Bill Text: IL HB2056 | 2009-2010 | 96th General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2009-04-03 - Rule 19(a) / Re-referred to Rules Committee [HB2056 Detail]

Download: Illinois-2009-HB2056-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB2056 Introduced 2/18/2009, by Rep. Michael J. Madigan - Barbara Flynn Currie - Sara Feigenholtz 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.
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A BILL FOR
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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Trusts and Trustees Act is amended by
changing Section 4.26 as follows:
(760 ILCS 5/4.26)
Sec. 4.26. Small trust termination. To terminate the the
trust and distribute the trust estate, including principal and
accrued and undistributed income, if the trustee determines, in
the trustee's sole discretion with the consent of the
recipients, that the market value of a trust is less than
$100,000 and that the costs of continuing the trust will
substantially impair accomplishment of the purpose of the
trust.
Distribution shall be made to the persons then entitled to
receive or eligible to have the benefit of the income from the
trust in the proportions in which they are entitled thereto, or
if their interests are indefinite, to those persons per stirpes
if they have a common ancestor, or if not, then in equal
shares. The trustee shall give notice to the persons at least
30 days prior to the effective date of the termination.
If a particular trustee is an income beneficiary of the
trust or is legally obligated to an income beneficiary, then

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