Trustee and Beneficiary: Who Does What, and Why Does It Matter?

 Posted on November 13, 2026 in Estate Planning

When a parent's trust takes effect after their death, adult children often end up on different sides of the same document. One sibling may manage accounts and make decisions, while others may wait for updates and wonder what is happening. In Kendall County, where family farms and other assets may be passed to the next generations through trusts, these arrangements can either carry out a parent's plan smoothly or strain family relationships for years.

A trustee is the person or company that manages the property held in a trust and follows the trust's written instructions. A beneficiary is a person who receives money, property, or other benefits from the trust. The trustee does the work and carries the legal responsibility, while the beneficiary has the right to receive what the trust provides and to get information about how it is being handled. Illinois law holds trustees to strict standards, and beneficiaries who know those standards may be able to spot problems early. An attorney who assists families with trusts can help ensure that all of these issues will be handled correctly.

Who Are the People Involved in a Trust?

Most trusts involve three roles. Sometimes one person fills more than one role, especially while the trust's creator is still alive.

The Grantor

The grantor is the person who creates a trust and funds it by placing property into it. This person may also be called the settlor. In a revocable living trust, the grantor usually serves as the first trustee, and they can change the trust at any time. Once the grantor dies, the trust typically becomes irrevocable, and its terms cannot be changed after that point.

The Trustee

The trustee is the manager. After the grantor dies or can no longer handle their own affairs, a successor trustee named in the trust will take over. This might be an adult child, another relative, a trusted friend, or a bank or trust company.

The Beneficiaries

Some beneficiaries may receive distributions right away, such as when a surviving spouse receives income from a trust each year. Remainder beneficiaries will receive what is left later, such as children who inherit assets after the surviving spouse passes away.

What Duties Does a Trustee Have Under Illinois Law?

A trustee is a fiduciary. That means the trustee must act in the best interests of the beneficiaries rather than in their own interest. The Illinois Trust Code (760 ILCS 3) spells out what this looks like. A trustee generally has the following duties:

• The duty of loyalty, which means managing the trust only for the beneficiaries and avoiding deals that benefit the trustee personally.

• The duty of impartiality, which means treating all beneficiaries fairly according to the trust's terms.

• The duty of prudent administration, which means handling the trust with reasonable care, skill, and caution.

• The duty to keep trust property separate from the trustee's own money and to keep adequate records.

• The duty to invest trust assets wisely.

• The duty to keep beneficiaries informed and provide regular accountings.

What Must a Trustee Tell the Beneficiaries?

Communication is where many problems with trusts begin. Section 813.1 of the Illinois Trust Code sets out clear notice and reporting rules for most trusts.

Notice Within 90 Days

Within 90 days of a trust becoming irrevocable, or after a new trustee accepts the role, the trustee must notify each beneficiary that the trust exists. The notice must also explain the beneficiary's right to request a copy of the trust and whether they have a right to receive accountings. A new trustee must also share their name, address, and phone number within 90 days of accepting the job.

Annual Accountings

A trust accounting is a written report showing what the trust owns, what money came in, what money went out, and what was distributed. Illinois law requires a trustee to send an accounting once per year or more often to current beneficiaries and to people who are expected to be remainder beneficiaries. After all assets in a trust have been distributed, the trustee must send a final accounting to those receiving the remaining property.

A Copy of the Trust

If a beneficiary makes a reasonable request, the trustee must provide them with a copy of the trust document.

What Trustees Do Not Have to Do

A trustee does not have to tell beneficiaries in advance before selling an asset or making an investment. However, when a trustee provides beneficiaries with information about major decisions, like listing the family home for sale, this may help to avoid disputes.

What Records Should a Trustee Keep?

Good records can protect both the trustee and the beneficiaries. A trustee who cannot explain where money went may face personal liability, even if they did nothing dishonest.

A trustee should open a separate bank account in the trust's name, and they should never mix trust money with their own personal funds. They should keep receipts for every expense, bank and investment statements, and proof of every distribution. Records should also show the value of trust property when the trustee took over, including appraisals for real estate or farmland. Trustees will also need to file a federal trust income tax return and an Illinois tax return.

Trustees may receive reasonable pay unless the trust says otherwise, but they must notify qualified beneficiaries in advance of any changes to how that pay is calculated. Tracking hours and tasks can help show that a trustee’s fees are fair.

What Should Beneficiaries Know About Trust Administration?

Trust administration is the process of managing and eventually distributing trust property. Gathering assets, paying final bills and taxes, selling real estate, and preparing accountings can take many months, and some trusts are designed to last for decades.

A beneficiary has the right to receive required notices, request a copy of the trust, and review accountings. If the trust gives the trustee the discretion to decide whether and when to make certain distributions, the trustee must still use that freedom in good faith and in line with the trust's purpose.

A beneficiary can give up their right to receive accountings by signing a written waiver. However, they should think carefully before doing so. Accountings are often the best way to catch errors.

How Can Misunderstandings Related to Trusts Lead to Family Conflict?

Most trust disputes do not start with outright theft. They start with silence, assumptions, or mismatched expectations. Common sources of conflict include:

• A sibling trustee who goes months without sharing updates, leaving others to assume the worst.

• Disagreements over whether to sell or keep family land.

• A family member living in a parent's house without paying rent or having a clear agreement.

• Trustee fees that others believe are unfair or excessive.

• Discretionary distributions that look like favoritism, such as helping one child with tuition but not another.

When a beneficiary feels shut out, a simple question can turn into a lawsuit. The court costs involved in handling these disputes through litigation will often come out of the trust, which will reduce what the beneficiaries will eventually receive.

How to Make Sure a Trust Is Managed Correctly

Both trustees and beneficiaries can take steps to keep trust administration on track and protect the people the trust was meant to help.

Steps for Trustees

It is important for a trustee to read the entire trust document and get legal guidance before making major decisions. They should send required notices on time, and they should not wait for annual accountings to share important news. If disagreements are expected, a trustee can ask a court to approve their accounting.

Steps for Beneficiaries

A beneficiary can request a copy of the trust and read it closely. They can review each accounting and write down any questions they may have. If concerns are not resolved, Illinois courts can order a trustee to provide an accounting, require a trustee to repay losses caused by a breach of fiduciary duty, or remove a trustee. Time limits apply in claims against trustees, and those limits can begin running once a beneficiary receives an accounting, so waiting too long may prevent them from acting.

Steps for a Person Who Creates a Trust

When building an estate plan, a person can choose a trustee based on their organizational skills, honesty, and their ability to work with family members. They may want to consider co-trustees or a professional trustee if relationships between family members have become strained, and they can provide clear instructions about family property so a trustee will not be left guessing.

Contact Our Kendall County Trusts Lawyers

Whether you have just been named a trustee, you are a beneficiary with unanswered questions, or you are creating a trust to protect your own family, clear guidance can make a meaningful difference in how the trust will be managed. At Gateville Law Firm, our Minooka trust administration attorneys can explain your rights and responsibilities under Illinois law, and we can help you find solutions that will avoid disputes between family members. Call 630-780-1034 today to schedule a consultation.