Illinois § 603

§ 603.

Settlor's powers; powers of withdrawal. (a) To the extent a trust is revocable by a settlor, and the settlor personally has capacity to revoke the trust, a trustee may follow a direction of the settlor that is contrary to the terms of the trust. To the extent a trust is revocable by a settlor in conjunction with a person other than a trustee or person holding an adverse interest, and the settlor and such other person personally have the capacity to revoke the trust, the trustee may follow a direction from the settlor and the other person holding the power to revoke even if the direction is contrary to the terms of the trust. (b) To the extent a trust is revocable by a settlor, and the settlor personally has capacity to revoke the trust, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor. (c) While a trust is revocable by a settlor but the settlor does not personally have the capacity to revoke the trust, the duties of the trustee are owed only to the settlor and current beneficiaries. If the settlor is a beneficiary, the settlor's interests as a beneficiary take priority over the interests of all other beneficiaries. (d) Except as provided in subsection (e), only the settlor, a representative of the settlor under Article 3 during the settlor's lifetime if the settlor is incapacitated, and the representative of the settlor's estate after the settlor's death have standing to contest, challenge, or bring any proceeding in any court regarding any action of the trustee of a revocable trust taken or not taken while the trust is revocable. (e) An individual who is or was a current beneficiary during the settlor's lifetime, a representative of such an individual under Article 3 or the representative of such individual's estate after the individual's death, has standing to contest, challenge, or bring any proceeding in any court regarding any action of the trustee of a revocable trust while the trust is revocable but the settlor does not personally have capacity to revoke the trust, but only to the extent the action of the trustee affects the interest of the individual as a current beneficiary of the trust during the lifetime of the settlor while the settlor does not personally have the capacity to revoke the trust. (f) The holder of a non-lapsing power of withdrawal, during the period the power may be exercised, has the rights of a settlor of a revocable trust to the extent of the property subject to the power. (Source: P.A. 101-48, eff. 1-1-20.)