DGAA bLAWg

What Is the "Prudent Investor Rule" in the Illinois Trust Code?

Web Admin - Thursday, January 23, 2020
Inverness estate planning attorney Illinois Trust CodeThe Illinois Trust Code (ITC) went into effect on January 1, 2020, replacing the former Illinois Trusts and Trustees Act and implementing a number of changes that affect trust makers, trustees, and beneficiaries. One notable adjustment is known as the “prudent investor rule,” and it affects a trustee’s ability to make investment decisions regarding the assets in a trust. Before any investment actions are taken by a trustee, it is important to review and understand the rights and responsibilities defined in the ITC.

Understanding the Prudent Investor Rule


Trustees are responsible for investing and managing the assets of a trust, and they have the duty to act prudently when making investments. This includes considering the purpose and terms of the trust, the distribution requirements, and other relevant information. Under the ITC, a trustee may also consider the environmental and social impact of investment decisions, as well as the governance policies of entities where assets are invested. Before making an investment, a trustee should consider:

- The economic conditions that may affect the investment
- The possibility of inflation or deflation
- The anticipated tax costs and consequences of the investment
- How a specific investment can affect the overall portfolio
- The anticipated total return
- The duty to sustain only feasible and suitable costs
- The need for liquidity, regular income, and preservation of capital

The ITC does allow a trustee to examine whether a trust asset has a relationship to the purpose of the trust, or to one or more of the beneficiaries, in order to help determine what to do with the asset. For example, if a trustee believes that real estate property held in a trust is of no value to the trust itself or the beneficiaries, he or she may suggest that the property be sold. A trustee is not eligible to become a beneficiary for the purpose of protecting his or her good faith in connection to the trust.

Contact a Mount Prospect Trust Attorney


The ITC has put a wide variety of rule changes in place. For trustees who manage the assets of a trust, it is imperative to understand how the prudent investor rule affects the decisions they make. To protect against liability or any other legal issues, all trust makers and trustees should seek legal counsel to determine how the ITC will affect them. At  Drost, Gilbert, Andrew & Apicella, LLC, our knowledgeable South Barrington estate planning lawyers can help you understand your rights and responsibilities and address any concerns you may have as a trust maker, trustee, or beneficiary. To schedule a free consultation, contact our office today at 847-934-6000. 

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.
 
Sources:
http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=4001&ChapterID=61


Recent Posts


Tags

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

Archive