If the guardian’s intent is simply to move the funds to another trust account at a different financial institution, we do not believe that a court order would be necessary. The guardian would not be revoking the trust or distributing trust property in that case.

On the other hand, a court order is required before a guardian may make distributions from a trust or revoke or modify a trust. As stated in the new Illinois Trust Code (which becomes effective on January 1, 2020), a guardian of the person for a trustee “may not exercise a settlor’s powers with respect to revocation, amendment, or distribution of trust property unless ordered by the court supervising the guardianship.” The current Probate Act of 1975 also limits a court-appointed guardian’s authority with respect to a trust and requires a court order before modifying the trust.

It is not evident from your question whether this guardian is seeking to distribute the trust funds to another trust account or to a non-trust account at the other financial institution. However, assuming the guardian has the authority to close the trust account at your bank, in our view your bank is not obligated to inquire as to the appropriateness of the destination of the funds or their subsequent use after the account is closed, in which case we believe you may follow the guardian’s instructions to close the account.

For resources related to our guidance, please see:

• Illinois Trust Code (effective 1/1/2020), 760 ILCS 3/602(f) (“A guardian of the estate of the settlor, if any, or a guardian of the person of the settlor may not exercise a settlor's powers with respect to revocation, amendment, or distribution of trust property unless ordered by the court supervising the guardianship.”)

• Probate Act of 1975, 755 ILCS 5/11a-18(d) (“Adjudication of disability shall not revoke or otherwise terminate a trust which is revocable by the ward. A guardian of the estate shall have no authority to revoke a trust that is revocable by the ward . . . .”)

• Probate Act of 1975, 755 ILCS 5/11a-18(a-5) (“The probate court, upon petition of a guardian, other than the guardian of a minor, and after notice to all other persons interested as the court directs, may authorize the guardian to exercise any or all powers over the estate and business affairs of the ward that the ward could exercise if present and not under disability. The court may authorize the taking of an action or the application of funds not required for the ward's current and future maintenance and support in any manner approved by the court as being in keeping with the ward's wishes so far as they can be ascertained. . . . Actions or applications of funds may include, but shall not be limited to, the following: . . . . (11) modifying by means of codicil or trust amendment the terms of the ward’s will or any revocable trust created by the ward, as the court may consider advisable in light of changes in applicable tax laws.”)