Being named as a trustee is an honor—but it also comes with serious legal responsibilities. From the moment you begin acting, you are held to fiduciary standards under Illinois law.
Many trustees are surprised to learn that even well-intentioned mistakes can lead to personal liability. The key is getting the process right from the very beginning.
Your First Steps Matter
If you have just been named or are about to serve as trustee, you should:
- Locate and review the trust agreement in full
- Identify all trust assets and how they are titled
- Determine whether the trust is now irrevocable
- Open a separate trust bank account (if appropriate)
- Begin maintaining detailed records of all actions and transactions
- Avoid making distributions until you understand the governing standards
Acting too quickly—or without a clear understanding of your role—can create significant issues down the line.
Understand Your Duties Before You Act
As a trustee in Illinois, you are subject to fiduciary duties, including:
- A duty of loyalty to the beneficiaries
- A duty to act prudently in managing trust assets
- A duty to keep beneficiaries reasonably informed
- A duty to follow the terms of the trust
These duties are not optional—and they are closely scrutinized if disputes arise.
Avoid Common Trustee Mistakes
In my experience, the most common issues arise early in the administration process:
- Failing to properly identify and marshal trust assets
- Making distributions without understanding the applicable standard
- Not communicating adequately with beneficiaries
- Commingling trust assets with personal funds
- Failing to keep proper records or accountings
These mistakes are avoidable—but only if the trustee approaches the role with the right guidance from the outset.
Do Not Take on This Role Alone
Serving as a trustee does not mean you are expected to navigate everything by yourself. In fact, one of the most prudent decisions a trustee can make is to seek experienced legal counsel early.
I regularly advise trustees at the beginning of their service—helping them understand their obligations, implement proper procedures, and avoid costly missteps.
Speak With Me Before You Take the Next Step
I offer a free initial consultation to help you understand your responsibilities as a trustee and how to fulfill them properly.
If you have recently been named as a trustee—or expect to serve—I encourage you to reach out before taking further action.
Getting the process right from the beginning can protect you, the trust, and the beneficiaries you are serving.
Contact
Kevin M. Williams
Nisen and Elliott, LLC
kwilliams@nisen.com
(312) 696-2542