(760 ILCS 60/1) (from Ch. 148, par. 51)
Sec. 1.
Charitable
trusts-Federal tax laws.
(1) Notwithstanding any provision to the contrary in the governing
instrument or under any other law of this State and except as otherwise
provided by court order entered after June 8, 1971, the
trustee of a trust, whenever created, which is or is treated as a private
foundation or a split-interest trust as defined in Sections 509 and 4947,
respectively, of the Internal Revenue Code of 1954, as in effect on
June 8, 1971, during the period it is, or is treated as, a
private foundation or split-interest trust as so defined:
(a) shall not engage in any act of self-dealing as defined in Section
4941(d) thereof;
(b) shall distribute the trust income for each taxable year at such time
and in such manner as not to subject the trust to the tax on undistributed
income imposed by Section 4942 thereof;
(c) shall not, if Section 4943 thereof is applicable, retain any excess
business holdings as defined in Sub-section (c) of that Section;
(d) shall not, if Section 4944 thereof is applicable, make any
investment in such manner as to subject the trust to tax under that
Section; and
(e) shall not make any taxable expenditure as defined in Section 4945(d)
thereof.
(2) The trustee of a trust, whenever created, which is, or is treated
as, a private foundation or a split-interest trust as defined in Sections
509 and 4947, respectively, of the Internal Revenue Code of 1954, as in
effect on
June 8, 1971, or would be a split-interest trust if there
were amounts in trust for which any of the deductions
specified in Section 4947(a)(2) thereof were allowed,
may amend the terms of the
governing instrument to the extent necessary to bring the trust into
conformity with the requirements for: (a) termination of private foundation
status in the manner described in Section 507(b) thereof; (b) exemption of
the trust from the taxes imposed by Sections 4941 to 4945, inclusive,
thereof, including the addition of a power to invade principal to the
extent necessary to meet the requirements of Section 4942; (c) exclusion
of the trust from private foundation status under Section 509(a)(3)
thereof, and for this latter purpose may release any power contained in the
governing instrument, may reduce or limit the charitable organizations or
classes of charitable organizations in whose favor a power to select may be
exercised and may appoint new or additional trustees;
or (d) a charitable remainder annuity trust or a
charitable remainder unitrust described in Section 664, or a
pooled income fund described in Section 642(c)(5).
If the trust is for
the benefit of one or more named charitable organizations, the trustee
shall first obtain the consent of those organizations before making any
amendment under subparagraph (c)
or subparagraph (d); and the trustee before making any
amendment under subparagraph (d) shall first obtain the
consent of all noncharitable beneficiaries whose interests
have not expired.
(Source: P.A. 79-1365.)
|