HB4662ham002 97TH GENERAL ASSEMBLY

Rep. Emily McAsey

Filed: 3/26/2012

09700HB4662ham002 LRB097 14569 WGH 67987 a

AMENDMENT TO HOUSE BILL 4662

AMENDMENT NO. ______. Amend House Bill 4662 by replacing lines 17 through 26 of page 7 and lines 1 through 12 of page 8 with the following:

"(e) Notice. An authorized trustee may exercise the power to distribute in favor of a second trust under subsections (c) and (d) without the consent of the settlor or the beneficiaries of the first trust and without court approval if:

(1) there are one or more legally competent current beneficiaries and one or more legally competent presumptive remainder beneficiaries and the authorized trustee sends written notice of the trustee's decision, specifying the manner in which the trustee intends to exercise the power and the prospective effective date for the distribution, to all of the legally competent current beneficiaries and presumptive remainder beneficiaries, determined as of the date the notice is sent and assuming non-exercise of all powers of appointment; and

(2) no beneficiary to whom notice was sent objects to the distribution in writing delivered to the trustee within 60 days after the notice is sent ("notice period").

A trustee is not required to provide a copy of the notice to a beneficiary who is known to the trustee but who cannot be located by the trustee after reasonable diligence or who is not known to the trustee.

If a charity is a current beneficiary or presumptive remainder beneficiary of the trust, the notice shall also be given to the Attorney General's Charitable Trust Bureau."; and

on page 9 by replacing lines 2 through 5 with the following:

"exercise of the trustee's powers. The trustee has the burden of proving the proposed exercise of the power furthers the purposes of the trust."; and

on page 9, line 24, by replacing "do so" with "extend or lengthen its perpetuities period"; and

on page 10 by replacing lines 25 and 26 with the following:

"provision of applicable law, or a court order. In addition, distribution of trust principal to a second trust may be made by agreement between a trustee and all primary beneficiaries of a first trust, acting either individually or by their respective representatives in accordance with Section 16.1 of this Act."; and

on page 16, line 9, by replacing "Section" with "Section. If the settlor of a first trust is not also the settlor of a second trust, then the settlor of the first trust shall be considered the settlor of the second trust, but only with respect to the portion of second trust distributed from the first trust in accordance with this Section"; and

on page 17, line 5, by replacing "The" with "Except for a distribution of trust principal from a first trust to a second trust made by agreement in accordance with Section 16.1 of this Act, the".