093_HB2262eng

 
HB2262 Engrossed                     LRB093 06421 JLS 06544 b

 1        AN ACT concerning trust and payable on death accounts.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Trust  and  Payable  on  Death
 5    Accounts  Act  is  amended  by  changing  Sections 3 and 4 as
 6    follows:

 7        (205 ILCS 625/3) (from Ch. 17, par. 2133)
 8        Sec. 3.  Trust account incidents.  If one or more persons
 9    opening or holding an account  sign  an  agreement  with  the
10    institution  providing  that the account shall be held in the
11    name of a person or persons designated as trustee or trustees
12    for one or  more  persons  designated  as  a  beneficiary  or
13    beneficiaries,  the  account  and  any  balance therein which
14    exists from time to time shall be held as a trust account and
15    unless otherwise agreed in  writing  between  the  person  or
16    persons opening or holding the account and the institution:
17        (a)  If  two  or  more persons are designated trustees of
18    the account, as between them they shall hold the account  and
19    all  balances  therein which exist from time to time as joint
20    tenants with right of survivorship  and  not  as  tenants  in
21    common;
22        (b)  Any  trustee  during  his or her lifetime may change
23    any of the designated beneficiaries without the knowledge  or
24    consent  of  the  other  trustees  or  the beneficiaries by a
25    written instrument accepted by the institution;
26        (c)  Any trustee may  make  additional  deposits  to  and
27    withdraw  any  part or all of the account at any time without
28    the knowledge  or  consent  of  the  other  trustees  or  the
29    beneficiaries,  subject  to the bylaws and regulations of the
30    institution,  and  all   withdrawals   shall   constitute   a
31    revocation of the agreement as to the amount withdrawn; and
 
HB2262 Engrossed            -2-      LRB093 06421 JLS 06544 b
 1        (d)  Upon  the  death  of  the last surviving trustee the
 2    person designated as the beneficiary who is then living shall
 3    be the sole holder of  the  account,  unless  more  than  one
 4    beneficiary  is  named  and  then  living  in which case said
 5    beneficiaries shall hold  the  account  in  equal  shares  as
 6    tenants  in  common.   If  no beneficiary is then living, the
 7    proceeds shall vest in  the  estate  of  the  last  surviving
 8    trustee.  For  purposes  of  this  Section, a beneficiary may
 9    include  a  natural  person,  a  charitable  organization,  a
10    corporation, a partnership, a  joint  venture,  a  trust,  an
11    estate,   or   an  unincorporated  association,  and  if  the
12    beneficiary is other than a natural person it shall be deemed
13    to be "living" at the time of the death of the last surviving
14    trustee if it exists under the applicable law at that time.
15    (Source: P.A. 84-461.)

16        (205 ILCS 625/4) (from Ch. 17, par. 2134)
17        Sec. 4.  Payable on Death Account Incidents.  If  one  or
18    more  persons opening or holding an account sign an agreement
19    with the institution providing that on the death of the  last
20    surviving  person  designated  as holder the account shall be
21    paid to or held by another person or  persons,  the  account,
22    and any balance therein which exists from time to time, shall
23    be  held  as  a payment on death account and unless otherwise
24    agreed in writing between the person or  persons  opening  or
25    holding the account and the institution:
26        (a)  Any holder during his or her lifetime may change any
27    of  the designated persons to own the account at the death of
28    the last surviving holder without the knowledge or consent of
29    any other holder or  the  designated  persons  by  a  written
30    instrument accepted by the institution;
31        (b)  Any  holder  may  make  additional  deposits  to and
32    withdraw any part or all of the account at any  time  without
33    the   knowledge  or  consent  of  any  other  holder  or  the
 
HB2262 Engrossed            -3-      LRB093 06421 JLS 06544 b
 1    designated person or persons to own the account at the  death
 2    of  the  last  surviving  holder,  subject  to the bylaws and
 3    regulations of the institution,  and  all  withdrawals  shall
 4    constitute  a  revocation  of  the agreement as to the amount
 5    withdrawn; and
 6        (c)  Upon the death of the last surviving holder  of  the
 7    account,  the  person  so  designated  to be the owner of the
 8    account who is then living shall be the  sole  owner  of  the
 9    account,  unless  more  than  one person is so designated and
10    then living in  which  case  those  persons  shall  hold  the
11    account in equal shares as tenants in common with no right of
12    survivorship   as   between  those  persons.   If  no  person
13    designated as the owner of the account on the  death  of  the
14    last surviving holder is then living, the proceeds shall vest
15    in  the  estate  of the last surviving holder of the account.
16    For purposes of this Section, a person designated to  be  the
17    owner  of  the  account  upon the death of the last surviving
18    holder of  the  account  may  include  a  natural  person,  a
19    charitable  organization,  a  corporation,  a  partnership, a
20    joint venture, a  trust,  an  estate,  or  an  unincorporated
21    association,  and if the person so designated is other than a
22    natural person it shall be deemed to be "living" at the  time
23    of  the  death of the last surviving holder of the account if
24    it exists under the applicable law at that time.
25    (Source: P.A. 92-285, eff. 1-1-02.)

26        Section 99.  Effective date.  This Act takes effect  upon
27    becoming law.