(760 ILCS 15/12.1) (from Ch. 30, par. 512.1)
Sec. 12.1.
Employment related periodic payments.
(a) Except as provided in subsection (b), if any part of the principal
consists of the right to receive periodic payments under an employment
related contract or plan or an individual retirement account or annuity,
the receipts therefrom shall be allocated to principal.
(b) The receipts from any part of the principal consisting of the right
to receive periodic payments under an employment related contract or plan
or an individual retirement account or annuity shall be allocated to income
(i) to the extent designated by the payor as current income for accounting
purposes or (ii) if there is no designation by the payor and if the income
is directed by the instrument to be paid to the surviving spouse of the
participant under the contract or plan or of the owner of the account or
annuity, to the extent of the minimum amount necessary each year to qualify
the part in full for the federal estate tax marital deduction on the basis
of the interest rate generally applicable for the valuation of annuities at
the death of the participant or owner (or, if less, the entire receipts
from the part for the year).
(Source: P.A. 87-714.)
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