Trustees are often asked to make difficult decisions under circumstances that the trustee did not anticipate before accepting the role. In some cases, the language in the trust instrument isn’t clear, and the trustee may be unsure of what to do. In others, one or more beneficiaries may disagree with a trustee’s plans for the trust’s assets or may otherwise express hostility towards the trustee and threaten litigation. Unfortunately, case law is filled with a wide range of conflicts that trap the trustee in a years-long contentious lawsuit that puts the trustee at risk while offering no upside. In these situations, the trustee usually deeply regrets doing their friend or family member a favor by accepting the role of trustee in the first place. Fortunately, where there is a bona fide dispute over the meaning of a trust term or the proper course of action for a trustee to take, Illinois law provides trustees with a way to prevent their favors from turning into regrets.
Let The Court Give You Instructions
The Illinois Trust Code provides trustees with a way out of uninvited predicaments. Section 201 of the Illinois Trust Code provides:
- The court may adjudicate any matter arising in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law.
- A trust is not subject to continuing judicial supervision unless ordered by the court.
- A judicial proceeding involving a trust may relate to any matter involving the trust's administration, including a request for instructions.
Under this provision, when there is a dispute over what the trustee should do, the trustee may initiate a proceeding through which the court resolves the dispute for everyone. If used properly, this process shields the trustee from the risk of liability and allows each party an opportunity to make their case for how they believe the trust should be administered. Although this process might still subject the parties to certain costs and inconveniences, it often preemptively ends what otherwise could have been a years-long fight that tears apart families and empties their pocketbooks. In most cases, the costs of initiating this type of proceeding are paid out of the trust’s assets, not the trustee’s own pockets. As the lesser of two evils, this often-overlooked process allows a trustee to honor their friend’s or loved one’s wishes without having to bear the costs (both emotional and financial) of being sued after of doing what was believed to be the right thing.
Sometimes, it is best to act first and ask for forgiveness later. As a trustee, the opposite is usually true. If you are a trustee and feel that a dispute regarding the trust’s administration is brewing, let us help prevent your favor from turning into a nightmare. With decades of experience in high stakes trust litigation, our attorneys will effectively and efficiently guide you through the process of obtaining instructions from the court, which may be the only true way to keep your friend’s or loved one’s wishes alive.