irrevocable trust question

[viking11]

What is the name of your state?What is the name of your state? Illinois

Doe's a beneficiary of a irrevocable trust held by a corporate trustee have any recourse for a 20% loss of principal. We are in litigation currently to have it converted to a total return trust with a payout of 4%. The bank that is the Trustee has lost over $150,000 thru investment. any help would be appreciated

 

[seniorjudge]

What is the name of your state?What is the name of your state? Illinois

Doe's a beneficiary of a irrevocable trust held by a corporate trustee have any recourse for a 20% loss of principal. We are in litigation currently to have it converted to a total return trust with a payout of 4%. The bank that is the Trustee has lost over $150,000 thru investment. any help would be appreciated

Only a court can tell you if the trustee abided by the standard of care imposed upon it by the terms of the trust.

 

[Dandy Don]

What was the nature of the investment--stock market or what?

 

[viking11]

right now, 40% is in SEI Small Cap mututal funds and 30% SEI Mid Cap fund.
in remembering our quarterly stataments, it seems to change every month but always with SEI

 

[dmode101]

The test is the "prudent investor rule". It's no a results test, but a procedure test. The 20% loss of principal in itself odesn't mean much. If they didn't actively manage or monitor the investments then there may be liability.

Total Return Trust can be a good idea. That's a fairly new (and complicated) statute in Illinois.