Illinois General Assembly - Bill Status for HB4041
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 Bill Status of HB4041  97th General Assembly


Short Description:  FUNERAL TRUST FUNDS-TRUSTEES

House Sponsors
Rep. Dan Brady

Last Action
DateChamber Action
  1/8/2013HouseSession Sine Die

Statutes Amended In Order of Appearance
225 ILCS 45/1from Ch. 111 1/2, par. 73.101
225 ILCS 45/1a-1
225 ILCS 45/1bfrom Ch. 111 1/2, par. 73.101b
225 ILCS 45/2from Ch. 111 1/2, par. 73.102
225 ILCS 45/4a
815 ILCS 390/14from Ch. 21, par. 214
815 ILCS 390/15from Ch. 21, par. 215


Synopsis As Introduced
Amends the Illinois Funeral or Burial Funds Act. Restores a provision that allows persons holding less than $500,000 in trust funds to continue to act as the trustee after the funds are deposited. Provides that a pre-need contract must, if funded by a trust, clearly identify the trustee's name and address and the primary state or federal regulator of the trustee. Provides that a trustee may be the seller or provider of funeral services or merchandise if the seller holds sales of less than $500,000 in trust and deposits funds for which the seller is acting as trustee according in a certain manner. Provides that if a purchaser selects a trust arrangement to fund the pre-need contract, the trust must be maintained: (1) in a deposit account maintained by the seller as trustee in a bank, savings and loan association, savings bank, or credit union authorized to do business in Illinois in which accounts are insured by an agency of the federal government, (2) in a trust company authorized to do business in Illinois, or (3) with a corporate fiduciary as defined in the Corporate Fiduciary Act. Restores a provision that allows trust funds to be maintained in a financial institution located in a state adjoining Illinois if certain conditions are met. Provides that a trustee has a duty to manage the trust and, with respect to the investment of trust funds, shall exercise certain judgment and care. Provides that the trustee has a duty to manage and invest the assets pursuant to the Prudent Investor Rule under the Trusts and Trustees Act if the amount of funds to be entrusted exceeds $1,000,000. Amends the Illinois Pre-Need Cemetery Sales Act. Removes language that provides that the seller must retain a corporate fiduciary as an independent trustee for any amount of trust funds. Provides that a trust established under the Act must be maintained: (1) in a deposit account maintained by the seller as trustee in a bank, savings and loan association, or credit union authorized to do business in Illinois in which accounts are insured by an agency of the federal government, (2) in a trust company authorized to do business in Illinois, or (3) in an investment company authorized to do business in Illinois insured by the Securities Brokers Insurance Corporation.

Actions 
DateChamber Action
  1/23/2012HouseFiled with the Clerk by Rep. Dan Brady
  1/25/2012HouseFirst Reading
  1/25/2012HouseReferred to Rules Committee
  1/8/2013HouseSession Sine Die

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