96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB2056


 
Introduced 2/18/2009, by Rep. Michael J. Madigan - Barbara Flynn Currie - Sara Feigenholtz
 
SYNOPSIS AS INTRODUCED:
 		













760 ILCS 5/4.26










    Amends the Trusts and Trustees Act. Makes a technical change in a Section concerning small trust termination.
















LRB096 05585 AJO 15651 b

















 


 


A BILL FOR









 











HB2056

LRB096 05585 AJO 15651 b






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    AN ACT concerning civil law.

 
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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 4.26 as follows:
 
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    (760 ILCS 5/4.26)

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    Sec. 4.26. Small trust termination. To terminate the
the 
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trust 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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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 
 


 






HB2056
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LRB096 05585 AJO 15651 b




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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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(Source: P.A. 95-605, eff. 6-1-08.)