(760 ILCS 55/15.5)
Sec. 15.5.
Termination and transfer of certain trusts.
(a) If a trustee who is subject to this Act determines that the continued
administration of a trust has become impractical because of the trust's small
size or because of changed circumstances that adversely affect the charitable
purpose or purposes of the trust, then after notifying each named charitable
organization, if any, for the benefit of which the trust was created and after
obtaining the consent of the Attorney General, the trustee may amend the terms
of the governing instrument of the trust to the extent necessary to terminate
the trust and
to transfer the trust assets as provided in subsection (c) or (d). The
Attorney General shall consent to the termination of the trust and the transfer
of the trust assets only after having determined that the termination and
transfer are necessary or appropriate, in the case of termination
because of the trust's small size, to implement the charitable purpose or
purposes of the
trust or, in the case of termination because of changed circumstances, to
fulfill the
general intent of the donor of the trust as expressed in the governing
instrument of the trust.
(b) For purposes of subsection (a), the term "small size" shall mean a
trust for which the annual expenses of administration, including the trustee's
fees, the investment management and accounting fees and excise taxes would, if
charged entirely against income, exceed 25% of the income of the trust, and the
term "changed circumstances" shall mean a condition in which the charitable
purpose or purposes of the trust shall, in the judgment of the trustee, have
become illegal, unnecessary, incapable of fulfillment, or inconsistent with the
charitable needs of the community.
(c) Subject to subsection (d) with respect to a trust terminated because of
the trust's small size, the trustee shall transfer the trust assets of the
terminated trust to a community foundation or similar publicly-supported
organization described in Section 170 (b)(1)(A)(vi) of the Internal Revenue
Code of 1986, to be administered, in the case of termination because of the
trust's small size, in implementation of the charitable purpose or purposes of
the trust or, in the case of termination because of changed circumstances, in
accordance with the general intent of the donor of the trust as expressed in
the governing
instrument of the trust.
(d) If a trust terminated because of the trust's small size was created for
the benefit of a named charitable organization which has established an
endowment fund and if the principal of the endowment fund is under its
irrevocable terms no more expendable by the organization than is the principal
of the trust under the terms of the governing instrument of the trust, the
charitable organization may direct the trustee to transfer the trust assets of
the trust to the endowment fund, to be administered in implementation of the
charitable purpose or purposes of the trust.
(e) A trustee need not obtain the approval of any court in order to
terminate a trust and to transfer the trust assets as provided in this Section.
(f) The provisions of this Section are an alternative to and not in
abrogation of any other course of action provided by law. A trustee shall not
incur any civil or criminal liability by reason of acting in accordance
with this Section.
(Source: P.A. 89-575, eff. 1-1-97.)
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