SB0531 Engrossed

LRB095 04908 AJO 24974 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 
 


 






SB0531 Engrossed
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LRB095 04908 AJO 24974 b




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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 
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may exercise this power.
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    This Section shall not apply to the extent that it would 
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cause a trust otherwise qualifying for a federal or State tax 
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benefit or other benefit not to so qualify, nor shall it apply 
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to trusts for domestic or pet animals.
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    The provisions of this amendatory Act of the 95th General 
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Assembly apply to all trusts created before, on, or after its 
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effective date.