(760 ILCS 3/1005)

Sec. 1005. Limitation on action against trustee.

(a) A beneficiary may not commence a proceeding against a trustee for breach of trust for any matter disclosed in writing by a trust accounting, or otherwise as provided in Sections 813.1, 813.2, and 1102, after the date on which the disclosure becomes binding upon the beneficiary as provided below:

(1) With respect to a trust that becomes irrevocable after the effective date of this Code and to trustees accepting appointment after the effective date of this Code, a matter disclosed in writing by a trust accounting or otherwise pursuant to Section 813.1 and Section 1102 is binding on each person who receives the information and each person represented as provided in Article 3 by a person who receives the information, and all of the person's respective successors, representatives, heirs, and assigns, unless an action against the trustee is instituted within 2 years after the date the information is furnished. A trust accounting or other communication adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the person entitled to receive the information knows of the potential claim or should have inquired into its existence.

(2) With respect to a trust that became irrevocable before the effective date of this Code or a trustee that accepted appointment before the effective date of this Code, a current account is binding on each beneficiary receiving the account and on the beneficiary's heirs and assigns unless an action against the trustee is instituted by the beneficiary or the beneficiary's heirs and assigns within 3 years after the date the current account is furnished, and a final accounting is binding on each beneficiary receiving the final accounting and all persons claiming by or through the beneficiary, unless an action against the trustee is instituted by the beneficiary or person claiming by or through him or her within 3 years after the date the final account is furnished. If the account is provided to the representative of the estate of the beneficiary or to a spouse, parent, adult child, or guardian of the person of the beneficiary, the account is binding on the beneficiary unless an action is instituted against the trustee by the representative of the estate of the beneficiary or by the spouse, parent, adult child, or guardian of the person to whom the account is furnished within 3 years after the date it is furnished.

(3) Notwithstanding paragraphs (1) and (2), with respect to trust estates that terminated and were distributed 10 years or less before January 1, 1988, the final account furnished to the beneficiaries entitled to distribution of the trust estate is binding on the beneficiaries receiving the final account, and all persons claiming by or through them, unless an action against the trustee is instituted by the beneficiary or person claiming by or through him or her within 5 years after January 1, 1988 or within 10 years after the date the final account was furnished, whichever is longer.

(4) Notwithstanding paragraphs (1), (2) and (3), with respect to trust estates that terminated and were distributed more than 10 years before January 1, 1988, the final account furnished to the beneficiaries entitled to distribution of the trust estate is binding on the beneficiaries receiving the final account, and all persons claiming by or through them, unless an action against the trustee is instituted by the beneficiary or person claiming by or through him or her within 2 years after January 1, 1988.

(b) Unless barred earlier under subsection (a), a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within 5 years after the first to occur of:

(1) the removal, resignation, or death of the trustee;

(2) the termination of the beneficiary's interest in the trust; or

(3) the termination of the trust.

(c) Notwithstanding any other provision of this Section, a beneficiary may bring any action against the trustee for fraudulent concealment within the time limit set forth in Section 13-215 of the Code of Civil Procedure.

(Source: P.A. 101-48, eff. 1-1-20; 102-558, eff. 8-20-21.)