Bill Text: IL SB3552 | 2011-2012 | 97th General Assembly | Engrossed

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Bill Title: Amends the Code of Civil Procedure. In provisions exempting designated items of personal property, adds a revocable or irrevocable trust which names the wife or husband of the insured or which names a child, parent, or other person dependent upon the insured as the primary beneficiary of the trust. Effective July 1, 2012.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2012-08-17 - Public Act . . . . . . . . . 97-1030 [SB3552 Detail]

Download: Illinois-2011-SB3552-Engrossed.html

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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 Code of Civil Procedure is amended by
changing Section 12-1001 as follows:
(735 ILCS 5/12-1001) (from Ch. 110, par. 12-1001)
Sec. 12-1001. Personal property exempt. The following
personal property, owned by the debtor, is exempt from
judgment, attachment, or distress for rent:
(a) The necessary wearing apparel, bible, school
books, and family pictures of the debtor and the debtor's
dependents;
(b) The debtor's equity interest, not to exceed $4,000
in value, in any other property;
(c) The debtor's interest, not to exceed $2,400 in
value, in any one motor vehicle;
(d) The debtor's equity interest, not to exceed $1,500
in value, in any implements, professional books, or tools
of the trade of the debtor;
(e) Professionally prescribed health aids for the
debtor or a dependent of the debtor;
(f) All proceeds payable because of the death of the
insured and the aggregate net cash value of any or all life

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insurance and endowment policies and annuity contracts
payable to a wife or husband of the insured, or to a child,
parent, or other person dependent upon the insured, or to a
revocable or irrevocable trust which names the wife or
husband of the insured or which names a child, parent, or
other person dependent upon the insured as the primary
beneficiary of the trust, whether the power to change the
beneficiary is reserved to the insured or not and whether
the insured or the insured's estate is a contingent
beneficiary or not;
(g) The debtor's right to receive:
(1) a social security benefit, unemployment
compensation, or public assistance benefit;
(2) a veteran's benefit;
(3) a disability, illness, or unemployment
benefit; and
(4) alimony, support, or separate maintenance, to
the extent reasonably necessary for the support of the
debtor and any dependent of the debtor.
(h) The debtor's right to receive, or property that is
traceable to:
(1) an award under a crime victim's reparation law;
(2) a payment on account of the wrongful death of
an individual of whom the debtor was a dependent, to
the extent reasonably necessary for the support of the
debtor;

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(3) a payment under a life insurance contract that
insured the life of an individual of whom the debtor
was a dependent, to the extent reasonably necessary for
the support of the debtor or a dependent of the debtor;
(4) a payment, not to exceed $15,000 in value, on
account of personal bodily injury of the debtor or an
individual of whom the debtor was a dependent; and
(5) any restitution payments made to persons
pursuant to the federal Civil Liberties Act of 1988 and
the Aleutian and Pribilof Island Restitution Act, P.L.
100-383.
For purposes of this subsection (h), a debtor's right
to receive an award or payment shall be exempt for a
maximum of 2 years after the debtor's right to receive the
award or payment accrues; property traceable to an award or
payment shall be exempt for a maximum of 5 years after the
award or payment accrues; and an award or payment and
property traceable to an award or payment shall be exempt
only to the extent of the amount of the award or payment,
without interest or appreciation from the date of the award
or payment.
(i) The debtor's right to receive an award under Part
20 of Article II of this Code relating to crime victims'
awards.
(j) Moneys held in an account invested in the Illinois
College Savings Pool of which the debtor is a participant

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or donor, except the following non-exempt contributions:
(1) any contribution to such account by the debtor
as participant or donor that is made with the actual
intent to hinder, delay, or defraud any creditor of the
debtor;
(2) any contributions to such account by the debtor
as participant during the 365 day period prior to the
date of filing of the debtor's petition for bankruptcy
that, in the aggregate during such period, exceed the
amount of the annual gift tax exclusion under Section
2503(b) of the Internal Revenue Code of 1986, as
amended, in effect at the time of contribution; or
(3) any contributions to such account by the debtor
as participant during the period commencing 730 days
prior to and ending 366 days prior to the date of
filing of the debtor's petition for bankruptcy that, in
the aggregate during such period, exceed the amount of
the annual gift tax exclusion under Section 2503(b) of
the Internal Revenue Code of 1986, as amended, in
effect at the time of contribution.
For purposes of this subsection (j), "account"
includes all accounts for a particular designated
beneficiary, of which the debtor is a participant or donor.
Money due the debtor from the sale of any personal property
that was exempt from judgment, attachment, or distress for rent
at the time of the sale is exempt from attachment and

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garnishment to the same extent that the property would be
exempt had the same not been sold by the debtor.
If a debtor owns property exempt under this Section and he
or she purchased that property with the intent of converting
nonexempt property into exempt property or in fraud of his or
her creditors, that property shall not be exempt from judgment,
attachment, or distress for rent. Property acquired within 6
months of the filing of the petition for bankruptcy shall be
presumed to have been acquired in contemplation of bankruptcy.
The personal property exemptions set forth in this Section
shall apply only to individuals and only to personal property
that is used for personal rather than business purposes. The
personal property exemptions set forth in this Section shall
not apply to or be allowed against any money, salary, or wages
due or to become due to the debtor that are required to be
withheld in a wage deduction proceeding under Part 8 of this
Article XII.
(Source: P.A. 94-293, eff. 1-1-06; 95-306, eff. 1-1-08.)
Section 99. Effective date. This Act takes effect July 1,
2012.