For purposes of a living trust subject to Illinois law how is an income beneficiary defined?

In the context of a living trust subject to Illinois law, an income beneficiary is typically defined as a person or entity entitled to receive income generated by the assets held within the trust. The income beneficiary receives distributions from the trust’s earnings, such as interest, dividends, rents, or other types of income generated by the trust’s investments or assets.

The specific definition of an income beneficiary and the rights associated with that status can vary depending on the terms outlined in the trust agreement or the provisions of Illinois trust law. Typically, the trust document will specify how income is defined and distributed, as well as any conditions or restrictions placed on the income beneficiary’s rights.

In many cases, the trust agreement will distinguish between income beneficiaries and remainder beneficiaries. Income beneficiaries receive income generated by the trust during their lifetime or for a specified period, while remainder beneficiaries are entitled to the principal or remaining assets of the trust after the income interest terminates.

It’s important for trustees and beneficiaries to carefully review the terms of the trust agreement and consult with legal professionals familiar with Illinois trust law to understand the rights and responsibilities associated with being an income beneficiary.