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| Public Act 096-1151 | ||||
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AN ACT concerning financial regulation.
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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 Illinois Trust and Payable on Death Accounts | ||||
Act is amended by changing Sections 2, 3, and 4 and by adding | ||||
Sections 10 and 15 as follows:
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(205 ILCS 625/2) (from Ch. 17, par. 2132)
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Sec. 2. Definitions. As used in this Act, the following | ||||
words have
the meanings ascribed to them as set forth herein:
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(a) "Institution" includes any bank as defined in Section 2 | ||||
of the Illinois
Banking Act, any
association
as defined in | ||||
Section 1-10.03 of the Illinois Savings and Loan Act,
any | ||||
insured savings bank as defined in Section 1007.75 of the
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Savings Bank Act,
or any credit union as defined in
Section 1.1 | ||||
of the Illinois Credit Union Act, and similar federal | ||||
institutions.
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(b) "Account" includes any account, deposit, certificate | ||||
of deposit,
withdrawable capital account or credit union share | ||||
in any institution. | ||||
(c) "Beneficiary" includes a natural person who is living, | ||||
a trust, a corporation, a charitable organization, or any other | ||||
entity that maintains a lawful existence under the state or | ||||
federal authority pursuant to which it was organized.
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(Source: P.A. 92-285, eff. 1-1-02.)
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(205 ILCS 625/3) (from Ch. 17, par. 2133)
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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
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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:
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(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;
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(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;
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(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
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(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 not a natural | ||
person, shall be the sole holder of the
account, unless more | ||
than one beneficiary is named and then living or in existence, | ||
in which
case said beneficiaries shall hold the account in | ||
equal shares as tenants
in common. If no beneficiary is then | ||
living or in existence, the proceeds shall vest in
the estate | ||
of the last surviving trustee.
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(Source: P.A. 84-461.)
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(205 ILCS 625/4) (from Ch. 17, par. 2134)
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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
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to or held by one or more designated beneficiaries another | ||
person or persons, the account, and any balance
therein which | ||
exists from time to time, shall be held as a payment on death
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account and unless otherwise agreed in writing between the | ||
person or
persons opening
or holding the account and the | ||
institution:
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(a) Any holder during his or her lifetime may change any of | ||
the
designated beneficiaries 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 beneficiaries | ||
persons
by a
written instrument
accepted by the institution;
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(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 | ||
beneficiaries person or persons to own the account at the death
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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
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withdrawn; and
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(c) Upon the death of the last surviving holder of the | ||
account, the
beneficiary person so
designated to be the owner | ||
of the account (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 not a natural person, shall be | ||
the
sole owner of the account, unless more than one beneficiary | ||
person is so designated and
then living or in existence, in | ||
which case those beneficiaries persons shall hold the account | ||
in
equal
shares as tenants in common with no right of | ||
survivorship as between those
beneficiaries persons. If no | ||
beneficiary person designated as the owner of the
account on | ||
the death of the last surviving holder is then living or in | ||
existence, the
proceeds shall vest
in the estate of the last | ||
surviving holder of the account.
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(Source: P.A. 92-285, eff. 1-1-02.)
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(205 ILCS 625/10 new) | ||
Sec. 10. Distribution by institution. Upon the death of the | ||
last surviving trustee or holder of the account, the | ||
institution that maintains the account shall distribute the | ||
proceeds to the beneficiary or beneficiaries designated in the | ||
agreement controlling the account without further liability. | ||
No institution, however, shall be required to distribute the | ||
account proceeds until the institution receives (i) legal | ||
evidence of death of all trustees or holders of the account, | ||
(ii) identification from each beneficiary then living, or | ||
business records evidencing the lawful existence and parties | ||
authorized to collect on behalf of each beneficiary not a | ||
natural person, and (iii) written direction from each | ||
beneficiary to close the account and distribute the proceeds in | ||
a form acceptable to the institution. If the institution, in | ||
its discretion, is unable to identify one or more | ||
beneficiaries, or cannot determine the lawful existence of any | ||
beneficiary, or cannot determine a party authorized to collect | ||
on behalf of any beneficiary, or if conflicting claims to the | ||
account are made by the beneficiaries or other interested | ||
parties, then the institution may refuse to distribute the | ||
proceeds, without liability to any beneficiary or other party, | ||
until the institution receives a determination of ownership by | ||
a court of appropriate jurisdiction. | ||
(205 ILCS 625/15 new)
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Sec. 15. Application of amendments. Section 10 and the | ||
other changes to this Act made by this amendatory Act of the | ||
96th General Assembly apply to all accounts subject to this Act | ||
regardless of the date of execution of the agreement | ||
controlling the account.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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