Senate Sponsors: DILLARD. House Sponsors: BEAUBIEN Short description: TRUSTS-TOTAL RETURN TRUST Synopsis of Bill as introduced: Amends the Trusts and Trustees Act. Makes technical changes in a Section concerning the Act's short title. SENATE AMENDMENT NO. 1. Deletes reference to: 760 ILCS 5/1 Adds reference to: 760 ILCS 5/5.3 new Deletes everything. Amends the Trusts and Trustees Act. Provides that a trustee may convert a trust into a total return trust if specified conditions apply. Provides that a trustee may petition a court to order the conversion to a total return trust under certain circumstances. Provides that a beneficiary may request a trustee to convert to a total return trust and, if the trustee declines or fails to act within a reasonable time after receiving a written request to do so, the beneficiary may petition the court to order the conversion. Provides that a court shall order conversion to a total return trust if the court determines that the conversion will enable the trustee to better carry out the purposes of the trust. Contains provisions regarding: duties of a trustee; release of the power granted by the new provisions; contents of agreements; administration; allocation; actions that may be ordered by a court; restrictions concerning the distribution amount; tax matters; limitations on liability; applicability; and other matters. Effective immediately. HOUSE AMENDMENT NO. 1. Deletes everything and reinserts the provisions of the bill as amended with the following changes: makes various changes concerning conversion to a total return trust by a trustee; adds provisions concerning conversion to a total return trust by agreement; makes various changes concerning conversion to a total return trust by a court; provides that, while a trust is converted to a total return trust, the trustee shall pay to a beneficiary (in the case of an underpayment) and shall recover from a beneficiary (in the case of an overpayment) an amount equal to the difference between the amount properly payable and the amount actually paid, plus interest compounded annually at a rate equal to the distribution percentage in the year or years while the underpayment or overpayment exists; makes various changes concerning valuation of assets; adds provisions concerning the release by a trustee of the power granted by the new provisions if the trustee reasonably believes the release is in the best interests of the trust and its beneficiaries; makes changes concerning remedies; makes other changes. Effective immediately. HOUSE AMENDMENT NO. 2. Provides that a beneficiary may request the trustee to adjust the distribution percentage of a total return trust. Provides that, if the trustee declines or fails to act within 6 months after receiving a written request to do so, the beneficiary may petition the court to order the adjustment. Provides that the trustee may petition the court prospectively to adjust the distribution percentage of a total return trust if the trustee determines that the adjustment will enable the trustee to better carry out the purposes of the trust. Provides that a beneficiary may request the trustee to petition the court prospectively to adjust the distribution percentage of a total return trust. Provides that, if the trustee declines or fails to act within 6 months after receiving a written request to do so, the beneficiary may petition the court to order the adjustment. Makes corresponding changes elsewhere in the new provisions. In provisions setting forth actions that may be ordered by a court in a proceeding brought by a trustee, provides that nothing in those provisions limits the equitable powers of the court to grant other relief. Makes other changes. Last action on Bill: PUBLIC ACT.............................. 92-0838 Last action date: AUG-22-2002 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 1 END OF INQUIRY Full Text Bill Status