From the moment the grantor of a trust passes away, the successor trustee steps into the responsibility of administering the trust.
Many times this process starts out normally. The trustee notifies the beneficiaries and begins administering the trust. But things don’t always go smoothly.
Weeks can go by without an update. You might try calling them, sending emails, but they still don’t respond. Sometimes it’s because the trustee is unaware of their responsibilities, or they are simply overwhelmed.
But when months have passed without contact, you’re left wondering if something more serious is happening.
For trustees, communication isn’t just a courtesy. It’s part of their fiduciary responsibility to keep beneficiaries reasonably informed about the administration of the trust.
Whether intentional or not, a trustee who repeatedly fails to communicate with beneficiaries may be engaging in trustee misconduct in Illinois by breaching their fiduciary duty.
Understanding the responsibilities of a trustee and what they’re required to communicate is an important part of protecting your rights as a beneficiary.
What Are a Trustee’s Duties to Beneficiaries in Illinois?
Trustees have numerous responsibilities under the Illinois Trust Code. One of the biggest trustee duties to beneficiaries in Illinois is the duty to provide transparency around information and accountings about the trust.
That duty typically begins by notifying beneficiaries about the trust administration process, providing information required by law, and keeping named beneficiaries reasonably informed throughout administration. If there are any delays in the process, the trustee is expected to communicate them to the beneficiaries and keep them updated.
Beneficiaries may naturally have questions about what assets are being held in the trust, which, if any, have been sold, or why a distribution hasn’t been made. Trustees should respond to these questions in a reasonable amount of time, but they should generally not ignore reasonable requests for information or withhold information they are required to provide.
Trustees are generally required to provide beneficiaries with information and accountings required by Illinois law and the terms of the trust. The accounting is intended to notify beneficiaries of the trust assets, income, expenses, investments, and distributions. The Illinois Trust Code generally requires trustees to also provide an annual accounting to all beneficiaries as long as the trust remains active.
Beneficiaries aren’t expected to simply “trust” that everything is being handled appropriately. Communication requirements are intended to keep beneficiaries informed, and trustees honest, throughout the process.
When Does Not Communicating With Beneficiaries Become Trustee Misconduct in Illinois?
A trustee isn’t expected to answer every question immediately, but repeatedly ignoring or not responding can be considered trustee misconduct in Illinois.
Administering a trust takes time, and the trustee has many responsibilities beyond communicating with beneficiaries. So when does not communicating with beneficiaries become a breach of fiduciary duty?
Whether a trustee’s lack of communication constitutes a breach depends on the individual circumstances. An occasional delay may not be enough to violate a trustee’s duty, but repeated failures to respond to emails or phone calls or to provide information may be considered a breach of fiduciary duty.
When months pass with little or no communication, it can be a larger sign of problems with the administration of the trust, or even of misconduct. Trustees who refuse to answer questions or provide an accounting of the trust assets raise suspicion. While silence alone isn’t enough to prove financial misconduct or self-dealing, it makes it difficult for beneficiaries to know if the trust is being managed correctly.
They could also be misusing trust assets in other ways, such as taking excessive compensation, or selling or investing assets in a way that doesn’t benefit the beneficiaries. Those become signs that you should contact a trust dispute lawyer in Chicago.
Beneficiaries aren’t necessarily entitled to unlimited access to every trust document or decision, but they should be kept informed about major developments, the sale of real estate, investment decisions, delays in distributions and other reasonable events of interest.
Can a Trustee Be a Beneficiary?
Trustees are chosen by the person who establishes the trust, but there is no rule in Illinois dictating that they cannot also be beneficiaries themselves. In fact, it is extremely common for the trustee to be a closely related family member, oftentimes a surviving spouse or an adult child.
When the trustee is also a beneficiary and entitled to inherit, they still have a duty to act in the best interest of the other named beneficiaries of the trust. Trusts typically have a set of terms which must be followed. The trustee must administer the trust fairly according to its terms, and without letting personal interests influence trust decisions.
For example, imagine the trustee is the eldest of the grantor’s 3 children. They pay distributions to themselves and their own children, while delaying their siblings distributions and ignoring their questions.
That would be a violation of the trustee’s duties to beneficiaries. Under Illinois law, trustees must administer the trust impartially, according to its terms. Even when they are a beneficiary themselves, they cannot favor their own interests over other beneficiaries.
Because trustees might also be family members, involving a trust litigation attorney in Chicago is often preferred because they can handle all interactions from a neutral position, without emotion or hostility.
What Should Beneficiaries Do if a Trustee Is Not Responding?
When a trustee is not responding to beneficiaries phone calls, emails, or texts, there are three things you can do to spur action.
1. Request Information in Writing
Send a formal letter to the trustee requesting the information you need. Explain what information you are requesting, such as an accounting of trust assets, or a record of payments, and that you are requesting the information for transparency.
2. Keep Records
Save any previous correspondence, including physical letters, emails, and text messages that you have exchanged with the trustee. Note down the dates of each communication and how long between each.
3. Consult a Chicago Trust Litigation Lawyer
If the trustee continues to not communicate with beneficiaries, a trust litigation lawyer can help. That doesn’t necessarily mean that the issue is going to court, but a lawyer can contact the trustee, explain their obligations to beneficiaries, and request information.
A lack of communication doesn’t always mean a trustee is hiding or stealing anything. Oftentimes they are overwhelmed by the process and may not have anyone to help them. Or, they may not fully understand the extent of their obligations. Beneficiaries shouldn’t rush to judgement, but they should consider contacting an attorney.
Contacting an attorney can spur the trustee to get help from their own attorney. In many cases, communication improves when each side has an attorney to represent them.
What Legal Remedies Are Available if a Trustee Does Not Communicate With Beneficiaries?
When a trustee still refuses to communicate even after involving a trust litigation attorney, Chicago courts have several options to enforce beneficiary rights against a trustee.
Depending on the circumstances, courts may order the trustee to provide an accounting or disclose trust records. They can also compel the trustee to make distributions and other fiduciary duties required by the trust. When the trustee isn’t acting maliciously, this is often enough to get them to take action.
However, in more serious cases of trustee misconduct in Illinois, the court may actually remove the trustee, and appoint a successor trustee in their place who will take over the duties.
If it can be proven that the trustee was self-dealing or making transactions that benefit themselves at the expense of beneficiaries, the court can order a repayment of losses, or of improper trustee compensation. In certain cases, they may be able to unwind or reverse improper transactions, or potentially award attorney’s fees.
Staza Law: Chicago Trust Litigation Lawyers
Whether they are family members, close family friends, or a neutral party, trustees have an obligation to act in the best interests of the trust’s beneficiaries. That starts with providing information, and regularly communicating with beneficiaries throughout the process.
If you’re dealing with a trustee not communicating with beneficiaries, sometimes the help of a lawyer is needed to spur action.
Staza Law helps Chicago area families resolve trust disputes with experienced legal representation. Don’t let a trustee’s lack of communication keep you from staying up to date with the happenings in your family’s trust.
Contact Staza Law today for an initial consultation, and let us guide you towards a resolution.