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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB1494
Introduced 2/23/2005, by Sen. Kirk W. Dillard SYNOPSIS AS INTRODUCED:
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760 ILCS 5/4 |
from Ch. 17, par. 1654 |
760 ILCS 5/4.26 new |
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Amends the Trusts and Trustees Act. Permits a trustee to terminate a trust if it has a market value of less than $100,000 and the costs of continuing the trust will substantially impair the purpose of the trust. Outlines how distribution shall be made. Provides that a trustee who is an income beneficiary may not participate as a trustee in the exercise of termination power. Provides that the trustee shall give notice to the persons entitled to distribution at least 30 days prior to the effective date of the termination of the trust. Provides that the provisions of the Section concerning small trust termination shall not apply to trusts for domestic or pet animals. Effective immediately.
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A BILL FOR
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SB1494 |
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LRB094 10962 LCB 41550 b |
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| AN ACT concerning trusts.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Trusts and Trustees Act is amended by |
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| changing Section 4 and adding Section 4.26 as follows:
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| (760 ILCS 5/4) (from Ch. 17, par. 1654)
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| Sec. 4. Powers of
Trustee.
The trustee has the powers |
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| specified in the Sections following this Section and preceding |
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| Section 5
4.01 through 4.25.
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| (Source: P.A. 88-367.)
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| (760 ILCS 5/4.26 new)
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| Sec. 4.26. Small trust termination. To terminate the trust |
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| and distribute the trust estate, including principal and |
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| accrued and undistributed income, if the trustee determines, in |
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| the trustee's sole discretion, that the market value of a trust |
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| is less than $100,000 and that the costs of continuing the |
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| trust will substantially impair accomplishment of the purpose |
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| of the trust. |
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| Distribution shall be made to the persons then entitled to |
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| receive or eligible to have the benefit of the income from the |
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| trust in the proportions in which they are entitled thereto, or |
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| if their interests are indefinite, to those persons per stirpes |
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| if they have a common ancestor, or if not, then in equal |
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| shares. The trustee shall give notice to the persons at least |
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| 30 days prior to the effective date of the termination. |
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| If a particular trustee is an income beneficiary of the |
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| trust or is legally obligated to an income beneficiary, then |
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| that particular trustee may not participate as a trustee in the |
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| exercise of this termination power; provided, however, that if |
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| the trust has one or more co-trustees who are not so |
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| disqualified from participating, the co-trustee or co-trustees |