Full Text of HB5469 96th General Assembly
HB5469enr 96TH GENERAL ASSEMBLY
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HB5469 Enrolled |
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| AN ACT concerning financial regulation.
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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 Illinois Trust and Payable on Death Accounts | 5 |
| Act is amended by changing Sections 2, 3, and 4 and by adding | 6 |
| Sections 10 and 15 as follows:
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| (205 ILCS 625/2) (from Ch. 17, par. 2132)
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| Sec. 2. Definitions. As used in this Act, the following | 9 |
| words have
the meanings ascribed to them as set forth herein:
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| (a) "Institution" includes any bank as defined in Section 2 | 11 |
| of the Illinois
Banking Act, any
association
as defined in | 12 |
| Section 1-10.03 of the Illinois Savings and Loan Act,
any | 13 |
| insured savings bank as defined in Section 1007.75 of the
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| Savings Bank Act,
or any credit union as defined in
Section 1.1 | 15 |
| of the Illinois Credit Union Act, and similar federal | 16 |
| institutions.
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| (b) "Account" includes any account, deposit, certificate | 18 |
| of deposit,
withdrawable capital account or credit union share | 19 |
| in any institution. | 20 |
| (c) "Beneficiary" includes a natural person who is living, | 21 |
| a trust, a corporation, a charitable organization, or any other | 22 |
| entity that maintains a lawful existence under the state or | 23 |
| federal authority pursuant to which it was organized.
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| (Source: P.A. 92-285, eff. 1-1-02.)
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| (205 ILCS 625/3) (from Ch. 17, par. 2133)
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| Sec. 3. Trust Account Incidents. If one or more persons | 4 |
| opening or
holding an account sign an agreement with the | 5 |
| institution providing that
the account shall be held in the | 6 |
| name of a person or persons designated as
trustee or trustees | 7 |
| for one or more persons designated as a beneficiary or
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| beneficiaries, the account and any balance therein which exists | 9 |
| from time
to time shall be held as a trust account and unless | 10 |
| otherwise agreed in
writing between the person or persons | 11 |
| opening or holding the account and the institution:
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| (a) If two or more persons are designated trustees of the | 13 |
| account, as
between them they shall hold the account and all | 14 |
| balances therein which
exist from time to time as joint tenants | 15 |
| with right of survivorship and not
as tenants in common;
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| (b) Any trustee during his or her lifetime may change any | 17 |
| of the
designated beneficiaries without the knowledge or | 18 |
| consent of the other
trustees or the beneficiaries by a written | 19 |
| instrument accepted by the institution;
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| (c) Any trustee may make additional deposits to and | 21 |
| withdraw any part or
all of the account at any time without the | 22 |
| knowledge or consent of the
other trustees or the | 23 |
| beneficiaries, subject to the bylaws and regulations
of the | 24 |
| institution, and all withdrawals shall constitute a revocation | 25 |
| of the
agreement as to the amount withdrawn; and
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| (d) Upon the death of the last surviving trustee the person | 2 |
| designated
as the beneficiary (i) who is then living , if the | 3 |
| beneficiary is a natural person, or (ii) that maintains a | 4 |
| lawful existence under the state or federal authority pursuant | 5 |
| to which it was organized, if the beneficiary is not a natural | 6 |
| person, shall be the sole holder of the
account, unless more | 7 |
| than one beneficiary is named and then living or in existence, | 8 |
| in which
case said beneficiaries shall hold the account in | 9 |
| equal shares as tenants
in common. If no beneficiary is then | 10 |
| living or in existence , the proceeds shall vest in
the estate | 11 |
| of the last surviving trustee.
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| (Source: P.A. 84-461.)
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| (205 ILCS 625/4) (from Ch. 17, par. 2134)
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| Sec. 4. Payable on Death Account Incidents. If one or more | 15 |
| persons opening
or
holding an account sign an agreement with | 16 |
| the institution
providing that
on the death of the
last | 17 |
| surviving person designated as holder the account shall be paid
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| to or held by one or more designated beneficiaries another | 19 |
| person or persons , the account, and any balance
therein which | 20 |
| exists from time to time, shall be held as a payment on death
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| account and unless otherwise agreed in writing between the | 22 |
| person or
persons opening
or holding the account and the | 23 |
| institution:
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| (a) Any holder during his or her lifetime may change any of | 25 |
| the
designated beneficiaries persons to own the account at the |
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| death of the
last surviving holder without the
knowledge or | 2 |
| consent of any other holder or the designated beneficiaries | 3 |
| persons
by a
written instrument
accepted by the institution;
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| (b) Any holder may make additional deposits to and withdraw | 5 |
| any
part or
all of the account at any time without the | 6 |
| knowledge or consent of any other
holder or the
designated | 7 |
| beneficiaries person or persons to own the account at the death
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| of the last surviving holder,
subject to the bylaws and | 9 |
| regulations of the institution, and all
withdrawals shall | 10 |
| constitute a revocation of the agreement as to the amount
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| withdrawn; and
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| (c) Upon the death of the last surviving holder of the | 13 |
| account, the
beneficiary person so
designated to be the owner | 14 |
| of the account (i) who is then living , if the beneficiary is a | 15 |
| natural person, or (ii) that maintains a lawful existence under | 16 |
| the state or federal authority pursuant to which it was | 17 |
| organized, if the beneficiary is not a natural person, shall be | 18 |
| the
sole owner of the account, unless more than one beneficiary | 19 |
| person is so designated and
then living or in existence, in | 20 |
| which case those beneficiaries persons shall hold the account | 21 |
| in
equal
shares as tenants in common with no right of | 22 |
| survivorship as between those
beneficiaries persons . If no | 23 |
| beneficiary person designated as the owner of the
account on | 24 |
| the death of the last surviving holder is then living or in | 25 |
| existence , the
proceeds shall vest
in the estate of the last | 26 |
| surviving holder of the account.
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| (Source: P.A. 92-285, eff. 1-1-02.)
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| (205 ILCS 625/10 new) | 3 |
| Sec. 10. Distribution by institution. Upon the death of the | 4 |
| last surviving trustee or holder of the account, the | 5 |
| institution that maintains the account shall distribute the | 6 |
| proceeds to the beneficiary or beneficiaries designated in the | 7 |
| agreement controlling the account without further liability. | 8 |
| No institution, however, shall be required to distribute the | 9 |
| account proceeds until the institution receives (i) legal | 10 |
| evidence of death of all trustees or holders of the account, | 11 |
| (ii) identification from each beneficiary then living, or | 12 |
| business records evidencing the lawful existence and parties | 13 |
| authorized to collect on behalf of each beneficiary not a | 14 |
| natural person, and (iii) written direction from each | 15 |
| beneficiary to close the account and distribute the proceeds in | 16 |
| a form acceptable to the institution. If the institution, in | 17 |
| its discretion, is unable to identify one or more | 18 |
| beneficiaries, or cannot determine the lawful existence of any | 19 |
| beneficiary, or cannot determine a party authorized to collect | 20 |
| on behalf of any beneficiary, or if conflicting claims to the | 21 |
| account are made by the beneficiaries or other interested | 22 |
| parties, then the institution may refuse to distribute the | 23 |
| proceeds, without liability to any beneficiary or other party, | 24 |
| until the institution receives a determination of ownership by | 25 |
| a court of appropriate jurisdiction. |
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| (205 ILCS 625/15 new)
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| Sec. 15. Application of amendments. Section 10 and the | 3 |
| other changes to this Act made by this amendatory Act of the | 4 |
| 96th General Assembly apply to all accounts subject to this Act | 5 |
| regardless of the date of execution of the agreement | 6 |
| controlling the account.
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| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.
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