SB1494 Engrossed LRB094 10962 LCB 41550 b

1     AN ACT concerning trusts.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Trusts and Trustees Act is amended by
5 changing Section 4 and adding Section 4.26 as follows:
 
6     (760 ILCS 5/4)  (from Ch. 17, par. 1654)
7     Sec. 4. Powers of Trustee. The trustee has the powers
8 specified in the Sections following this Section and preceding
9 Section 5 4.01 through 4.25.
10 (Source: P.A. 88-367.)
 
11     (760 ILCS 5/4.26 new)
12     Sec. 4.26. Small trust termination. To terminate the trust
13 and distribute the trust estate, including principal and
14 accrued and undistributed income, if the trustee determines, in
15 the trustee's sole discretion, that the market value of a trust
16 is less than $100,000 and that the costs of continuing the
17 trust will substantially impair accomplishment of the purpose
18 of the trust.
19     Distribution shall be made to the persons then entitled to
20 receive or eligible to have the benefit of the income from the
21 trust in the proportions in which they are entitled thereto, or
22 if their interests are indefinite, to those persons per stirpes
23 if they have a common ancestor, or if not, then in equal
24 shares. The trustee shall give notice to the persons at least
25 30 days prior to the effective date of the termination.
26     If a particular trustee is an income beneficiary of the
27 trust or is legally obligated to an income beneficiary, then
28 that particular trustee may not participate as a trustee in the
29 exercise of this termination power; provided, however, that if
30 the trust has one or more co-trustees who are not so
31 disqualified from participating, the co-trustee or co-trustees

 

 

SB1494 Engrossed - 2 - LRB094 10962 LCB 41550 b

1 may exercise this power.
2     This Section shall not apply to the extent that it would
3 cause a trust otherwise qualifying for a federal or State tax
4 benefit or other benefit not to so qualify, nor shall it apply
5 to trusts for domestic or pet animals.
6     The provisions of this amendatory Act of the 94th General
7 Assembly apply to all trusts created before, on, or after its
8 effective date.
 
9     Section 99. Effective date. This Act takes effect upon
10 becoming law.