SB1621eng 96TH GENERAL ASSEMBLY

SB1621 Engrossed LRB096 08480 MJR 18600 b

AN ACT concerning financial regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Trust and Payable on Death Accounts Act is amended by changing Sections 3 and 4 as follows:

(205 ILCS 625/3) (from Ch. 17, par. 2133)

Sec. 3. Trust Account Incidents. If one or more persons opening or holding an account sign an agreement with the institution providing that the account shall be held in the name of a person or persons designated as trustee or trustees for one or more persons designated as a beneficiary or beneficiaries, the account and any balance therein which exists from time to time shall be held as a trust account and unless otherwise agreed in writing between the person or persons opening or holding the account and the institution:

(a) If two or more persons are designated trustees of the account, as between them they shall hold the account and all balances therein which exist from time to time as joint tenants with right of survivorship and not as tenants in common;

(b) Any trustee during his or her lifetime may change any of the designated beneficiaries without the knowledge or consent of the other trustees or the beneficiaries by a written instrument accepted by the institution;

(c) Any trustee may make additional deposits to and withdraw any part or all of the account at any time without the knowledge or consent of the other trustees or the beneficiaries, subject to the bylaws and regulations of the institution, and all withdrawals shall constitute a revocation of the agreement as to the amount withdrawn; and

(d) Upon the death of the last surviving trustee the person designated as the beneficiary (i) who is then living, if the beneficiary is a natural person, or (ii) that maintains a lawful existence under the state or federal authority pursuant to which it was organized, if the beneficiary is an organization and not a natural person, shall be the sole holder of the account, unless more than one beneficiary is named and is then living or maintains a lawful existence in which case said beneficiaries shall hold the account in equal shares as tenants in common. If no beneficiary is then living or maintains a lawful existence, the proceeds shall vest in the estate of the last surviving trustee.

(Source: P.A. 84-461.)

(205 ILCS 625/4) (from Ch. 17, par. 2134)

Sec. 4. Payable on Death Account Incidents. If one or more persons opening or holding an account sign an agreement with the institution providing that on the death of the last surviving person designated as holder the account shall be paid to or held by another person or persons, the account, and any balance therein which exists from time to time, shall be held as a payment on death account and unless otherwise agreed in writing between the person or persons opening or holding the account and the institution:

(a) Any holder during his or her lifetime may change any of the designated persons to own the account at the death of the last surviving holder without the knowledge or consent of any other holder or the designated persons by a written instrument accepted by the institution;

(b) Any holder may make additional deposits to and withdraw any part or all of the account at any time without the knowledge or consent of any other holder or the designated person or persons to own the account at the death of the last surviving holder, subject to the bylaws and regulations of the institution, and all withdrawals shall constitute a revocation of the agreement as to the amount withdrawn; and

(c) Upon the death of the last surviving holder of the account (i), the person so designated to be the owner of the account who is then living, if the beneficiary is a natural person, or (ii) that maintains a lawful existence under the state or federal authority pursuant to which it was organized, if the beneficiary is an organization and not a natural person, shall be the sole owner of the account, unless more than one person is so designated and is then living or maintains a lawful existence in which case those persons shall hold the account in equal shares as tenants in common with no right of survivorship as between those persons. If no person designated as the owner of the account on the death of the last surviving holder is then living or maintains a lawful existence, the proceeds shall vest in the estate of the last surviving holder of the account.

(Source: P.A. 92-285, eff. 1-1-02.)

Section 99. Effective date. This Act takes effect upon becoming law.