(755 ILCS 5/4-5) (from Ch. 110 1/2, par. 4-5)
Sec. 4-5.
Insurance and death benefits payable to testamentary
trustee.) A person having the right to designate a
beneficiary of benefits payable under any insurance, annuity or endowment
contract (including any agreement issued or entered into by an insurance company
in connection therewith, supplemental thereto or in settlement thereof),
or the right to designate the beneficiary of benefits payable upon or
after the death of a person under any pension, retirement, death
benefit, deferred compensation, employment, agency, stock bonus or
profit sharing contract, plan, system or trust, may designate as a beneficiary
a trustee named or to be named in his will whether
or not the will is in existence at the time of the designation. The
benefits received by the trustee shall be held and disposed of as
part of the trust estate under the terms of the will. If no qualified
trustee makes claim to the benefits within 18 months after the death of
the decedent or if
within that period it is established that no trustee can qualify to
receive the benefits, payment shall be made to the representative of the estate
of the person making the designation, unless it is otherwise provided by
a beneficiary designation or by the policy or other controlling
agreement. The benefits received by the trustee shall not be subject to
claims or other charges enforceable against the estate or to estate or inheritance
taxes (including interest and penalties thereon) to any greater
extent than if the benefits were payable to a named beneficiary other than the estate
of the person making the designation, and in the case of benefits
which otherwise qualify for exclusion from the gross estate for federal
estate tax purposes, such benefits shall not be used by or for the
benefit of the estate of the decedent.
(Source: P.A. 79-328; 79-711; 79-1454.)
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