Bill Text: IL HB5469 | 2009-2010 | 96th General Assembly | Enrolled
Bill Title: Amends the Illinois Trust and Payable on Death Accounts Act. Provides that "beneficiary" includes, but is not limited to, a natural person, corporation, charitable organization, or any other organization.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-07-21 - Public Act . . . . . . . . . 96-1151 [HB5469 Detail]
Download: Illinois-2009-HB5469-Enrolled.html
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1 | AN ACT concerning financial regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Trust and Payable on Death Accounts | ||||||
5 | Act is amended by changing Sections 2, 3, and 4 and by adding | ||||||
6 | Sections 10 and 15 as follows:
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7 | (205 ILCS 625/2) (from Ch. 17, par. 2132)
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8 | Sec. 2. Definitions. As used in this Act, the following | ||||||
9 | words have
the meanings ascribed to them as set forth herein:
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10 | (a) "Institution" includes any bank as defined in Section 2 | ||||||
11 | of the Illinois
Banking Act, any
association
as defined in | ||||||
12 | Section 1-10.03 of the Illinois Savings and Loan Act,
any | ||||||
13 | insured savings bank as defined in Section 1007.75 of the
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14 | Savings Bank Act,
or any credit union as defined in
Section 1.1 | ||||||
15 | of the Illinois Credit Union Act, and similar federal | ||||||
16 | institutions.
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17 | (b) "Account" includes any account, deposit, certificate | ||||||
18 | of deposit,
withdrawable capital account or credit union share | ||||||
19 | in any institution. | ||||||
20 | (c) "Beneficiary" includes a natural person who is living, | ||||||
21 | a trust, a corporation, a charitable organization, or any other | ||||||
22 | entity that maintains a lawful existence under the state or | ||||||
23 | federal authority pursuant to which it was organized.
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1 | (Source: P.A. 92-285, eff. 1-1-02.)
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2 | (205 ILCS 625/3) (from Ch. 17, par. 2133)
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3 | Sec. 3. Trust Account Incidents. If one or more persons | ||||||
4 | opening or
holding an account sign an agreement with the | ||||||
5 | institution providing that
the account shall be held in the | ||||||
6 | name of a person or persons designated as
trustee or trustees | ||||||
7 | for one or more persons designated as a beneficiary or
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8 | beneficiaries, the account and any balance therein which exists | ||||||
9 | from time
to time shall be held as a trust account and unless | ||||||
10 | otherwise agreed in
writing between the person or persons | ||||||
11 | opening or holding the account and the institution:
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12 | (a) If two or more persons are designated trustees of the | ||||||
13 | account, as
between them they shall hold the account and all | ||||||
14 | balances therein which
exist from time to time as joint tenants | ||||||
15 | with right of survivorship and not
as tenants in common;
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16 | (b) Any trustee during his or her lifetime may change any | ||||||
17 | of the
designated beneficiaries without the knowledge or | ||||||
18 | consent of the other
trustees or the beneficiaries by a written | ||||||
19 | instrument accepted by the institution;
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20 | (c) Any trustee may make additional deposits to and | ||||||
21 | withdraw any part or
all of the account at any time without the | ||||||
22 | knowledge or consent of the
other trustees or the | ||||||
23 | beneficiaries, subject to the bylaws and regulations
of the | ||||||
24 | institution, and all withdrawals shall constitute a revocation | ||||||
25 | of the
agreement as to the amount withdrawn; and
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1 | (d) Upon the death of the last surviving trustee the person | ||||||
2 | designated
as the beneficiary (i) who is then living , if the | ||||||
3 | beneficiary is a natural person, or (ii) that maintains a | ||||||
4 | lawful existence under the state or federal authority pursuant | ||||||
5 | to which it was organized, if the beneficiary is not a natural | ||||||
6 | person, shall be the sole holder of the
account, unless more | ||||||
7 | than one beneficiary is named and then living or in existence, | ||||||
8 | in which
case said beneficiaries shall hold the account in | ||||||
9 | equal shares as tenants
in common. If no beneficiary is then | ||||||
10 | living or in existence , the proceeds shall vest in
the estate | ||||||
11 | of the last surviving trustee.
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12 | (Source: P.A. 84-461.)
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13 | (205 ILCS 625/4) (from Ch. 17, par. 2134)
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14 | Sec. 4. Payable on Death Account Incidents. If one or more | ||||||
15 | persons opening
or
holding an account sign an agreement with | ||||||
16 | the institution
providing that
on the death of the
last | ||||||
17 | surviving person designated as holder the account shall be paid
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18 | to or held by one or more designated beneficiaries another | ||||||
19 | person or persons , the account, and any balance
therein which | ||||||
20 | exists from time to time, shall be held as a payment on death
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21 | account and unless otherwise agreed in writing between the | ||||||
22 | person or
persons opening
or holding the account and the | ||||||
23 | institution:
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24 | (a) Any holder during his or her lifetime may change any of | ||||||
25 | the
designated beneficiaries persons to own the account at the |
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1 | death of the
last surviving holder without the
knowledge or | ||||||
2 | consent of any other holder or the designated beneficiaries | ||||||
3 | persons
by a
written instrument
accepted by the institution;
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4 | (b) Any holder may make additional deposits to and withdraw | ||||||
5 | any
part or
all of the account at any time without the | ||||||
6 | knowledge or consent of any other
holder or the
designated | ||||||
7 | beneficiaries person or persons to own the account at the death
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8 | of the last surviving holder,
subject to the bylaws and | ||||||
9 | regulations of the institution, and all
withdrawals shall | ||||||
10 | constitute a revocation of the agreement as to the amount
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11 | withdrawn; and
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12 | (c) Upon the death of the last surviving holder of the | ||||||
13 | account, the
beneficiary person so
designated to be the owner | ||||||
14 | of the account (i) who is then living , if the beneficiary is a | ||||||
15 | natural person, or (ii) that maintains a lawful existence under | ||||||
16 | the state or federal authority pursuant to which it was | ||||||
17 | organized, if the beneficiary is not a natural person, shall be | ||||||
18 | the
sole owner of the account, unless more than one beneficiary | ||||||
19 | person is so designated and
then living or in existence, in | ||||||
20 | which case those beneficiaries persons shall hold the account | ||||||
21 | in
equal
shares as tenants in common with no right of | ||||||
22 | survivorship as between those
beneficiaries persons . If no | ||||||
23 | beneficiary person designated as the owner of the
account on | ||||||
24 | the death of the last surviving holder is then living or in | ||||||
25 | existence , the
proceeds shall vest
in the estate of the last | ||||||
26 | surviving holder of the account.
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1 | (Source: P.A. 92-285, eff. 1-1-02.)
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2 | (205 ILCS 625/10 new) | ||||||
3 | Sec. 10. Distribution by institution. Upon the death of the | ||||||
4 | last surviving trustee or holder of the account, the | ||||||
5 | institution that maintains the account shall distribute the | ||||||
6 | proceeds to the beneficiary or beneficiaries designated in the | ||||||
7 | agreement controlling the account without further liability. | ||||||
8 | No institution, however, shall be required to distribute the | ||||||
9 | account proceeds until the institution receives (i) legal | ||||||
10 | evidence of death of all trustees or holders of the account, | ||||||
11 | (ii) identification from each beneficiary then living, or | ||||||
12 | business records evidencing the lawful existence and parties | ||||||
13 | authorized to collect on behalf of each beneficiary not a | ||||||
14 | natural person, and (iii) written direction from each | ||||||
15 | beneficiary to close the account and distribute the proceeds in | ||||||
16 | a form acceptable to the institution. If the institution, in | ||||||
17 | its discretion, is unable to identify one or more | ||||||
18 | beneficiaries, or cannot determine the lawful existence of any | ||||||
19 | beneficiary, or cannot determine a party authorized to collect | ||||||
20 | on behalf of any beneficiary, or if conflicting claims to the | ||||||
21 | account are made by the beneficiaries or other interested | ||||||
22 | parties, then the institution may refuse to distribute the | ||||||
23 | proceeds, without liability to any beneficiary or other party, | ||||||
24 | until the institution receives a determination of ownership by | ||||||
25 | a court of appropriate jurisdiction.
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1 | (205 ILCS 625/15 new)
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2 | Sec. 15. Application of amendments. Section 10 and the | ||||||
3 | other changes to this Act made by this amendatory Act of the | ||||||
4 | 96th General Assembly apply to all accounts subject to this Act | ||||||
5 | regardless of the date of execution of the agreement | ||||||
6 | controlling the account.
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7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
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