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Executive Committee
Filed: 5/30/2007
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LRB095 04908 AJO 36638 a |
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| AMENDMENT TO SENATE BILL 531
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| AMENDMENT NO. ______. Amend Senate Bill 531, by replacing |
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| everything after the enacting clause with the following:
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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 with the consent of the |
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09500SB0531ham001 |
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LRB095 04908 AJO 36638 a |
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| recipients, that the market value of a trust is less than |
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| $100,000 and that the costs of continuing the trust will |
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| substantially impair accomplishment of the purpose of the |
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| 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. The trustee shall give notice to the persons at least |
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| 30 days prior to the effective date of the termination. |
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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. |
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| This Section shall not apply to the extent that it would |
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| cause a trust otherwise qualifying for a federal or State tax |
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| benefit or other benefit not to so qualify, nor shall it apply |
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| to trusts for domestic or pet animals. |
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| The provisions of this amendatory Act of the 95th General |
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| Assembly apply to all trusts created before, on, or after its |
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| effective date.".
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