100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2716

 

Introduced , by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
755 ILCS 5/4a-5
755 ILCS 5/4a-10
755 ILCS 5/4a-15
755 ILCS 5/4a-30

    Amends the Presumptively Void Transfers Article of the Probate Act of 1975. Replaces references to the term "transfer instrument" with "transfer". Changes the definitions of "family member" and "transfer". Provides that if the court determines the transferor lacked the requisite capacity to convey, the entire transfer instrument shall be deemed void. Provides that if the property in question is an interest in real property, a purchaser or mortgagee for value and without notice, before the recordation of a lis pendens for an action, shall take free and clear of the action. Provides that a holder of property shall not be liable for distributing or releasing the property to the transferee if the distribution or release occurs prior to the holder being made a party to an action challenging the transfer. Effective immediately.


LRB100 08470 HEP 18588 b

 

 

A BILL FOR

 

HB2716LRB100 08470 HEP 18588 b

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 Probate Act of 1975 is amended by changing
5Sections 4a-5, 4a-10, 4a-15, and 4a-30 as follows:
 
6    (755 ILCS 5/4a-5)
7    Sec. 4a-5. Definitions. As used in this Article:
8    (1) "Caregiver" means a person who voluntarily, or in
9exchange for compensation, has assumed responsibility for all
10or a portion of the care of another person who needs assistance
11with activities of daily living. "Caregiver" includes a
12caregiver's spouse, cohabitant, child, or employee.
13"Caregiver" does not include a family member of the person
14receiving assistance.
15    (2) "Family member" means a spouse, civil union partner,
16child, step-child, grandchild, sibling, aunt, uncle, niece,
17nephew, first cousin, or parent of the person receiving
18assistance.
19    (3) "Transfer instrument" means the legal document
20intended to effectuate a transfer effective on or after the
21transferor's death and includes, without limitation, a
22transfer effectuated by a will, trust, transfer on death
23instrument deed, form designated as payable on death, contract,

 

 

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1or other beneficiary designation form.
2    (4) "Transferee" means a legatee, a beneficiary of a trust,
3a grantee of a deed, or any other person designated in a
4transfer instrument to receive a nonprobate transfer.
5    (5) "Transferor" means a testator, settlor, grantor of a
6deed, or a decedent whose interest is transferred pursuant to a
7nonprobate transfer.
8(Source: P.A. 98-1093, eff. 1-1-15.)
 
9    (755 ILCS 5/4a-10)
10    Sec. 4a-10. Presumption of void transfer.
11    (a) In any civil action in which a transfer instrument is
12being challenged, there is a rebuttable presumption, except as
13provided in Section 4a-15, that the transfer instrument is void
14if the transferee is a caregiver and the fair market value of
15the transferred property exceeds $20,000. If the court
16determines the transferor lacked the requisite capacity to
17convey, the entire transfer instrument shall be deemed void.
18    (b) Unless a shorter limitations period is required by
19Section 8-1 or 18-12 of this Act, any action under this Section
20shall be filed within 2 years of the date of death of the
21transferor.
22    (c) If the property in question is an interest in real
23property, a purchaser or mortgagee for value and without
24notice, before the recordation of a lis pendens for an action
25under this Section, shall take free and clear of the action.

 

 

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1    (d) The holder of any property subject to this Article
2shall not be liable for distributing or releasing the property
3to the transferee if the distribution or release occurs prior
4to the holder being made a party to an action challenging the
5transfer.
6(Source: P.A. 98-1093, eff. 1-1-15.)
 
7    (755 ILCS 5/4a-15)
8    Sec. 4a-15. Exceptions. The rebuttable presumption
9established by Section 4a-10 can be overcome if the transferee
10proves to the court either:
11        (1) by a preponderance of evidence that the
12    transferee's share under the transfer instrument is not
13    greater than the share the transferee was entitled to under
14    the transferor's transfer instrument in effect prior to the
15    transferee becoming a caregiver; or
16        (2) by clear and convincing evidence that the transfer
17    was not the product of fraud, duress, or undue influence.
18(Source: P.A. 98-1093, eff. 1-1-15.)
 
19    (755 ILCS 5/4a-30)
20    Sec. 4a-30. No independent duty. The rebuttable
21presumption set forth in Section 4a-10 of this Article applies
22only in a civil action in which a transfer instrument is being
23challenged, and does not create or impose an independent duty
24on any financial institution, trust company, trustee, or

 

 

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1similar entity or person related to any transfer instrument.
2(Source: P.A. 98-1093, eff. 1-1-15.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.