HB4389 Engrossed LRB093 18305 LCB 44010 b

1     AN ACT concerning trusts.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Trusts and Trustees Act is amended by
5 changing Section 4.20 as follows:
 
6     (760 ILCS 5/4.20)  (from Ch. 17, par. 1674)
7     Sec. 4.20. To distribute income and discretionary amounts
8 of principal in such one or more of the following ways as the
9 trustee believes to be for the best interests of any
10 beneficiary who at the time of distribution is under legal
11 disability or in the opinion of the trustee is unable properly
12 to manage his affairs because of illness, physical or mental
13 disability or any other cause:
14     (a) directly to the beneficiary;
15     (b) to a duly appointed guardian of the beneficiary;
16     (c) to a custodian for the beneficiary under the Uniform
17 Transfers to Minors Act;
18     (d) to an adult relative of the beneficiary;
19     (e) by expending the money or using the property directly
20 for the benefit of the beneficiary; and the trustee is not
21 required to see to the application of any distribution so made;
22 and .
23     (f) to a trust, created prior to the time the distribution
24 becomes payable, for the sole benefit of the beneficiary and
25 those dependent upon the beneficiary during his or her
26 lifetime, to be administered as a part thereof, except that any
27 amounts distributed to the trust pursuant to this paragraph (f)
28 shall be separately accounted for by the trustee of the trust
29 and shall be indefeasibly vested in the beneficiary so that if
30 the beneficiary dies prior to complete distribution of such
31 amounts, the amounts and the accretions, earnings, and income
32 thereon, if any, shall be paid to the beneficiary's estate;

 

 

HB4389 Engrossed - 2 - LRB093 18305 LCB 44010 b

1 provided, however, that this paragraph (f) shall not apply to
2 the extent that it would cause a trust otherwise qualifying for
3 the federal estate tax marital deduction not to so qualify.
4 (Source: P.A. 84-915.)
 
5     Section 99. Effective date. This Act takes effect upon
6 becoming law.