Legal Question in Wills and Trusts in Illinois
Trustee Limitations question
The following language was included in a trust: Trustee, subject only to the limitations expressly provided in this instrument, if any, in addition to the powers conferred upon the Trustee elsewhere in this instrument or by law, shall have the full power to invest, reinvest, retain, sell, exchange, lease, mortgage or pledge any or all of the trust property as the the trustee deems proper, irrespective of the rules of law...
I am not sure what ''irrespective of the rules of law'' means. Does this mean that the trustee can do whatever she wants even if a statute says she can't? It seems to contradict the statement ''by law''.
1 Answer from Attorneys
Re: Trustee Limitations question
Such language would never be interpreted to allow the trustee to do anything illegal with trust assets. In addition, the trustee has a fiduciary duty by law to protect the trust assets for the benefit of the trust's beneficiaries.
That said, there may be laws, case law or statutory, depending on the state law that governs the trust (a trust is always written pursuant to the laws of a given state), that require the trustee to invest assets in a certain way. Sometimes, language in a trust will direct the trustee to invest in certain types of assets even though the laws governing the trust may require the trustee to limit or avoid investment altogether in risky or non-diversified assets.
You need to have an attorney review the trust in its entirety in order to give you an appropriate answer to your question. Taking a paragraph of a trust out of context will not give you a complete (or possibly even a correct) answer.
Let me know if I can assist.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
