(a) Interested persons, or their respective representatives determined after giving effect to Article 3, may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust as provided in this Section.
     (b) The following matters may be resolved by a nonjudicial settlement agreement:

Terms Used In Illinois Compiled Statutes 760 ILCS 3/111

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Continuance: Putting off of a hearing ot trial until a later time.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Fiduciary: A trustee, executor, or administrator.
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
  • Trustee: A person or institution holding and administering property in trust.

         (1) Validity, interpretation, or construction of the
    
terms of the trust.
        (2) Approval of a trustee's report or
    
accounting.
        (3) Exercise or nonexercise of any power by a
    
trustee.
        (4) The grant to a trustee of any necessary or
    
desirable administrative power if the grant does not conflict with a clear material purpose of the trust.
        (5) Questions relating to property or an
    
interest in property held by the trust if the resolution does not conflict with a clear material purpose of the trust.
        (6) Removal, appointment, or removal and
    
appointment of a trustee, trust advisor, investment advisor, distribution advisor, trust protector, or other holder, or committee of holders, of fiduciary or nonfiduciary powers, including without limitation designation of a plan of succession or procedure to determine successors to any such office.
        (7) Determination of a trustee's or other
    
fiduciary's compensation.
        (8) Transfer of a trust's principal place of
    
administration, including, without limitation, to change the law governing administration of the trust.
        (9) Liability or indemnification of a trustee
    
for an action relating to the trust.
        (10) Resolution of bona fide disputes related
    
to trust administration, investment, distribution, or other matters.
        (11) Modification of the terms of the trust
    
pertaining to the administration of the trust.
        (12) Determining whether the aggregate
    
interests of each beneficiary in severed trusts are substantially equivalent to the beneficiary's interests in the trusts before severance.
        (13) Termination of the trust, except that
    
court approval of the termination must be obtained in accordance with subsection (d), and the court must find that continuance of the trust is not necessary to achieve any clear material purpose of the trust. The court shall consider spendthrift provisions as a factor in making a decision under this subsection, but a spendthrift provision is not necessarily a material purpose of a trust, and the court is not precluded from modifying or terminating a trust because the trust instrument contains spendthrift provisions. Upon termination, the court shall order the distribution of the trust property as agreed by the parties to the agreement, or if the parties cannot agree, then as the court determines is equitable and consistent with the purposes of the trust.
    (c) If a trust contains a charitable interest, the parties to any proposed nonjudicial settlement agreement affecting the trust shall deliver to the Attorney General written notice of the proposed agreement at least 60 days before its effective date. The Bureau is not required to take action, but if it objects in a writing delivered to one or more of the parties before the proposed effective date, the agreement shall not take effect unless the parties obtain court approval.
     (d) Any beneficiary or other interested person may request the court to approve any part or all of a nonjudicial settlement agreement, including, without limitation, whether any representation is adequate and without material conflict of interest, if the petition for approval is filed within 60 days after the effective date of the agreement.
     (e) An agreement entered into in accordance with this Section, or a judicial proceeding pursued in accordance with this Section, is final and binding on the trustee, on all beneficiaries of the trust, both current and future, and on all other interested persons as if ordered by a court with competent jurisdiction over the trust, the trust property, and all parties in interest.
     (f) In the trustee's sole discretion, the trustee may, but is not required to, obtain and rely upon an opinion of counsel on any matter relevant to this Section, including, without limitation:
         (1) if required by this Section, that the agreement
    
proposed to be made in accordance with this Section does not conflict with a clear material purpose of the trust;
        (2) in the case of a trust termination, that
    
continuance of the trust is not necessary to achieve any clear material purpose of the trust;
        (3) that there is no material conflict of interest
    
between a representative and the person represented with respect to the particular question or dispute; and
        (4) that the representative and the person
    
represented have substantially similar interests with respect to the particular question or dispute.
    (g) This Section shall be construed as pertaining to the administration of a trust and shall be available to any trust that is administered in this State or that is governed by Illinois law with respect to the meaning and effect of its terms, except to the extent the trust instrument expressly prohibits the use of this Section by specific reference to this Section or a prior corresponding law. A provision in the trust instrument in the form: "Neither the provisions of Section 111 of the Illinois Trust Code nor any corresponding provision of future law may be used in the administration of this trust", or a similar provision demonstrating that intent, is sufficient to preclude the use of this Section.