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1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Residential Real Property Transfer
5on Death Instrument Act is amended by changing Sections 5, 35,
640, 50, 65, 75, and 90 as follows:
 
7    (755 ILCS 27/5)
8    Sec. 5. Definitions. In this Act:
9    "Beneficiary" means a person that receives residential
10real estate under a transfer on death instrument.
11    "Designated beneficiary" means a person designated to
12receive residential real estate in a transfer on death
13instrument.
14    "Joint owner" means an individual who owns residential real
15estate concurrently with one or more other individuals with a
16right of survivorship. The term includes a joint tenant or a
17tenant by the entirety. The term does not include a tenant in
18common.
19    "Owner" means an individual who makes a transfer on death
20instrument.
21    "Person" means an individual, corporation, business trust,
22land trust, estate, inter-vivos revocable or irrevocable
23trust, testamentary trust, partnership, limited liability

 

 

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1company, association, joint venture, public corporation,
2government or governmental subdivision, agency, or
3instrumentality, or any other legal or commercial entity.
4    "Residential real estate" means real property improved
5with not less than one nor more than 4 residential dwelling
6units; a residential condominium unit, units in residential
7cooperatives; or, condominium units, including but not limited
8to the limited common elements allocated to the exclusive use
9thereof that form an integral part of the condominium unit and
10any parking unit or units specified by the declaration to be
11allocated to a specific residential condominium unit; or a
12single tract of agriculture real estate consisting of 40 acres
13or less which is improved with a single family residence. If a
14declaration of condominium ownership provides for individually
15owned and transferable parking units, "residential real
16estate" does not include the parking unit of a specific
17residential condominium unit unless the parking unit is
18included in the legal description of the property being
19transferred by a transfer on death instrument.
20    "Transfer on death instrument" means an instrument
21authorized under this Act.
22(Source: P.A. 97-555, eff. 1-1-12.)
 
23    (755 ILCS 27/35)
24    Sec. 35. Capacity of owner and agent's authority. The
25capacity required to make or revoke a transfer on death

 

 

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1instrument is the same as the capacity required to make a will.
2An agent Unless expressly authorized by the owner under a
3durable power of attorney or other similar instrument creating
4an agency, an agent for an owner does not have the authority to
5create or revoke a transfer on death instrument on behalf of
6the owner. This Section shall not be construed to prohibit the
7agent from selling, transferring, or encumbering the
8residential real estate under the terms of the agency.
9(Source: P.A. 97-555, eff. 1-1-12.)
 
10    (755 ILCS 27/40)
11    Sec. 40. Requirements.
12    (a) A transfer on death instrument:
13        (1) must contain the essential elements and
14    formalities of a properly recordable inter vivos deed; and
15    must be executed, witnessed, and acknowledged in
16    substantial compliance with Section 45;
17        (2) must state that the transfer to the designated
18    beneficiary is to occur at the owner's death; and
19        (3) must be recorded before the owner's death in the
20    public records in the office of the recorder of the county
21    or counties in which any part of the residential real
22    estate is located.
23    (b) The failure to comply with any of the requirements of
24subsection (a) will render the transfer on death instrument
25void and ineffective to transfer title to the residential real

 

 

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1estate at the owner's death.
2(Source: P.A. 97-555, eff. 1-1-12.)
 
3    (755 ILCS 27/50)
4    Sec. 50. Notice, delivery, acceptance, or consideration
5not required. A transfer on death instrument is effective
6without:
7        (1) notice or delivery to or acceptance by the
8    designated beneficiary during the owner's life; or
9        (2) consideration.
10(Source: P.A. 97-555, eff. 1-1-12.)
 
11    (755 ILCS 27/65)
12    Sec. 65. Effect of transfer on death instrument at owner's
13death.
14    (a) Except as otherwise provided in the transfer on death
15instrument, in this Section, or in the Probate Act of 1975 or
16any other Act applicable to nontestamentary instruments, on the
17death of the owner, the following rules apply to residential
18real estate that is the subject of a transfer on death
19instrument and owned by the owner at death:
20        (1) Subject to the beneficiary's right to disclaim or
21    refuse to accept the transfer, the interest in the
22    residential real estate is transferred to the beneficiary
23    in accordance with the instrument.
24        (2) If a designated beneficiary fails to survive the

 

 

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1    owner or is not in existence on the date of the owner's
2    death, then except as provided in paragraph (3) the
3    residential real estate shall pass to the owner's estate.
4        (3) Unless the owner provides otherwise, if the
5    designated beneficiary is a descendant of the owner who
6    dies before the owner, the descendants of the deceased
7    designated beneficiary living at the time of the owner's
8    death shall take the residential real estate per stirpes.
9    If the designated beneficiary is one of a class of
10    designated beneficiaries, and any member of the class dies
11    before the owner, the members of the class living when the
12    owner dies shall take the share or shares which the
13    deceased member would have taken if he or she were then
14    living, except that if the deceased member of the class is
15    a descendant of the owner, the descendants of the deceased
16    member then living shall take per stirpes the share or
17    shares which the deceased member would have taken if he or
18    she were then living.
19    (b) Subject to the Probate Act of 1975 and the Conveyances
20Act, a beneficiary takes the residential real estate subject to
21all conveyances, encumbrances, assignments, contracts,
22options, mortgages, liens, and other interests to which the
23residential real estate is subject at the owner's death.
24    (c) A transfer on death instrument transfers residential
25real estate without covenant or warranty of title even if the
26instrument contains a contrary provision.

 

 

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1    (d) If there is no sufficient evidence of the order of the
2owner and designated beneficiary's deaths, otherwise than
3simultaneously, and there is no other provision in the transfer
4on death instrument, for purposes of this Section, the
5designated beneficiary shall be deemed to have predeceased the
6owner.
7(Source: P.A. 97-555, eff. 1-1-12.)
 
8    (755 ILCS 27/75)
9    Sec. 75. Notice of death affidavit, acceptance and
10effective date of transfer. Any beneficiary who takes under a
11transfer on death instrument may file in the office of the
12recorder in the county or counties where the residential real
13estate is located a notice of death affidavit to confirm title
14following the death of the owner. The notice of death affidavit
15shall contain the name and address, if known, of each
16beneficiary taking under the transfer on death instrument, the
17legal description of the property, the street address and
18parcel identification number of the residential real estate, if
19known, the date of the transfer on death instrument and its
20recording document number, the name of the deceased owner, the
21date and place of death, and the name and address to which all
22future tax bills should be mailed. The affidavit shall be
23acknowledged under penalty of perjury before a notary public or
24person authorized to administer oaths. The filing of the notice
25of death affidavit is not a condition to the transfer of title.

 

 

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1A transfer on death instrument is effective as of the owner's
2death upon the filing of a notice of death affidavit and
3acceptance by the beneficiary or beneficiaries in the office of
4the recorder in the county or counties where the residential
5real estate is located. The notice of death affidavit and
6acceptance shall contain the name and address of each
7beneficiary who shall take under the transfer on death
8instrument, a legal description of the property, the street
9address, and parcel identification number of the residential
10real estate, the name of the deceased owner, and the date of
11death. The notice of death affidavit and acceptance shall be
12signed by each beneficiary or by the beneficiary's authorized
13representative. If a notice of death affidavit and acceptance
14has not been filed by at least one beneficiary or by a
15beneficiary's authorized representative in the office of the
16recorder in the county or counties where the residential real
17estate is located within 30 days after the owner's death, the
18personal representative of the owner's estate, if any, may take
19possession of the residential real estate in accordance with
20Section 20-1 of the Probate Act of 1975, and shall be entitled
21to a lien for all reasonable costs and expenses incurred in the
22management and care thereof provided that a reasonable attempt
23to notify the beneficiary or beneficiaries has been made. If a
24notice of death affidavit and acceptance has not been filed by
25at least one beneficiary or by the beneficiary's authorized
26representative in the office of the recorder in the county or

 

 

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1counties where the residential real estate is located within 2
2years after the owner's death, the transfer on death instrument
3shall be void and ineffective and the residential real estate
4shall pass to the owner's estate as provided in paragraph (2)
5of subsection (a) of Section 65 to be administered and
6distributed in accordance with the terms thereof.
7(Source: P.A. 97-555, eff. 1-1-12.)
 
8    (755 ILCS 27/90)
9    Sec. 90. Limitations. An action to set aside or contest the
10validity of a transfer on death instrument shall be commenced
11within the earlier of 2 years after the date of the owner's
12death or 6 months from the date that letters of office are
13issued. However, a purchaser or mortgagee for value and without
14notice before the recordation of a lis pendens for an action to
15set aside or contest the transfer on death instrument for any
16reason shall take free and clear of any such action or contest.
17(Source: P.A. 97-555, eff. 1-1-12.)
 
18    (755 ILCS 27/100 rep.)
19    Section 10. The Illinois Residential Real Property
20Transfer on Death Instrument Act is amended by repealing
21Section 100.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    755 ILCS 27/5
4    755 ILCS 27/35
5    755 ILCS 27/40
6    755 ILCS 27/50
7    755 ILCS 27/65
8    755 ILCS 27/75
9    755 ILCS 27/90
10    755 ILCS 27/100 rep.