Legal Question in Wills and Trusts in Illinois

Re: House in Trust in Illinois

I don't know whether there is a right of contribution from all beneficiaries. I think not, but would have to look at it.

More importantly, the rents have to be split, and a periodic accounting has to be done. And, each beneficiary of an Illinois Land Trust has a veto under applicable Illinois case law when this person tries to sell and recover for the cost of the improvements. Unlike a tenancy in common, no beneficiary can sue for partition, which is a lawsuit to have a court-supervised sale of the property.

This is why I don't use them any more. If any of you are occupying the real estate, rent has to be paid to the other beneficiaries.

However, you all have to agree in order to sell the property. And, typical Illinois land trusts are written to expire every twenty years, but most banks try to automatically renew them.

From time to time, legislation has been proposed to attempt to rectify this situation. However, the land trustees (banks) like their annual fee, and have lobbied against correcting this result.

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