Overview

A trust is a legal relationship in which one or more persons or entities (the "trustee") is empowered by the grantor (also known as the "trustor" or "settlor") to hold legal title to property in a fiduciary capacity and manage it for the benefit of one or more persons or charities (the "beneficiaries"). In a declaration of trust, the grantor also acts as the trustee. Probate is typical in this situation.

The basic duties of a trustee involve the collection, management and investment of trust assets and the accumulation and distribution of income and principal to beneficiaries, all pursuant to the terms of the trust agreement. The duties of a trustee will vary based on each trust's facts and circumstances. These duties are defined both in the trust agreement and by law (see 760 ILCS 5/ Trusts and Trustees Act). A trustee can be held personally liable to the grantor and the beneficiaries for his or her failure to reasonably comply with these duties.