HB 5023

Amends the Article in the Illinois Trust Code governing the duties and powers of trustees to provide a procedure for settlement of accounts. Provides that a trustee may obtain a settlement of its accounts if a trust terminates under the terms of the trust, a trust terminates early, a trustee resigns or is removed, or a trustee seeks discharge of an interim accounting period if the interest of one or more beneficiaries has terminated and the trust is continuing. Provides that a trustee who elects to use the new provisions must provide notice and a statement of information to the qualified beneficiaries of the trust and the successor trustee, if applicable, within a reasonable time after termination of the trust under its terms, the resignation or removal of the trustee, or the end of the period for which the trustee is seeking discharge. Provides that, if, after receiving the notice and trust information, a qualified beneficiary or any other party that received the notice and trust information objects to a disclosed act or omission, the qualified beneficiary must provide written notice of the objection to the trustee not later than 60 days after the notice was sent by the trustee. Provides that, if no written objection is provided in the 60-day time period, the information provided is considered approved by the recipient. Requires the trustee, in the case of a trust terminating under the terms of the trust or the trustee's resignation or removal, within a reasonable period of time following the expiration of the 60-day time period, to distribute the assets as provided in the trust or to the successor trustee. Provides that, if a qualified beneficiary gives the trustee a written objection within the applicable 60-day time period, the trustee or the qualified beneficiary may (i) submit the written objection to the court for resolution and charge the expense of commencing a proceeding to the trust or (ii) resolve the objection by a nonjudicial settlement agreement or other written agreement. Makes other changes.