Illinois General Assembly - Full Text of Public Act 096-1151
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Public Act 096-1151


 

Public Act 1151 96TH GENERAL ASSEMBLY



 


 
Public Act 096-1151
 
HB5469 EnrolledLRB096 18124 MJR 33499 b

    AN ACT concerning financial regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    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:
 
    (205 ILCS 625/2)  (from Ch. 17, par. 2132)
    Sec. 2. Definitions. As used in this Act, the following
words have the meanings ascribed to them as set forth herein:
    (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
Savings Bank Act, or any credit union as defined in Section 1.1
of the Illinois Credit Union Act, and similar federal
institutions.
    (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.
(Source: P.A. 92-285, eff. 1-1-02.)
 
    (205 ILCS 625/3)  (from Ch. 17, par. 2133)
    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
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:
    (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;
    (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;
    (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
    (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.
(Source: P.A. 84-461.)
 
    (205 ILCS 625/4)  (from Ch. 17, par. 2134)
    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
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
account and unless otherwise agreed in writing between the
person or persons opening or holding the account and the
institution:
    (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;
    (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
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
withdrawn; and
    (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.
(Source: P.A. 92-285, eff. 1-1-02.)
 
    (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)
    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.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/21/2010