Annual Trust Accounting Requirements in Illinois

At a glance

Requirements one by one

The January 1, 2020 line changes the accounting regime

Section 813.1 applies prospectively to a trust that became irrevocable after the Illinois Trust Code took effect and, subject to § 603(b)–(c), to a revocable trust unless its trustee accepted before the effective date. Section 813.2 instead covers a trust that became irrevocable before January 1, 2020 and a revocable-trust trustee who accepted before then.

For a capable settlor's revocable trust, beneficiary rights remain under the settlor's control and the trustee's duties run exclusively to the settlor. If the settlor lacks capacity, duties run to the settlor and current beneficiaries, with the settlor's beneficial interest taking priority.

Post-2020 and legacy recipients are not the same

Under § 813.1(b)(2)–(4), all current beneficiaries receive an accounting at least annually. All presumptive remainder beneficiaries also receive one annually unless the trust changes that default. At termination, every beneficiary entitled to a residue distribution receives an accounting.

Section 813.2(b)–(d) uses a different legacy list. The annual current account goes to beneficiaries receiving or entitled to income, or, if there are none, those eligible to benefit from income. The final account goes to beneficiaries entitled to distribution. An incapacitated beneficiary's representative receives the account, with a spouse, parent, adult child, or guardian fallback when no estate representative is appointed.

A trust accounting has defined minimum contents

Section 103(38) defines the accounting as one or more written communications for the accounting year. It describes trust property, liabilities, receipts, disbursements, trustee compensation, closing asset values to the extent feasible, and every other material fact concerning administration.

For an asset without a readily available market value, §§ 813.1(b)(8) and 813.2(e) let the trustee decide whether to estimate value or use a nominal carrying value, how to estimate, and whether and how often to hire a professional appraiser. The legacy current account separately states receipts, disbursements, and inventory; the final account adds distributions and makes unfurnished prior accounts available.

Termination, vacancy, and court review follow separate rules

Termination triggers the recipient-specific final accounting in either regime. Under § 813.1(c), a vacancy without a remaining cotrustee makes the former trustee send the required accounting; a personal representative or guardian may do so for a deceased or incapacitated trustee.

Judicial approval is optional for the trustee. Section 813.1(i) lets a trustee ask the court to approve a current or final accounting. Reasonable and necessary costs are payable by the trust and allocated between income and principal under the statute's referenced act.

Delivery, waiver, and trust terms must be kept distinct

Section 109(a)–(e) permits any reasonably suitable method likely to result in receipt, including first-class mail, personal delivery, delivery to a last known home or business, and a properly directed electronic message. The statutory presumption for electronic receipt requires the recipient to have agreed to electronic delivery or access.

Under § 813.1(g), a qualified beneficiary may waive information such as an accounting by a writing delivered to the trustee and may withdraw that waiver for future accountings. Section 105 makes the post-2020 current-beneficiary annual duty and residue-beneficiary termination duty mandatory despite contrary terms. It does not place the presumptive-remainder annual duty or § 813.2 legacy duties on the same mandatory list.

Disclosure, settlement, and release have different effects

Under § 1005(a)–(c), an adequately disclosed post-2020 matter becomes binding unless suit begins within two years after the information was furnished. A legacy current or final account generally becomes binding after three years. Unless an earlier bar applies, a five-year outside period begins at the first listed trustee, beneficiary-interest, or trust-termination event; the fraudulent-concealment rule is preserved.

Interested persons may use § 111(a), (b)(2), (7), (9), and (d)–(e) to approve an account, determine compensation, resolve liability, and obtain a final binding settlement. The trust instrument can expressly prohibit use of § 111 as described in subsection (g). A separate beneficiary consent, release, or ratification under § 1009(a)–(b) fails if induced by trustee misconduct or given without knowledge of rights or material facts; self-dealing also must be fair and reasonable.

What trips people up

• Post-2020 does not mean one recipient class. Current beneficiaries have a mandatory annual right; presumptive remainder beneficiaries have a default annual right that the trust may alter.
• A vacancy is not an ordinary trustee-change notice. When no cotrustee remains, § 813.1(c) places the required accounting on the former trustee or statutory substitute.
• The limitation periods split with the accounting regimes. The usual period is two years for adequately disclosed post-2020 matters and three years for legacy current or final accounts.
• Court approval is elective. Sending an accounting does not make it a judicially approved account; the trustee must choose the § 813.1(i) proceeding.

Common questions

Must a trustee give fair-market values for every asset?

The accounting states closing values to the extent feasible. For an asset without a readily available market value, the trustee may estimate or use a nominal carrying value and decides whether and how often to obtain a professional appraisal.

Can a beneficiary stop receiving annual accountings?

Yes. A qualified beneficiary may deliver a written waiver to the trustee and may later withdraw it in writing for future accountings. The withdrawal does not undo delivery choices or waivers for past periods.

What can a court do if the trustee does not account?

Under § 1001(a)–(c), the court may compel duties, order an accounting, require redress, suspend or remove the trustee, reduce or deny compensation, and grant other equitable relief. Section 706(a)–(c) also permits a qualified beneficiary, settlor, or cotrustee to request removal on the stated grounds.

Is a beneficiary's signed release always effective?

No. Section 1009 protects the trustee only when the consent, release, or ratification was not induced by improper conduct and the beneficiary knew the relevant rights and material facts. A self-dealing transaction must also be fair and reasonable.

Statutes and sources

• 760 ILCS 3/103(9), (28), (30), (38). Beneficiary classes and defined trust- accounting contents. Official Illinois statute (accessed August 9, 2026).
• 760 ILCS 3/105(a), (b)(10)–(12); 603(b)–(c). Mandatory/default split and revocable-settlor rules. Official Illinois statute (accessed August 9, 2026).
• 760 ILCS 3/109(a)–(e); 111(a), (b), (d)–(e), (g). Delivery and nonjudicial settlements. Official Illinois statute (accessed August 9, 2026).
• 760 ILCS 3/813.1(a)–(c), (g)–(i). Post-2020 annual, termination, vacancy, values, waiver, delivery presumption, and judicial approval. Official Illinois statute (accessed August 9, 2026).
• 760 ILCS 3/813.2(a)–(e). Legacy recipients, annual/final contents, disability representation, and nonmarket values. Official Illinois statute (accessed August 9, 2026).
• 760 ILCS 3/706(a)–(c); 1001(a)–(c). Removal and breach remedies. Official Illinois statute (accessed August 9, 2026).
• 760 ILCS 3/1005(a)–(c); 1009(a)–(b). Accounting-linked claim periods and consent, release, or ratification. Official Illinois statute (accessed August 9, 2026).