101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0705

 

Introduced , by Rep. Michael J. Madigan

 

SYNOPSIS AS INTRODUCED:
 
760 ILCS 5/4.26

    Amends the Trusts and Trustees Act. Makes a technical change in a Section concerning small trust termination.


LRB101 03732 LNS 48740 b

 

 

A BILL FOR

 

HB0705LRB101 03732 LNS 48740 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Trusts and Trustees Act is amended by
5changing Section 4.26 as follows:
 
6    (760 ILCS 5/4.26)
7    Sec. 4.26. Small trust termination. To terminate the the
8trust and distribute the trust estate, including principal and
9accrued and undistributed income, if the trustee determines, in
10the trustee's sole discretion with the consent of the
11recipients, that the market value of a trust is less than
12$100,000 and that the costs of continuing the trust will
13substantially impair accomplishment of the purpose of the
14trust.
15    Distribution shall be made to the persons then entitled to
16receive or eligible to have the benefit of the income from the
17trust in the proportions in which they are entitled thereto, or
18if their interests are indefinite, to those persons per stirpes
19if they have a common ancestor, or if not, then in equal
20shares. The trustee shall give notice to the persons at least
2130 days prior to the effective date of the termination.
22    If a particular trustee is an income beneficiary of the
23trust or is legally obligated to an income beneficiary, then

 

 

HB0705- 2 -LRB101 03732 LNS 48740 b

1that particular trustee may not participate as a trustee in the
2exercise of this termination power; provided, however, that if
3the trust has one or more co-trustees who are not so
4disqualified from participating, the co-trustee or co-trustees
5may exercise this power.
6    This Section shall not apply to the extent that it would
7cause a trust otherwise qualifying for a federal or State tax
8benefit or other benefit not to so qualify, nor shall it apply
9to trusts for domestic or pet animals.
10    The provisions of this amendatory Act of the 95th General
11Assembly apply to all trusts created before, on, or after its
12effective date.
13(Source: P.A. 95-605, eff. 6-1-08.)