[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
90_HB1619sam001
LRB9003933SMdvam01
1 AMENDMENT TO HOUSE BILL 1619
2 AMENDMENT NO. . Amend House Bill 1619 on page 1, by
3 replacing line 1 with the following:
4 "AN ACT concerning rights and remedies, amending named
5 Acts."; and
6 on page 7, below line 33, by inserting the following:
7 "Section 10. The Statute Concerning Perpetuities is
8 amended by changing Sections 3 and 4 as follows:
9 (765 ILCS 305/3) (from Ch. 30, par. 193)
10 Sec. 3. Definitions and Terms.
11 As used in this Act unless the context otherwise
12 requires:
13 (a) "Trust" means any trust created by any written
14 instrument, including, without limitation, a trust created in
15 the exercise of a power of appointment.
16 (a-5) "Qualified perpetual trust" means any trust:
17 (i) to which, by the specific terms governing the
18 trust, the rule against perpetuities does not apply; and
19 (ii) of which the trustee (or other person to whom
20 the power is properly granted or delegated) has the power
21 in the trust document or under any provision of law to
-2- LRB9003933SMdvam01
1 sell, lease, or mortgage property for any period of time
2 beyond the period of the rule against perpetuities.
3 (b) "Trustee" includes the original trustee of any trust
4 and also any succeeding or added trustee.
5 (c) "Instrument" means any writing pursuant to which any
6 legal or equitable interest in property or in the income
7 therefrom is affected, disposed of or created.
8 (d) "Beneficiary" includes any person to whom any
9 interest, whether vested or contingent, is given by an
10 instrument.
11 (e) Any reference in this Act to income to be "paid" or
12 to income "payments" or to "receiving" income includes income
13 payable or distributable to or applicable for the benefit of
14 a beneficiary.
15 (f) Words importing the masculine gender include the
16 feminine and neuter, and words importing the singular number
17 include the plural and words importing the plural number
18 include the singular.
19 (Source: P.A. 76-1428.)
20 (765 ILCS 305/4) (from Ch. 30, par. 194)
21 Sec. 4. Application of the Rule Against Perpetuities.
22 (a) The rule against perpetuities shall not apply:
23 (1) to any disposition of property or interest therein
24 which, at the effective date of this Act, does not violate,
25 or is exempted by statute from the operation of, the common
26 law rule against perpetuities;
27 (2) to powers of a trustee to sell, lease or mortgage
28 property or to powers which relate to the administration or
29 management of trust assets, including, without limitation,
30 discretionary powers of a trustee to determine what receipts
31 constitute principal and what receipts constitute income and
32 powers to appoint a successor trustee;
33 (3) to mandatory powers of a trustee to distribute
-3- LRB9003933SMdvam01
1 income, or to discretionary powers of a trustee to distribute
2 principal prior to termination of a trust, to a beneficiary
3 having an interest in the principal which is irrevocably
4 vested in quality and quantity;
5 (4) to discretionary powers of a trustee to allocate
6 income and principal among beneficiaries, but no exercise of
7 any such power after the expiration of the period of the rule
8 against perpetuities is valid;
9 (5) to leases to commence in the future or upon the
10 happening of a future event, but no such lease shall be valid
11 unless the term thereof actually commences in possession
12 within 40 years from the date of execution of the lease;
13 (6) to commitments (A) by a lessor to enter into a lease
14 with a subtenant or with the holder of a leasehold mortgage
15 or (B) by a lessee or sublessee to enter into a lease with
16 the holder of a mortgage; nor
17 (7) to options in gross or to preemptive rights in the
18 nature of a right of first refusal, but no option in gross
19 shall be valid for more than 40 years from the date of its
20 creation; or
21 (8) to qualified perpetual trusts created by will or
22 inter-vivos agreement executed or amended on or after January
23 1, 1998, or to qualified perpetual trusts created by exercise
24 of a power of appointment granted under instruments executed
25 or amended on or after January 1, 1998.
26 (b) The period of the rule against perpetuities shall
27 not commence to run in connection with any disposition of
28 property or interest therein, and no instrument shall be
29 regarded as becoming effective for purposes of the rule
30 against perpetuities, and no interest or power shall be
31 deemed to be created for purposes of the rule against
32 perpetuities as long as, by the terms of the instrument, the
33 maker of the instrument has the power to revoke the
34 instrument or to transfer or direct to be transferred to
-4- LRB9003933SMdvam01
1 himself the entire legal and equitable ownership of the
2 property or interest therein.
3 (c) In determining whether an interest violates the rule
4 against perpetuities:
5 (1) it shall be presumed (A) that the interest was
6 intended to be valid, (B) in the case of an interest
7 conditioned upon the probate of a will, the appointment of an
8 executor, administrator or trustee, the completion of the
9 administration of an estate, the payment of debts, the sale
10 or distribution of property, the determination of federal or
11 state tax liabilities or the happening of any administrative
12 contingency, that the contingency must occur, if at all,
13 within the period of the rule against perpetuities, and (C)
14 where the instrument creates an interest in the "widow",
15 "widower", or "spouse" of another person, that the maker of
16 the instrument intended to refer to a person who was living
17 at the date that the period of the rule against perpetuities
18 commences to run;
19 (2) where any interest, but for this subparagraph (c)
20 (2), would be invalid because it is made to depend upon any
21 person attaining or failing to attain an age in excess of 21
22 years, the age specified shall be reduced to 21 years as to
23 every person to whom the age contingency applies;
24 (3) if, notwithstanding the provisions of subparagraphs
25 (c) (1) and (2) of this Section, the validity of any interest
26 depends upon the possibility of the birth or adoption of a
27 child, (A) no person shall be deemed capable of having a
28 child until he has attained the age of 13 years, (B) any
29 person who has attained the age of 65 years shall be deemed
30 incapable of having a child, (C) evidence shall be admissible
31 as to the incapacity of having a child by a living person who
32 has not attained the age of 65 years, and (D) the possibility
33 of having a child or more remote descendant by adoption shall
34 be disregarded.
-5- LRB9003933SMdvam01
1 (d) Subparagraphs (a) (2), (3) and (6) and paragraph (b)
2 of this Section shall be deemed to be declaratory of the law
3 prevailing in this State at the effective date of this Act.
4 (Source: P.A. 76-1428.)
5 Section 15. The Trust Accumulation Act is amended by
6 changing Section 1 as follows:
7 (765 ILCS 315/1) (from Ch. 30, par. 153)
8 Sec. 1. No person shall, after this Act goes into effect,
9 by any deed, will, agreement or otherwise, settle or dispose
10 of any real or personal property, so and in such manner,
11 either expressly or by implication, that the income thereof
12 shall be wholly or partially accumulated for any longer term
13 after the effective date of such settlement or disposition
14 than a life or lives in being at that date and 21 years
15 beyond; and in every case where any accumulation shall be
16 directed otherwise, such direction shall be null and void,
17 and the income of such property so directed to be
18 accumulated, shall, so long as the same shall be directed to
19 be accumulated contrary to the provisions of this Act, go to
20 and be received by the person in whom the beneficial interest
21 in the corpus of the estate from which such income was
22 derived is vested. This Section does not apply to trusts to
23 which Section 5 of the Statute Concerning Perpetuities
24 applies, to qualified perpetual trusts as defined in Section
25 3 of the Statute Concerning Perpetuities, to trusts created
26 for the purpose of care of burial places, or to trusts
27 created as part of a plan for the benefit of some or all of
28 the employes of one or more employers, including but without
29 limitation, a stock bonus, pension, disability, death
30 benefit, profit sharing, unemployment benefit or other plan,
31 for the purpose of distributing for the benefit of such
32 employes, including their beneficiaries, the earnings or the
-6- LRB9003933SMdvam01
1 principal, or both earnings and principal, of the fund so
2 held in trust. Nothing in this Act shall be deemed to affect
3 or modify in any manner the rule of property known as the
4 "rule against perpetuities". For purposes of this Act no
5 settlement or disposition shall be deemed effective as long
6 as, by the terms of the instrument creating it, the maker of
7 the instrument has the power to revoke the instrument or to
8 transfer or direct to be transferred to himself the entire
9 legal and equitable ownership of the property which is the
10 subject matter of the settlement or disposition.
11 The amendatory Act of 1953 applies only to deeds or
12 agreements inter vivos which become legally effective on or
13 after July 1, 1953, and only to wills of testators dying on
14 or after such date.
15 The amendatory Act of 1957 applies only to instruments
16 which become effective after July 1, 1957.
17 This amendatory Act of 1969 applies only to instruments
18 which become effective after the effective date of this
19 amendatory Act of 1969, but the last sentence of the first
20 paragraph of this amendatory Act of 1969 shall be deemed to
21 be declaratory of the law prevailing in this state at the
22 effective date of this amendatory Act of 1969.
23 (Source: P.A. 76-1427.)".