Public Act 095-0605
 		





SB0531 Enrolled
LRB095 04908 AJO 24974 b






    AN ACT concerning trusts.

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

 
    Section 5. The Trusts and Trustees Act is amended  by 
changing Section 4 and adding Section 4.26 as follows:
 



    (760 ILCS 5/4)  (from Ch. 17, par. 1654)


    Sec. 4. Powers of
Trustee.
The trustee has the powers 
specified in the Sections following this Section and preceding 
Section 5
4.01 through 4.25.

(Source: P.A. 88-367.)


 
    (760 ILCS 5/4.26 new)

    Sec. 4.26. Small trust termination. To terminate the trust 
and distribute the trust estate, including principal and 
accrued and undistributed income, if the trustee determines, in 
the trustee's sole discretion with the consent of the 
recipients, that the market value of a trust is less than 
$100,000 and that the costs of continuing the trust will 
substantially impair accomplishment of the purpose of the 
trust.
    Distribution shall be made to the persons then entitled to 
receive or eligible to have the benefit of the income from the 
trust in the proportions in which they are entitled thereto, or 
if their interests are indefinite, to those persons per stirpes 
if they have a common ancestor, or if not, then in equal 
shares. The trustee shall give notice to the persons at least 
30 days prior to the effective date of the termination.
    If a particular trustee is an income beneficiary of the 
trust or is legally obligated to an income beneficiary, then 
that particular trustee may not participate as a trustee in the 
exercise of this termination power; provided, however, that if 
the trust has one or more co-trustees who are not so 
disqualified from participating, the co-trustee or co-trustees 
may exercise this power.
    This Section shall not apply to the extent that it would 
cause a trust otherwise qualifying for a federal or State tax 
benefit or other benefit not to so qualify, nor shall it apply 
to trusts for domestic or pet animals.
    The provisions of this amendatory Act of the 95th General 
Assembly apply to all trusts created before, on, or after its 
effective date.




Effective Date:  6/1/2008