Yes, we believe a trustee may delegate certain powers to a third party, including by adding an authorized signer to a trust account, provided the trustee has been granted the authority to do so in the trust instrument — which we recommend confirming by requesting a Certification of Trust form. Additionally, if the Certification of Trust confirms that the trustee has this authority, we believe it would be permissible for an agent acting under a power of attorney (POA) for a trustee to act as an authorized signer if they have been granted such authority in a POA document.

Although the Illinois Trust Code generally prohibits trustees from delegating powers that involve “judgment and discretion,” it allows trustees to “delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances.” The Uniform Law Commission’s official commentary to the Uniform Trust Code notes that this language protects trustees “in making delegations appropriate to the facts and circumstances of the particular trust.”

Consequently, whether adding a non-trustee authorized signer would be considered an appropriate delegation of power is highly fact-specific, and we do not believe it is incumbent upon your bank to make this determination. Instead, we recommend requesting a Certification of Trust form to confirm that the trustee is allowed to add authorized signers and following the same procedures that you would use for adding authorized signers to your other accounts. A person, such as your bank, that acts in good faith reliance on a certification of trust is entitled to act as if the representations in the certification are true and is not liable to any person for actions with respect to the trust. In addition, any transaction that is entered into based on a certification of trust is enforceable as if the representations in the certification were correct.

Similarly, if a trustee appoints an agent under a POA to act as an authorized signer, we recommend requesting a Certification of Trust to confirm that the trustee is allowed to add authorized signers, as well as a copy of the POA document (such as the Illinois Short Form Power of Attorney) to confirm that it specifically grants the agent the authority to act as an authorized signer for the trust. Although the Illinois Statutory Short Form Power of Attorney for Property permits an agent acting under a POA to “exercise all powers with respect to financial institution transactions which the principal could if present and under no disability,” this general authorization does not apply to trust accounts subject to the Illinois Trust Code, “for which specific reference to the trust and a specific grant of authority to the agent to withdraw income or principal from such trust is required.”

The Illinois Trust Code also states that a trust settlor’s powers with respect to distribution of trust property may not be exercised by an agent under a POA unless expressly authorized by the power and not prohibited by the trust instrument. As a result, both the Certification of Trust and POA document should be reviewed to confirm an agent’s authority to act as an authorized signer for a trust account under a POA.

Additionally, we note that this guidance is a general discussion in response to a general question. An analysis of the law of trusts involving the powers and limitations of trustees and their agents can be highly fact-specific and depend on the specific issue, the provisions in the trust instrument, and, when appropriate, the activities listed in the POA for property document.

For resources related to our guidance, please see:

• Illinois Trust Code, 760 ILCS 3/1013(a) (“Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust. . . .”)

• Illinois Trust Code, 760 ILCS 3/807 (“Delegation by trustee.

(a) Except as provided in subsection (b), the trustee has a duty not to delegate to others the performance of any acts involving the exercise of judgment and discretion.

(b) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: (1) selecting an agent; (2) establishing the scope and terms of the delegation, consistent with the purposes of the trust and the trust instrument; and (3) periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.”)

• Uniform Trust Code, Official Commentary on Section 807, page 134 (“This section encourages and protects the trustee in making delegations appropriate to the facts and circumstances of the particular trust. Whether a particular function is delegable is based on whether it is a function that a prudent trustee might delegate under similar circumstances. For example, delegating some administrative and reporting duties might be prudent for a family trustee but unnecessary for a corporate trustee.”)

• Illinois Trust Code, 760 ILCS 3/1013(f) (“A person who acts in reliance upon a certification of trust without actual knowledge that the representations contained therein are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification. . . .”)

• Illinois Trust Code, 760 ILCS 3/1013(g) (“A person who in good faith enters into a transaction in reliance upon a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct.”)

• Illinois Power of Attorney Act, 755 ILCS 45/3-4(b) (“Financial institution transactions. The agent is authorized to: open, close, continue and control all accounts and deposits in any type of financial institution . . . deposit in and withdraw from and write checks on any financial institution account or deposit; and, in general, exercise all powers with respect to financial institution transactions which the principal could if present and under no disability. . . . This authorization shall not apply to accounts titled in the name of any trust subject to the provisions of the Illinois Trust Code, for which specific reference to the trust and a specific grant of authority to the agent to withdraw income or principal from such trust is required pursuant to Section 2-9 of the Illinois Power of Attorney Act and subsection (n) of this Section.”)

• Illinois Trust Code, 755 ILCS 45/2-9 (“An agent may not revoke or amend a trust revocable or amendable by the principal or require the trustee of any trust for the benefit of the principal to pay income or principal to the agent without specific authority and specific reference to the trust in the agency. . . .”)

• Illinois Trust Code, 760 ILCS 3/602(e) (“A settlor’s powers with respect to revocation, amendment, or distribution of trust property may not be exercised by an agent under a power of attorney unless expressly authorized by the power and not prohibited by the trust instrument.”)