What Must an Illinois Trustee Include in an Annual Trust Accounting?

Your Right to See Where the Trust Money Goes

• An Illinois trust accounting must cover several items:

  • trust property, liabilities, receipts, and disbursements, including what the trustee paid itself

  • end-of-period asset values, to the extent feasible

  • any other material facts about how the trust is being administered (760 ILCS 3/103(38))

• Trusts that became irrevocable on or after January 1, 2020 have two annual accounting duties (760 ILCS 3/813.1):

  • The trustee must send current beneficiaries an accounting at least once a year. The trust document cannot waive this duty.

  • Unless the trust document says otherwise, the trustee must also send annual accountings to presumptive remainder beneficiaries.

• Older trusts are governed by 760 ILCS 3/813.2. That section requires an annual account to income beneficiaries and a final account when the trust ends.

• Deadlines are short. For post-2020 trusts, a claim based on a matter disclosed in writing can be barred two years after the information is furnished (760 ILCS 3/1005).

• If an accounting is missing or incomplete, the usual first step is to issue a written demand citing the statute. Courts can compel an accounting and order other relief.

In Illinois, a trustee’s annual trust accounting generally has to cover the trust property, liabilities, all receipts and disbursements, the trustee’s compensation, asset values at the end of the period (to the extent feasible), and any other material facts about how the trust is being run. These rules come from the Illinois Trust Code, which defines “trust accounting” in 760 ILCS 3/103(38) and sets out the duty to account in 760 ILCS 3/813.1 and 760 ILCS 3/813.2. If your trustee sends a one-page summary, sends nothing, or sends numbers that don’t add up, you may have the right to ask for more.

If you think a trustee is holding back information or mismanaging trust assets, help is available. The trust and estate litigation team at King & Jones represents beneficiaries in accounting disputes and fiduciary breach claims. Call 312-372-4142 or contact us now to talk about your situation in confidence.

What Must an Illinois Trust Accounting Include?

The Illinois Trust Code spells out the contents of a trust accounting in its definitions section. Under 760 ILCS 3/103(38), a “trust accounting” is one or more written communications from the trustee that together cover the accounting year. The statutory definition of trust accounting generally requires three categories of information.

• Property, liabilities, receipts, and disbursements: This includes the amount of the trustee’s compensation (760 ILCS 3/103(38)(A)).

• End-of-period asset values: The value of trust assets on hand at the close of the accounting period, to the extent feasible (760 ILCS 3/103(38)(B)).

• All other material facts: Any other material facts related to the trustee’s administration of the trust (760 ILCS 3/103(38)(C)).

A complete annual accounting has five parts: an asset list, a list of liabilities, a ledger of receipts and disbursements, a trustee compensation report, and closing values. Taken together, the documents should tell you what happened to the trust during the year.

The Trust Asset List and Valuations

The asset list shows what the trust owns, and the valuation shows what those holdings are worth. Publicly traded securities are easy to confirm. Closely held business interests, real estate, and other illiquid assets are harder. The “to the extent feasible” language in 760 ILCS 3/103(38)(B) gives trustees some room on hard-to-value assets, but it generally does not permit a trustee to omit those values without explanation.

Receipts, Disbursements, and Trustee Compensation

Problems often surface first in receipts and disbursements. Receipts include dividends, rent, interest, and sale proceeds. Disbursements include expenses, trustee/beneficiary distributions, and fees. The statute expressly requires disclosure of the trustee’s compensation, so you generally should be able to see what the trustee paid themselves.

💡 Pro Tip: Compare each year’s closing asset values with the next year’s opening values. An unexplained gap is worth asking about.

Who Receives a Trust Accounting, and How Often?

Under 760 ILCS 3/813.1(b)(2), a trustee generally must send a trust accounting at least once a year to every current beneficiary. Under the separate, unconditional 760 ILCS 3/813.1(b)(3), a trustee generally must also send a trust accounting at least once a year to all presumptive remainder beneficiaries, a duty that is not contingent on the beneficiary asking for it, though it can be waived or altered in the trust instrument. When the trust ends, 760 ILCS 3/813.1(b)(4) requires the trustee to send an accounting to each beneficiary entitled to a share of the residue. Under 760 ILCS 3/813.1(b)(5), the trustee may, in its discretion, also choose to give notice, information, accountings, reports, or a copy of the trust instrument to other beneficiaries not otherwise entitled to them.

The trustee has a duty to give notice of three things. Under 760 ILCS 3/813.1(b)(1), the trustee must inform beneficiaries the trust exists, that they have the right to request a copy of the trust instrument, and whether they have a right to receive or request trust accountings. You can read the Illinois duty to account provisions on the General Assembly’s website.

If a qualified beneficiary asks for the trust instrument, the trustee must promptly provide a complete copy. The exception is a trust instrument that limits disclosure to the portions setting out the terms in which that beneficiary has an interest.

Revocable trusts. While a trust is still revocable, the trustee’s duties generally run to the settlor (see 760 ILCS 3/603). As a result, beneficiaries typically have no right to accountings until the trust becomes irrevocable, which most often happens at the settlor’s death.

Beware of waivers. A qualified beneficiary can waive the right to receive accountings and other information by signing a written waiver and delivering it to the trustee (760 ILCS 3/813.1(g)). Before you sign anything a trustee sends you, make sure you understand what you are giving up.

Can the Trust Document Eliminate Your Right to an Accounting?

Often, it cannot. For trusts that became irrevocable after the Code’s effective date, 760 ILCS 3/105 makes the following rules mandatory, meaning the trust document cannot override them:

• the trustee’s duty to notify qualified beneficiaries (813.1(b)(1))

• the duty to provide accountings to current beneficiaries (813.1(b)(2))

• the duty to provide accountings to residuary beneficiaries at termination (813.1(b)(4))

• a qualified beneficiary’s right to request the relevant portions of the trust instrument

• the court’s power under 760 ILCS 3/708 to adjust trustee compensation set by the trust instrument that is unreasonably low or high

The duty to account to presumptive remainder beneficiaries is not on that list, so a trust document can eliminate it.

The Code also permits so-called “silent trusts.” In a silent trust, accountings and information can go to a designated representative for a limited period instead of to the beneficiary. Section 105 makes the rules governing designated representatives (760 ILCS 3/307) mandatory. If your trust has silent-trust provisions, have them reviewed carefully.

Accounting Requirements for Older Illinois Trusts

The trustee accounting requirements Illinois law imposes depend partly on when the trust became irrevocable. The Illinois Trust Code took effect on January 1, 2020. Section 813.1 governs trusts that became irrevocable on or after that date. Subject to Section 603, it also covers revocable trusts, except where the trustee accepted the trusteeship before that date. Older trusts generally fall under 760 ILCS 3/813.2.

Under 760 ILCS 3/813.2, the trustee of a pre-2020 trust has two main accounting duties:

• An annual account. At least once a year, the trustee must give a current account to the beneficiaries receiving or entitled to receive trust income. If there are none, the account goes to those eligible to benefit from the income. The account must show the receipts, disbursements, and inventory of the trust estate.

• A final account. When the trust ends, the trustee must give the beneficiaries entitled to distribution a final account. It covers the period since the last current account. The trustee must also make available copies of prior accounts those beneficiaries did not receive.

If a beneficiary is under a legal disability, the account generally goes to the beneficiary’s estate representative. If there is none, it goes to certain family members or a guardian.

For older trusts, the trust instrument may alter some of these requirements, so always check the trust terms.

Issue	760 ILCS 3/813.1	760 ILCS 3/813.2
Trusts covered	Irrevocable on or after January 1, 2020, and revocable trusts	Irrevocable before January 1, 2020, or revocable trusts whose trustee accepted before that date
Annual recipients	Current beneficiaries, and presumptive remainder beneficiaries (a default duty that applies automatically unless waived in the trust instrument)	Income beneficiaries, or those eligible for income
Required content	Defined by 760 ILCS 3/103(38)	Receipts, disbursements, and inventory
At termination	Accounting to residuary beneficiaries	Final account, plus earlier accounts not previously provided

Red Flags in an Annual Trust Accounting

Beneficiaries often bring us accountings that technically exist but say very little. A summary with no transaction detail, missing values for real estate or business interests, or vague “administrative expenses” can make it difficult to check what the trustee did. The requirement under 760 ILCS 3/103(38)(C) to disclose “all other material facts” may be relevant when key information is missing.

Other warning signs can include unexplained transfers to the trustee or the trustee’s relatives, compensation that rises sharply from year to year, and assets that disappear without a recorded sale. None of these automatically proves wrongdoing, but they justify a closer look with help from forensic accountants or valuation professionals. For more background on fiduciary duties, see our article on beneficiary rights in a high-profile estate.

💡 Pro Tip: Keep every accounting, cover letter, and email you receive from the trustee in one place. A complete paper trail can make tracing assets much easier if a dispute comes up later.

What to do When an Accounting Falls Short

Start by putting your request in writing and pointing to the specific statute. Cite 760 ILCS 3/813.1 or 760 ILCS 3/813.2, whichever applies, and list what is missing; create a record and sometimes get results. A written answer creates a record and sometimes resolves the problem – showing the trustee you’re paying attention can prevent future harm. If the trustee still refuses or gives incomplete answers, Illinois courts may be asked to compel an accounting, and in some circumstances to consider surcharge, removal, or recovery of misappropriated assets.

Timing also matters.

Under 760 ILCS 3/1005, timing depends on when the trust became irrevocable:

• Post-2020 trusts: A matter disclosed in writing in a trust accounting becomes binding unless suit is filed within two years after the information is furnished.

• Pre-2020 trusts: The period is three years after the account is furnished.

• Outer limit: Separately, most breach-of-trust claims must be brought within five years after certain events, such as the trust’s termination.

• Fraudulent concealment: Claims for fraudulent concealment follow their own time limit.

Because receiving an accounting can start the clock, talk with our Illinois trustee litigation lawyers about trust accounting requirements to review what you have received and explain where it may fall short.

Frequently Asked Questions

1. What must an Illinois trust accounting include?

Under 760 ILCS 3/103(38), the accounting must cover four things: (1) trust property, liabilities, receipts, and disbursements; (2) the trustee’s compensation; (3) asset values; (4) all other material facts about the trust’s administration.

2. How often must an Illinois trustee provide an accounting?

Generally, at least once a year, under both 760 ILCS 3/813.1(b)(2) and 760 ILCS 3/813.2(b). Additional duties may apply when the trust ends.

3. Am I entitled to an accounting as a remainder beneficiary?

For current beneficiaries of trusts that became irrevocable after January 1, 2020, generally no. Section 105 makes that duty mandatory. A trust document can, however, waive accountings to presumptive remainder beneficiaries, and silent-trust provisions can redirect information to a designated representative for a limited period.

4. Can the trust document eliminate my right to an accounting?

In many cases, it cannot. Under 760 ILCS 3/105, certain accounting duties are mandatory for trusts that became irrevocable on or after the Code took effect, although exceptions may apply.

5. What if the trustee’s compensation seems excessive?

The accounting must disclose the trustee’s compensation. Under 760 ILCS 3/708(b), courts may adjust trustee compensation that is unreasonably high or low. If the instrument is silent, the trustee is entitled only to reasonable compensation.

6. How long do I have to challenge a trust accounting in Illinois?

For trusts that became irrevocable after January 1, 2020, generally two years after the information is furnished. For older trusts, generally three years. Other limits and exceptions can apply, so get advice early.

Protecting Your Interest in an Illinois Trust

Trustee accounting requirements Illinois law imposes give beneficiaries a real way to hold trustees accountable. The Illinois Trust Code generally requires annual written accountings showing assets, liabilities, receipts, disbursements, compensation, and other material facts. Incomplete or missing accountings may point to deeper problems.

If your trustee’s accounting leaves you with more questions than answers, you don’t have to figure it out alone. King & Jones represents beneficiaries in trust accounting and fiduciary disputes. Call 312-372-4142 or schedule a confidential consultation today.

Disclaimer: This content is for informational purposes only and is not legal advice. Every case is unique, and results may vary. Consult an attorney about your specific circumstances.