Sen. Ira I. Silverstein

Filed: 3/20/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1309

2    AMENDMENT NO. ______. Amend Senate Bill 1309, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Probate Act of 1975 is amended by changing
6Sections 4-1 and 11a-18 as follows:
 
7    (755 ILCS 5/4-1)  (from Ch. 110 1/2, par. 4-1)
8    Sec. 4-1. Capacity of testator.)
9    (a) Every person who has attained the age of 18 years and
10is of sound mind and memory has power to bequeath by will the
11real and personal estate which he has at the time of his death.
12    (b) Except as stated herein, there is a rebuttable
13presumption that a will or codicil is void if it was executed
14or modified after the testator is adjudicated disabled under
15Article XIa of this Act. The rebuttable presumption is overcome
16by clear and convincing evidence that the testator had the

 

 

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1capacity to execute the will or codicil at the time the will or
2codicil was executed. The rebuttable presumption does not apply
3if the will or codicil was completed in compliance with
4subsection (d-5) of Section lla-18 of this Act. This subsection
5(b) applies only to wills or codicils executed or modified
6after the effective date of this amendatory Act of the 99th
7General Assembly.
8(Source: P.A. 80-808.)
 
9    (755 ILCS 5/11a-18)  (from Ch. 110 1/2, par. 11a-18)
10    Sec. 11a-18. Duties of the estate guardian.
11    (a) To the extent specified in the order establishing the
12guardianship, the guardian of the estate shall have the care,
13management and investment of the estate, shall manage the
14estate frugally and shall apply the income and principal of the
15estate so far as necessary for the comfort and suitable support
16and education of the ward, his minor and adult dependent
17children, and persons related by blood or marriage who are
18dependent upon or entitled to support from him, or for any
19other purpose which the court deems to be for the best
20interests of the ward, and the court may approve the making on
21behalf of the ward of such agreements as the court determines
22to be for the ward's best interests. The guardian may make
23disbursement of his ward's funds and estate directly to the
24ward or other distributee or in such other manner and in such
25amounts as the court directs. If the estate of a ward is

 

 

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1derived in whole or in part from payments of compensation,
2adjusted compensation, pension, insurance or other similar
3benefits made directly to the estate by the Veterans
4Administration, notice of the application for leave to invest
5or expend the ward's funds or estate, together with a copy of
6the petition and proposed order, shall be given to the
7Veterans' Administration Regional Office in this State at least
87 days before the hearing on the application.
9    (a-5) The probate court, upon petition of a guardian, other
10than the guardian of a minor, and after notice to all other
11persons interested as the court directs, may authorize the
12guardian to exercise any or all powers over the estate and
13business affairs of the ward that the ward could exercise if
14present and not under disability. The court may authorize the
15taking of an action or the application of funds not required
16for the ward's current and future maintenance and support in
17any manner approved by the court as being in keeping with the
18ward's wishes so far as they can be ascertained. The court must
19consider the permanence of the ward's disabling condition and
20the natural objects of the ward's bounty. In ascertaining and
21carrying out the ward's wishes the court may consider, but
22shall not be limited to, minimization of State or federal
23income, estate, or inheritance taxes; and providing gifts to
24charities, relatives, and friends that would be likely
25recipients of donations from the ward. The ward's wishes as
26best they can be ascertained shall be carried out, whether or

 

 

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1not tax savings are involved. Actions or applications of funds
2may include, but shall not be limited to, the following:
3        (1) making gifts of income or principal, or both, of
4    the estate, either outright or in trust;
5        (2) conveying, releasing, or disclaiming his or her
6    contingent and expectant interests in property, including
7    marital property rights and any right of survivorship
8    incident to joint tenancy or tenancy by the entirety;
9        (3) releasing or disclaiming his or her powers as
10    trustee, personal representative, custodian for minors, or
11    guardian;
12        (4) exercising, releasing, or disclaiming his or her
13    powers as donee of a power of appointment;
14        (5) entering into contracts;
15        (6) creating for the benefit of the ward or others,
16    revocable or irrevocable trusts of his or her property that
17    may extend beyond his or her disability or life;
18        (7) exercising options of the ward to purchase or
19    exchange securities or other property;
20        (8) exercising the rights of the ward to elect benefit
21    or payment options, to terminate, to change beneficiaries
22    or ownership, to assign rights, to borrow, or to receive
23    cash value in return for a surrender of rights under any
24    one or more of the following:
25            (i) life insurance policies, plans, or benefits,
26            (ii) annuity policies, plans, or benefits,

 

 

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1            (iii) mutual fund and other dividend investment
2        plans,
3            (iv) retirement, profit sharing, and employee
4        welfare plans and benefits;
5        (9) exercising his or her right to claim or disclaim an
6    elective share in the estate of his or her deceased spouse
7    and to renounce any interest by testate or intestate
8    succession or by inter vivos transfer;
9        (10) changing the ward's residence or domicile; or
10        (11) modifying by means of codicil or trust amendment
11    the terms of the ward's will or any revocable trust created
12    by the ward, as the court may consider advisable in light
13    of changes in applicable tax laws.
14    The guardian in his or her petition shall briefly outline
15the action or application of funds for which he or she seeks
16approval, the results expected to be accomplished thereby, and
17the tax savings, if any, expected to accrue. The proposed
18action or application of funds may include gifts of the ward's
19personal property or real estate, but transfers of real estate
20shall be subject to the requirements of Section 20 of this Act.
21Gifts may be for the benefit of prospective legatees, devisees,
22or heirs apparent of the ward or may be made to individuals or
23charities in which the ward is believed to have an interest.
24The guardian shall also indicate in the petition that any
25planned disposition is consistent with the intentions of the
26ward insofar as they can be ascertained, and if the ward's

 

 

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1intentions cannot be ascertained, the ward will be presumed to
2favor reduction in the incidents of various forms of taxation
3and the partial distribution of his or her estate as provided
4in this subsection. The guardian shall not, however, be
5required to include as a beneficiary or fiduciary any person
6who he has reason to believe would be excluded by the ward. A
7guardian shall be required to investigate and pursue a ward's
8eligibility for governmental benefits.
9    (b) Upon the direction of the court which issued his
10letters, a guardian may perform the contracts of his ward which
11were legally subsisting at the time of the commencement of the
12ward's disability. The court may authorize the guardian to
13execute and deliver any bill of sale, deed or other instrument.
14    (c) The guardian of the estate of a ward shall appear for
15and represent the ward in all legal proceedings unless another
16person is appointed for that purpose as guardian or next
17friend. This does not impair the power of any court to appoint
18a guardian ad litem or next friend to defend the interests of
19the ward in that court, or to appoint or allow any person as
20the next friend of a ward to commence, prosecute or defend any
21proceeding in his behalf. Without impairing the power of the
22court in any respect, if the guardian of the estate of a ward
23and another person as next friend shall appear for and
24represent the ward in a legal proceeding in which the
25compensation of the attorney or attorneys representing the
26guardian and next friend is solely determined under a

 

 

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1contingent fee arrangement, the guardian of the estate of the
2ward shall not participate in or have any duty to review the
3prosecution of the action, to participate in or review the
4appropriateness of any settlement of the action, or to
5participate in or review any determination of the
6appropriateness of any fees awarded to the attorney or
7attorneys employed in the prosecution of the action.
8    (d) Adjudication of disability shall not revoke or
9otherwise terminate a trust which is revocable by the ward. A
10guardian of the estate shall have no authority to revoke a
11trust that is revocable by the ward, except that the court may
12authorize a guardian to revoke a Totten trust or similar
13deposit or withdrawable capital account in trust to the extent
14necessary to provide funds for the purposes specified in
15paragraph (a) of this Section. If the trustee of any trust for
16the benefit of the ward has discretionary power to apply income
17or principal for the ward's benefit, the trustee shall not be
18required to distribute any of the income or principal to the
19guardian of the ward's estate, but the guardian may bring an
20action on behalf of the ward to compel the trustee to exercise
21the trustee's discretion or to seek relief from an abuse of
22discretion. This paragraph shall not limit the right of a
23guardian of the estate to receive accountings from the trustee
24on behalf of the ward.
25    (d-5) Upon a verified petition by the plenary or limited
26guardian of the estate or the request of the ward that is

 

 

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1accompanied by a current physician's report that states the
2ward possesses testamentary capacity, the court may enter an
3order authorizing the ward to execute a will or codicil. In so
4ordering, the court shall authorize the guardian to retain
5independent counsel for the ward with whom the ward may execute
6or modify a will or codicil.
7    (e) Absent court order pursuant to the Illinois Power of
8Attorney Act directing a guardian to exercise powers of the
9principal under an agency that survives disability, the
10guardian will have no power, duty or liability with respect to
11any property subject to the agency. This subsection (e) applies
12to all agencies, whenever and wherever executed.
13    (f) Upon petition by any interested person (including the
14standby or short-term guardian), with such notice to interested
15persons as the court directs and a finding by the court that it
16is in the best interest of the disabled person, the court may
17terminate or limit the authority of a standby or short-term
18guardian or may enter such other orders as the court deems
19necessary to provide for the best interest of the disabled
20person. The petition for termination or limitation of the
21authority of a standby or short-term guardian may, but need
22not, be combined with a petition to have another guardian
23appointed for the disabled person.
24(Source: P.A. 95-331, eff. 8-21-07.)".