93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4137


 
Introduced 1/16/2004, by Terry R. Parke
 
SYNOPSIS AS INTRODUCED:
 		















760 ILCS 5/15.2 new









    Amends the Trusts and Trustees Act.  Provides that a trust for the care of one or more designated domestic or pet animals is valid. Establishes rules regarding the administration and termination of these trusts. Provides that trust instruments shall be liberally construed to bring the transfer within the new provision and to carry out the intent of the transferor. Provides that these trusts are exempt from the operation of the common law rule against perpetuities.



















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A BILL FOR









 














HB4137

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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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adding Section 15.2 as
follows:


 



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    (760 ILCS 5/15.2 new)




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    Sec. 15.2. Trusts for domestic or pet animals. 

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    (a) A trust for the care of one or more designated domestic 
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or pet
animals is valid. The trust terminates when no living 
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animal is covered by the
trust. A governing instrument shall be 
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liberally construed to bring the
transfer
within this Section, 
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to presume against a merely precatory or honorary nature
of its 
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disposition, and to carry out the general intent of the 
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transferor.
Extrinsic evidence is admissible in determining 
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the transferor's intent.

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    (b) A trust for the care of one or more designated domestic 
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or pet
animals is subject to the following provisions:

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        (1) Except as expressly provided otherwise in the

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    instrument creating the trust, no portion of the principal 
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    or income
of the trust may be converted to the use of the 
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    trustee or to a use
other than for the trust's purposes or 
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    for the benefit of a covered animal.

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        (2) Upon termination, the trustee shall transfer the 
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    unexpended
trust property in the following order:

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            (A) as directed in the trust instrument;

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            (B) if there is no such direction in the trust 
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        instrument and if the
trust was created in a 
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        non-residuary clause in
the transferor's will, then 
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        under
the residuary clause in the transferor's will; or

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            (C) if no taker is produced by the application of

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        subparagraph (A) or (B), then to the transferor's 
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        heirs, determined
according to Section 2-1 of the 
 


 









HB4137
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        Probate Act of 1975.

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        (3) The intended use of the principal or income may be 
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    enforced
by an individual designated for that purpose in 
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    the trust instrument or,
if none, by an individual 
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    appointed by a court having jurisdiction of the
matter and 
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    parties, upon petition to it by an individual.

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        (4) Except as ordered by the court or required by the 
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    trust
instrument, no filing, report, registration, 
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    periodic accounting,
separate maintenance of funds, 
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    appointment, or fee is required by
reason of the existence 
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    of the fiduciary relationship of the trustee.

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        (5) The court may reduce the amount of the property

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    transferred if it determines that the amount substantially 
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    exceeds the
amount required for the intended use. The 
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    amount of the reduction, if
any, passes as unexpended trust 
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    property under paragraph (2).

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        (6) If a trustee is not designated or no designated 
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    trustee is
willing and able to serve, the court shall name 
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    a trustee. The court may
order the transfer of the property 
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    to another trustee if the transfer is
necessary to ensure 
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    that the intended use is carried out, and if a
successor 
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    trustee is not designated in the trust instrument or if no

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    designated successor trustee agrees to serve and is able to 
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    serve. The
court may also make other orders and 
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    determinations as are advisable
to carry out the intent of 
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    the transferor and the purpose of this Section.

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        (7) The trust is exempt from the operation of the 
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    common law rule against
perpetuities.