsible for investing the trust’s assets. Banks and other institutional trustees are often professional investors who will be able to handle the task better than friends or family.

  1. 2. Strong Recordkeeping: Trusts also have fairly extensive recordkeeping requirements to prevent fraud on the part of the trustee. Institutional trustees have the infrastructure in place to make sure that important documents, like tax returns, are filed on time and do not get misplaced. Furthermore, the use of an institutional trustee prevents this complex work from being pushed onto a friend or family member.

  1. 3. Management Continuity: The corporate nature of institutional trustees also allows for continuity in the trust’s management. Trusts can last for decades and decades. An individual trustee may not be physically or mentally capable of managing a trust for its entire duration. Conversely, institutional trustees have the ability to smoothly transfer trust administration from one employee to the next, allowing for steady management of the assets.

  1. 4. Unbiased Distribution: Additionally, institutional trustees can eliminate the possibility of bias that might exist with trustees who are friends or family. The company would not have any prior history with particular beneficiaries that might interfere with the fair and evenhanded use of the trust’s assets.

  1. 5. Fraud Protection: Finally, institutional trustees have fraud prevention mechanisms in place. Although everyone would like to think that their friends or family members are above reproach, cases of theft on the part of the trustee do happen. Many institutional trustees are subject to government regulation and auditing requirements that can reduce the risk of fraud on their parts.

If you are interested in setting up a trust, consult with an Illinois estate planning lawyer to tailor one to your specific situation. Our attorneys lend their experience to clients across the northwest suburban area, including in Long Grove, Riverwoods, and Kenilworth.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.

Five Advantages of Living Trusts Over Wills

Web Admin - Friday, January 03, 2014

By Jay Andrew
JAA@DGAALAW.COM / (847) 934-6000
http://www.dgaalaw.com/jay-andrew.html

When preparing for the disposition of their property after they pass on, many people often find themselves questioning what wills and living trusts are and which document would better suit their needs. Wills, governed by the Probate Act of 1975, are legal documents that a person prepares prior to their death, which specifies how the rest of the family should distribute their property and handle the other affairs. Living trusts, which are controlled by the Trusts and Trustees Act, are legal devices that allow a person of the creator’s choosing, the trustee, to handle the disposition of their property. While everyone’s situation comes with unique considerations, living trusts may provide various advantages over wills. Five of the most important advantages include:

1. Living trusts can help your family avoid dealing with long, draw-out probate proceedings. Courts use probate proceedings to tie up a person’s loose ends, distribute their property, and generally enact their will. If you use a living trust, rather than moving through the court system, the trustee can distribute the property in accordance with the trust. This means that your family will not need to bring themselves to the courthouse and deal with the fees and hassle that come along with probate proceedings.

2. Living trusts also provide more privacy than wills do. While both wills and living trusts remain private throughout your life, the probate court will look at the will after you pass on, even if there are no formal probate proceedings. That means that the will becomes a matter of public record. On the other hand, your relatives will not need to file the trust with the court, so it can stay between them.

3. Living trusts also stand a better chance of surviving a legal challenge after your death, making it more likely that your final plans will be enacted to your specifications. The extra strength from a living trust comes from your ability to keep an active eye on it during your life. Because you would stay involved with the trust’s management during your life, relatives would find it harder to prove that you were not of sound mind when making the plan.

4. Living trusts make leaving property to minor children simpler too. Because minors cannot own most property, the trustee whom you choose can manage it for them, whereas a court appointee would likely handle the management if you chose to pass the property on with a will.

5. Living trusts have further benefits in the event that you become incapacitated while alive. Ordinarily, such circumstances would require relatives to petition the court for control of your affairs, and then the court would appoint a person to manage them. With a living trust, you can appoint a successor trustee to take over management in the event that you become incapacitated.

Decisions about testamentary dispositions can be complicated and involve multiple areas of law. If you are in the process of making such decisions, contact a Palatine estate planning lawyer today. We serve many areas in the northwest suburbs including Arlington Heights, Crystal Lake and Barrington.


Recent Posts


Tags

medical marijuana traffic violations Arlington Heights real estate lawyer wills Palatine elder law attorney Crystal Lake employment lawyer pregnant women murder charges Arlington Heights TBI attorney Illinois estate planning attorney Illinois workplace discrimination attorney Arlington Heights Attorney Palatine corporate law attorneys Illinois tax attorney School Visitation Rights Act traffic violations defense Illinois traffic ticket lawyer Palatine probate lawyer Illinois LLC creation pet law boating under the influence health insurance dispute life insurance policy startup company Illinois pedestrian accident attorney college kids bicycle dooring accidents personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Schaumburg corporate attorney Schaumburg probate attorney distracted driving accidents anesthesia errors compensatory time estate planning Schaumburg traffic lawyer Illinois criminal defense attorney Arlington Heights personal injury attorney Crystal Lake employment law attorney Jay Andrew Schaumburg criminal law attorney Rolling Meadows corporate lawyer Illinois civil litigation lawyer Rolling Meadows employment law attorneys real estate attorney Chicago attorney Des Plaines accident attorney internet preventable medical errors Rolling Meadows car accident lawyers texting while driving insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Crystal Lake traffic lawyer medical research Schaumburg injury lawyer Riverwoods estate planning lawyer pizza emoji Buffalo Grove insurance claim dispute lawyers insurance agent negligence changes to mortgage law Illinois traffic attorneys trustee Illinois employment law hands free device Illinois Wage Payment and Collection Act Crystal Lake civil litigation lawyer bike accident personal injury claim Rolling Meadows traffic law firm Rolling Meadows tax attorney Illinois insurance attorney Schaumburg estate planning lawyer Arlington Heights employment law attorneys Palatine trusts lawyer car crash Illinois Transfer on Death Instrument ACA Des Plaines drug crimes lawyer Palatine Attorney Palatine corporate attorney auto accidents Inverness DUI lawyer financial advisors Inverness insurance attorney South Barrington real estate attorney Barrington employment attorney insurance claims Chicago insurance claim attorneys insurance claim denials Buffalo Grove personal injury lawyer liability spinal cord injury swimming pools Chicago employment attorney employment attorney capital gains tax commercial leasing murder speeding traumatic brain injuries Federal Food Drug and Cosmetic Act Rolling Meadows insurance attorney crossover accidents BAIID ken apicella Illinois small business corporate law problem employees golf accidents fault based insurance Arlington Heights insurance attorney traffic laws Illinois lawyer commercial leases Family Medical Leave Act texting and driving Mt Prospect Attorney Illinois employee rights attorney. Rolling Meadows DUI lawyer Des Plaines insurance attorney Rolling Meadows accident lawyer car accident lawyers Colin H. Gilbert Kenilworth estate planning attorneys DGAA Arlington Heights accident attorney Palatine construction attorney construction accidents insurance claim denial Illinois business lawyer Chicago will attorney construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Des Plaines motorcycle accident attorney involuntary manslaughter unpaid overtime clemency Kenilworth estate planning attorney contracts Rolling Meadows Attorney wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Crystal Lake business law attorneys Illinois Trust Code Mount Prospect wills and trusts lawyers whistleblower protections Schaumburg wrongful death attorney Arlington Heights traffic attorney Illinois bicycle safety gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys sexual harassment Thanksgiving insurance dispute attorney subcontractor DUI defense Palatine civil litigation lawyer jet ski insurance dispute estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Chicago car accident lawyer special needs trust Arlington Heights injury attorney personal injury accidents underfunded trust life insurance claims independent contractor Crystal Lake law firm insurance negligence guardianship attorney agent Illinois injury lawyer car accidents Palatine business attorney Arlington Heights wills and trusts attorneys Arlington Heights car accident lawyer caretaker rights Deer Park criminal attorney trucking accident lawyers Chicago employment lawyer Illinois Landlord Tenant Ordinance Illinois job attorney bad faith insurance claims overtime violations unauthorized overtime pedestrian accidents traffic offenses eluding a police officer criminal defense Buffalo Grove real estate attorney Inverness injury lawyer Rolling Meadows Traffic Lawyer Retaliatory Discharge field sobriety test wage theft Transfer on Death Instrument operating agreements hiring employees workers compensation benefits comparative negligence Schaumburg estate attorney Chicago estate planning coronavirus Kenilworth estate planning lawyer Illinois boating accident lawyer Buffalo Grove probate lawyer Illinois pet lawyer employment contract ObamaCare in terrorem provision liens Arlington Heights trucking lawyer Des Plaines pet law attorney Barrington business law firm Illinois medical malpractice case insurance claim delay personal injury claims Illinois registered agent nursing home negligence real estate lawyer hit and run accident rest breaks Schaumburg personal injury attorney denied insurance claims Do Not Resuscitate Exclusions Rolling Meadows litigation lawyer Crystal Lake estate planning lawyer Des Plaines real estate attorney Illinois trucking safety Home Sale Contingencies Palatine injury attorney Des Plaines probate fees Barrington personal injury attorney Palatine criminal defense lawyer rumble strips estate planning trusts Illinois employment law firm life insurance lawyer defective products drug crime privacy IRELA Illinois red light cameras drug crimes lawyer loopholes DUI attorney real estate attorneys Schaumburg employment law attorneys Crystal Lake will lawyer no contest clauses Liquor Control Act Deer Park traffic accident attorney Chicago lawyer paid sick leave power of attorney for healthcare investment property Barrington employment law attorney surgical mistakes traumatic brain injury Arlington Heights employment attorney Illinois insurance claim dispute lawyers Des Plaines real estate lawyer Illinois real estate Des Plaines collections attorney tax attorney pedestrian-automobile accident probate privacy laws Deer Park traffic lawyer Schaumburg car accident attorney Rolling Meadows employment law attorney foreclosure Barrington estate planning attorney Barrington civil litigation attorney Des Plaines civil attorney Crystal Lake medical malpractice attorneys traffic crimes denial of life insurance Illinois workers compensation lawyer license revocation trusts owner responsibility Illinois will lawyer South Barrington real estate lawyer Illinois corporate lawyer breach of contract Barrington drug crime attorney child safety real estate Illinois rollover accident lawyers insurance denial appeals Des Plaines personal injury lawyer Arlington Heights medical malpractice lawyer medication errors Illinois Smoke Detector Act Crystal Lake car accident lawyer Illinois real estate lawyer Arlington Heights Traffic Lawyer Rolling Meadows employment attorney Chicago biking tips rollover accidents Schaumburg personal injury lawyer Illinois workplace lawyer criminal blended families Illinois driving without license Buffalo Grove medical malpractice lawyers natural gas Barrington medical malpractice lawyers Schaumburg personal injury lawyers truck collisions Forcible Entry loss of consortium insurance claim dispute Super Mario living trust Crystal Lake criminal defense attorney dog bites life insurance Barrington criminal lawyer Rolling Meadows insurance lawyer foreclosed rental property Crystal Lake pedestrian accident lawyer real estate closing Crystal Lake accident attorney estate attorney employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, probate process insurance adjusters trauma after an accident Illinois insurance disputes criminal record head on collisions Crystal Lake bike accident lawyer commercial real estate living trust benefits Rolling Meadows insurance dispute lawyers pay when paid contract FSLA license reinstatement Long Grove estate planning institutional trustee Inverness real estate lawyer Illinois DUI attorney defective products lawyer Schaumburg medical malpractice lawyer BUI Affordable Care Act Arlington Heights tax lawyer power of attorney medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers BAC medical malpractice claims Schaumburg criminal attorney workers comp drug possession unfunded trust Palatine traffic lawyer criminal law Des Plaines drug lawyer DNR denied insurance claim Illinois wrongful termination lawyer Illinois mortgages advance healthcare directive insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Chicago trucking accident attorney products liability comp time Rolling Meadows probate lawyer Des Plaines Traffic Lawyer Illinois wills and trusts real estate contract home inspection lawyer Rolling Meadows estate planning attorney Illinois speeding lawyer premises liability Illinois insurance claims lawyers Des Plaines personal injury lawyers motorcycle accident lawyer Deer Park motorcycle accident lawyer preventing accidents Mount Prospect elder law attorney Deer Park real estate law firm Policy Cancellation workplace sexual harassment automated cars Illinois home inspection employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys estate planning for college students Rolling Meadows marijuana attorney estate tax Illinois insurance dispute lawyers Crystal Lake car accident attorney Deer Park medical malpractice attorney Crystal Lake pet attorney car crashes Inverness personal injury attorney unpaid assessment employees FMLA Fourth of July Inverness real estate attorney Illinois medical malpractice attorney Colin Gilbert Arlington Heights lawyer Illinois workers compensation attorney Buffalo Grove traffic lawyers Schaumburg insurance lawyers healthcare vacation home fines Mount Prospect real estate lawyer TBI Crystal Lake personal injury lawyer landlord tenant law dealing with problem employees Illinois estate planning law firm PTSD Chicago estate planning lawyer insurance agents Schaumburg employment attorney accidental death benefits license installment contracts Food and Drug Administration's Food Safety Modernization Act Barrington Illinois estate planning lawyer Barrington workers compensation attorney Joliet general practice lawyers Rolling Meadows medical malpractice lawyers Buffalo Grove law firm living wills motorcycle accident civil litigation Illinois employment laws product liability Inverness estate planning lawyer civil rights violation Illinois medical malpractice claim uninsured motorist Crystal Lake insurance lawyer trust payments slip and fall Des Plaines medical malpractice attorney probate claims Crystal Lake injury attorney Palatine civil attorney Fair Labor Standards Act Detainer Actions medical malpractice compensation income distribution deducation Palatine real estate lawyer healthcare claims Rolling Meadows boating crash lawyer Rolling Meadows criminal attorney federal crimes Whistleblower Claims low-ball insurance settlement Buffalo Grove traffic attorney Schaumburg real estate lawyer personal injury lawyer Illinois jet ski accident lawyer expungement slip and fall accidents Buffalo Grove criminal defense lawyer Illinois estate planning sole proprietorship cell phone accidents Schaumburg estate planning lawyer marijuana vacation home irrevocable trust attorney fees Illinois personal injury lawyer underinsured motorist Des Plaines claims law firm car crash injuries Illinois living will Palatine law firm senior citizens condo association Illinois Sales Representative Act IRS Chicago insurance law firm overtime pay Barrington Traffic Lawyer Palatine personal injury lawyer drug crimes Illinois attorney fiduciary rule delay new real estate form severance agreements boating DUI employment law Inverness traffic law firm Illinois collections attorney boating accidents DUI penalities holiday statistics IRA benefits Schaumburg estate planning attorney dynasty trusts Illinois insurance claim dispute lawyer natural gas explosion Arlington Heights wills and trusts lawyers medical malpractice Inverness civil lawyer Illinois trusts attorney business litigation Palatine traffic accidents Home Remodeling Repair Act Barrington real estate lawyer Illinois probate lawyer revenge porn Long Grove estate planning attorney homestead rights federal regulations for LLCs Des Plaines tax law firm breathalyzer test Crystal Lake tax lawyer insurance denials Illinois Human Rights Act Inverness corporate attorney elder law traffic tickets Barrington litigation attorney Barrington boating accident attorney construction contracts Rolling Meadows personal injury lawyer condo drugs reckless homicide Long Grove estate planning attorneys filing a medical malpractice claim Deer Park DUI lawyer residential real estate digital media accounts, estate planning, Arlington Heights estate planning attorney, Class A misdemeanor Rolling Meadows traffic attorney small business Self-Directed IRA Accounts Palatine employment attorney Long Grove real estate attorney DUI Illinois traffic laws workers compensation Barrington estate planning lawyer Deer Park workers compensation lawyer Des Plaines injury law firm food poisoning deadly crashes Schaumburg civil litigation attorney insurance attorney Attorney Ken Apicella llinois Real Estate Lawyers Association blood alcohol content Deer Park employment law attorney drunk driving statistics Crystal Lake employment attorney liability claims wrongful termination Schaumburg Attorney Illinois personal injury attorney job lawyers Crystal Lake medical malpractice lawyer cell phone tower data Schaumburg construction accident lawyer trucking accidents elder abuse brain injury social media after death pain and suffering Palatine punch death icy parking lots personal injury attorney pedestrian injuries, pedestrian fatality Rolling Meadows business lawyer digital information insurance claim dispute attorney Palatine workers compensation lawyer Crystal Lake personal injury attorney Palatine estate planning lawyer real estate leasing wills and trusts Rolling Meadows insurance dispute lawyers, insurance dispute underage DUI Long Grove wills and trusts attorneys Rolling Meadows criminal lawyer back injuries Illinois elder law attorney license suspension Buffalo Grove corporate attorney Illinois wills and trusts attorneys murder defense Illinois personal injury lawyers jet ski accidents creditors real estate zoning probate lawyer Illinois traffic accident lawyer consent to a search Crystal Lake traffic attorney IRA trust transfer Barrington personal injury lawyer car collision Buffalo Grove injury lawyer Arlington Heights criminal lawyer digital assets Arlington Heights car crash attorneys right to work traffic deaths Illinois insurance lawyer controlled substance fatal car accidents pet bites Illinois medical malpractice lawyers estate planning attorney mortgage Crystal lake insurance dispute attorney Chicago will attorney, social media platforms, Illinois estate planning lawyer, Rolling Meadows drug defense attorney Legal Info Barrington employment law firm Illinois traffic attorney work unions disability benefits forming a corporation in Illinois Schaumburg elder law lawyer manufacturing Illinois business law atorneys Inverness elder law lawyer insurance claim Rolling Meadows personal injury lawyers Deer Park accident attorney Rolling Meadows real estate attorney Des Plaines DUI attorney trench injuries Arlington Heights estate planning attorney personal injury Illinois employment law attorney employment lawyer Illinois employment lawyer employee misclassification distracted driving accident victims civil litigation attorney Rolling Meadows Illinois employment law attorneys Chicago traffic lawyer estate plan Des Plaines personal injury attorney POA Deer Park personal injury lawyer insurance disputes cell phone Illinois personal injury Arlington Heights wills and trusts lawyer Buffalo Grove employment lawyer dram shop law Illinois construction accident attorney Des Plaines criminal attorney Barrington injury attorney Illinois motorcycle accident lawyer first degree murder landlord minimum wage Inverness probate lawyer sexual images Illinois law employee rights appealing an insurance claim living trust vs will Chicago corporate attorney Arlington Heights wills and trusts attorney Long Grove real estate lawyer drunk driving Illinois defective products attorney LLCs suspended license marijuana crimes attorney modern family estate planning Palatine employment lawyer Buffalo Grove personal injury attorney spinal cord injuries taxes employee discrimination Palatine insurance lawyer mass shooting CAM Crystal Lake medical malpractice law firm digital evidence meal breaks Illinois Workers’ Compensation Commission estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers Arlington Heights personal injury lawyer employment law, Illinois employment laws wrongful death Employment Discrimination Law pedestrian accident DMV Illinois insurance claim attorney Barrington attorney personal injury law firm rollover car crashes Barrington criminal defense lawyer gift taxes probate claims process rent to own real estate contracts driving Buffalo Grove car accident lawyer bicycle accidents Schaumburg drug defense lawyer fiduciary rule Palatine employment law lawyer car accident lawyer deed transfer digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Illinois car accident attorney Palatine drug lawyer Illinois Probate Act of 1975 Rolling Meadows personal injury attorney Illinois employment attorneys Inverness accident lawyer GM ignition switches caregiver traffic accidents car accident Arlington Heights pedestrian accidents

Archive