Full Text of SB1621 96th General Assembly
SB1621 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB1621
Introduced 2/19/2009, by Sen. Terry Link SYNOPSIS AS INTRODUCED: |
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205 ILCS 625/3 |
from Ch. 17, par. 2133 |
205 ILCS 625/4 |
from Ch. 17, par. 2134 |
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Amends the Illinois Trust and Payable on Death Accounts Act. Provides that in order to take under the trust or payable on death account, a beneficiary that is not a natural person must be in lawful existence at the time of the death of the last surviving trustee. Effective immediately.
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A BILL FOR
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SB1621 |
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LRB096 08480 MJR 18600 b |
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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 | 5 |
| Act is amended by changing Sections 3 and 4 as follows:
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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 | 8 |
| opening or
holding an account sign an agreement with the | 9 |
| institution providing that
the account shall be held in the | 10 |
| name of a person or persons designated as
trustee or trustees | 11 |
| for one or more persons designated as a beneficiary or
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| beneficiaries, the account and any balance therein which exists | 13 |
| from time
to time shall be held as a trust account and unless | 14 |
| otherwise agreed in
writing between the person or persons | 15 |
| opening or holding the account and the institution:
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| (a) If two or more persons are designated trustees of the | 17 |
| account, as
between them they shall hold the account and all | 18 |
| balances therein which
exist from time to time as joint tenants | 19 |
| 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 | 21 |
| of the
designated beneficiaries without the knowledge or | 22 |
| consent of the other
trustees or the beneficiaries by a written | 23 |
| instrument accepted by the institution;
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LRB096 08480 MJR 18600 b |
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| (c) Any trustee may make additional deposits to and | 2 |
| withdraw any part or
all of the account at any time without the | 3 |
| knowledge or consent of the
other trustees or the | 4 |
| beneficiaries, subject to the bylaws and regulations
of the | 5 |
| institution, and all withdrawals shall constitute a revocation | 6 |
| of the
agreement as to the amount withdrawn; and
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| (d) Upon the death of the last surviving trustee the person | 8 |
| designated
as the beneficiary (i) who is then living , if the | 9 |
| beneficiary is a natural person, or (ii) that maintains a | 10 |
| lawful existence under the state or federal authority pursuant | 11 |
| to which it was organized, if the beneficiary is an | 12 |
| organization and not a natural person, shall be the sole holder | 13 |
| of the
account, unless more than one beneficiary is named and | 14 |
| is then living or maintains a lawful existence in which
case | 15 |
| said beneficiaries shall hold the account in equal shares as | 16 |
| tenants
in common. If no beneficiary is then living or | 17 |
| maintains a lawful existence , the proceeds shall vest in
the | 18 |
| 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 | 22 |
| persons opening
or
holding an account sign an agreement with | 23 |
| the institution
providing that
on the death of the
last | 24 |
| surviving person designated as holder the account shall be paid
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| to or held by another person or persons, the account, and any |
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LRB096 08480 MJR 18600 b |
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| balance
therein which exists from time to time, shall be held | 2 |
| as a payment on death
account and unless otherwise agreed in | 3 |
| writing between the person or
persons opening
or holding the | 4 |
| account and the institution:
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| (a) Any holder during his or her lifetime may change any of | 6 |
| the
designated persons to own the account at the death of the
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| last surviving holder without the
knowledge or consent of any | 8 |
| other holder or the designated persons
by a
written instrument
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| accepted by the institution;
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| (b) Any holder may make additional deposits to and withdraw | 11 |
| any
part or
all of the account at any time without the | 12 |
| knowledge or consent of any other
holder or the
designated | 13 |
| person or persons to own the account at the death
of the last | 14 |
| surviving holder,
subject to the bylaws and regulations of the | 15 |
| institution, and all
withdrawals shall constitute a revocation | 16 |
| of the agreement as to the amount
withdrawn; and
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| (c) Upon the death of the last surviving holder of the | 18 |
| account (i) , the
person so
designated to be the owner of the | 19 |
| account who is then living , if the beneficiary is a natural | 20 |
| person, or (ii) that maintains a lawful existence under the | 21 |
| state or federal authority pursuant to which it was organized, | 22 |
| if the beneficiary is an organization and not a natural person, | 23 |
| shall be the
sole owner of the account, unless more than one | 24 |
| person is so designated and
is then living or maintains a | 25 |
| lawful existence in which case those persons shall hold the | 26 |
| account in
equal
shares as tenants in common with no right of |
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LRB096 08480 MJR 18600 b |
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| survivorship as between those
persons. If no person designated | 2 |
| as the owner of the
account on the death of the last surviving | 3 |
| holder is then living or maintains a lawful existence , the
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| proceeds shall vest
in the estate of the last surviving holder | 5 |
| of the account.
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| (Source: P.A. 92-285, eff. 1-1-02.)
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| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.
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