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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB1136
Introduced 02/08/05, by Rep. Randall M. Hultgren SYNOPSIS AS INTRODUCED:
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760 ILCS 5/4 |
from Ch. 17, par. 1654 |
760 ILCS 5/4.26 new |
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Amends the Trusts and Trustees Act. Permits a trustee to terminate a trust if it has a market value of less than $100,000 and the costs of continuing the trust will substantially impair the purpose of the trust. Outlines how distribution shall be made. Provides that a trustee who is an income beneficiary may not participate as a trustee in the exercise of termination power. Effective immediately.
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A BILL FOR
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HB1136 |
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LRB094 08678 LCB 38889 b |
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| AN ACT concerning trusts.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Trusts and Trustees Act is amended by |
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| changing Section 4 and adding Section 4.26 as follows:
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| (760 ILCS 5/4) (from Ch. 17, par. 1654)
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| Sec. 4. Powers of
Trustee.
The trustee has the powers |
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| specified in the Sections following this Section and preceding |
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| Section 5
4.01 through 4.25.
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| (Source: P.A. 88-367.)
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| (760 ILCS 5/4.26 new)
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| Sec. 4.26. Small trust termination. To terminate the trust |
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| and distribute the trust estate, including principal and |
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| accrued and undistributed income, if the trustee determines, in |
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| the trustee's sole discretion, that the market value of a trust |
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| is less than $100,000 and that the costs of continuing the |
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| trust will substantially impair accomplishment of the purpose |
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| of the trust. |
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| Distribution shall be made to the persons then entitled to |
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| receive or eligible to have the benefit of the income from the |
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| trust in the proportions in which they are entitled thereto, or |
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| if their interests are indefinite, to those persons per stirpes |
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| if they have a common ancestor, or if not, then in equal |
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| shares. |
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| If a particular trustee is an income beneficiary of the |
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| 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 |
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| exercise of this termination power; provided, however, that if |
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| the trust has one or more co-trustees who are not so |
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| disqualified from participating, the co-trustee or co-trustees |
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| may exercise this power. |