State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]


[ Engrossed ][ Enrolled ]

90_HB1779

      755 ILCS 5/11-13          from Ch. 110 1/2, par. 11-13
      755 ILCS 5/11a-18         from Ch. 110 1/2, par. 11a-18
          Amends the Probate Act in the  Article  regarding  minors
      and  the  Article  regarding  guardians  for disabled adults.
      Provides that, without impairing the power of the  court,  if
      the  guardian  of  the  estate of a ward or minor and another
      person as next friend represent the ward  or  guardian  in  a
      legal  action in which the attorney representing the guardian
      and next friend is  paid  on  a  contingent  fee  basis,  the
      guardian  of  the estate shall not participate in or have any
      duty to review the prosecution of the action, its settlement,
      or the award of attorney's fees. Effective immediately.
                                                     LRB9004022SMdv
                                               LRB9004022SMdv
 1        AN ACT to amend the  Probate  Act  of  1975  by  changing
 2    Sections 11-13 and 11a-18.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.   The  Probate  Act  of  1975  is  amended  by
 6    changing Sections 11-13 and 11a-18 as follows:
 7        (755 ILCS 5/11-13) (from Ch. 110 1/2, par. 11-13)
 8        Sec.  11-13.   Duties  of  guardian of a minor.  Before a
 9    guardian of a minor may act, the guardian shall be  appointed
10    by  the  court  of  the  proper  county and, in the case of a
11    guardian of the minor's estate, the guardian shall  give  the
12    bond  prescribed  in  Section  12-2.   Except  as provided in
13    Section 11-13.1 and  Section  11-13.2  with  respect  to  the
14    standby  or short-term guardian of the person of a minor, the
15    court shall have control over the person and  estate  of  the
16    ward.  Under the direction of the court:
17        (a)  The  guardian  of the person shall have the custody,
18    nurture and tuition and shall provide education of  the  ward
19    and  of  his  children,  but  the  ward's  spouse  may not be
20    deprived  of  the  custody  and  education  of  the  spouse's
21    children, without consent of the  spouse,  unless  the  court
22    finds  that  the  spouse is not a fit and competent person to
23    have such custody and education.  If  the  ward's  estate  is
24    insufficient  to  provide  for  the  ward's education and the
25    guardian of his person fails to provide education, the  court
26    may  award  the  custody of the ward to some other person for
27    the purpose of providing education.   If  a  person  makes  a
28    settlement  upon or provision for the support or education of
29    a ward and if either parent of the ward is  dead,  the  court
30    may  make  such  order  for the visitation of the ward by the
31    person making the settlement or provision as the court  deems
                            -2-                LRB9004022SMdv
 1    proper.
 2        (b)  The  guardian  or other representative of the ward's
 3    estate shall have the care, management and investment of  the
 4    estate,  shall manage the estate frugally and shall apply the
 5    income and principal of the estate so far  as  necessary  for
 6    the  comfort  and suitable support and education of the ward,
 7    his children, and persons related by blood  or  marriage  who
 8    are  dependent  upon  or entitled to support from him, or for
 9    any other purpose which the court deems to be  for  the  best
10    interests  of  the ward, and the court may approve the making
11    on behalf of  the  ward  of  such  agreements  as  the  court
12    determines   to  be  for  the  ward's  best  interests.   The
13    representative may make disbursement of his ward's funds  and
14    estate  directly  to the ward or other distributee or in such
15    other manner and in such amounts as the  court  directs.   If
16    the  estate  of  a  ward  is derived in whole or in part from
17    payments of  compensation,  adjusted  compensation,  pension,
18    insurance  or  other  similar  benefits  made directly to the
19    estate  by  the  Veterans  Administration,  notice   of   the
20    application for leave to invest or expend the ward's funds or
21    estate,  together  with  a  copy of the petition and proposed
22    order,  shall  be  given  to  the  Veterans'   Administration
23    Regional  Office  in  this  State  at least 7 days before the
24    hearing on the application.
25        (c)  Upon the direction of the  court  which  issued  his
26    letters  a  representative  may  perform the contracts of his
27    ward which  were  legally  subsisting  at  the  time  of  the
28    commencement  of  the  guardianship.  The court may authorize
29    the guardian to execute and deliver any bill of sale, deed or
30    other instrument.
31        (d)  The representative of the estate  of  a  ward  shall
32    appear  for  and  represent the ward in all legal proceedings
33    unless another  person  is  appointed  for  that  purpose  as
34    representative  or  next  friend.   This  does not impair the
                            -3-                LRB9004022SMdv
 1    power of any court to appoint a representative or next friend
 2    to defend the interests of the ward  in  that  court,  or  to
 3    appoint  or  allow any person as the next friend of a ward to
 4    commence, prosecute or defend any proceeding in  his  behalf.
 5    Any  proceeding  on  behalf  of  a minor may be commenced and
 6    prosecuted by his next friend, without any previous authority
 7    or appointment by the court if the next  friend  enters  bond
 8    for  costs  and files it in the court where the proceeding is
 9    pending. Without impairing the power  of  the  court  in  any
10    respect,  if  the representative of the estate of a minor and
11    another person as next friend shall appear for and  represent
12    the  minor in a legal proceeding in which the compensation of
13    the attorney or attorneys representing the guardian and  next
14    friend   is   solely   determined   under  a  contingent  fee
15    arrangement, the guardian of the estate of  the  minor  shall
16    not participate in or have any duty to review the prosecution
17    of   the   action,   to   participate   in   or   review  the
18    appropriateness of  any  settlement  of  the  action,  or  to
19    participate   in   or   review   any   determination  of  the
20    appropriateness of  any  fees  awarded  to  the  attorney  or
21    attorneys employed in the prosecution of the action.
22        (e)  Upon  petition  by  any interested person (including
23    the standby or short-term  guardian),  with  such  notice  to
24    interested  persons as the court directs and a finding by the
25    court that it is in the best interest of the minor, the court
26    may  terminate  or  limit  the  authority  of  a  standby  or
27    short-term guardian or may enter such  other  orders  as  the
28    court deems necessary to provide for the best interest of the
29    minor.   The  petition  for  termination or limitation of the
30    authority of a standby or short-term guardian may,  but  need
31    not, be combined with a petition to have a guardian appointed
32    for the minor.
33    (Source: P.A. 88-529.)
                            -4-                LRB9004022SMdv
 1        (755 ILCS 5/11a-18) (from Ch. 110 1/2, par. 11a-18)
 2        Sec. 11a-18.  Duties of the estate guardian.
 3        (a)  To  the  extent  specified in the order establishing
 4    the guardianship, the guardian of the estate shall  have  the
 5    care,  management  and investment of the estate, shall manage
 6    the estate frugally and shall apply the income and  principal
 7    of  the  estate  so  far  as  necessary  for  the comfort and
 8    suitable support and education of the  ward,  his  minor  and
 9    adult  dependent  children,  and  persons related by blood or
10    marriage who are dependent upon or entitled to  support  from
11    him, or for any other purpose which the court deems to be for
12    the best interests of the ward, and the court may approve the
13    making  on behalf of the ward of such agreements as the court
14    determines to be for the ward's best interests. The  guardian
15    may make disbursement of his ward's funds and estate directly
16    to  the ward or other distributee or in such other manner and
17    in such amounts as the court directs.  If  the  estate  of  a
18    ward  is  derived  in  whole  or  in  part  from  payments of
19    compensation, adjusted compensation,  pension,  insurance  or
20    other  similar  benefits  made  directly to the estate by the
21    Veterans Administration, notice of the application for  leave
22    to invest or expend the ward's funds or estate, together with
23    a  copy of the petition and proposed order, shall be given to
24    the Veterans' Administration Regional Office in this State at
25    least 7 days before the hearing on the application.
26        (a-5)  The probate court, upon petition  of  a  guardian,
27    other  than  the guardian of a minor, and after notice to all
28    other persons interested as the court directs, may  authorize
29    the  guardian  to  exercise any or all powers over the estate
30    and business affairs of the ward that the ward could exercise
31    if present and not under disability.  The court may authorize
32    the taking of an action  or  the  application  of  funds  not
33    required  for  the  ward's current and future maintenance and
34    support in any manner approved  by  the  court  as  being  in
                            -5-                LRB9004022SMdv
 1    keeping  with  the  ward's  wishes  so  far  as  they  can be
 2    ascertained. The court must consider the  permanence  of  the
 3    ward's  disabling  condition  and  the natural objects of the
 4    ward's bounty. In ascertaining and carrying  out  the  ward's
 5    wishes  the  court may consider, but shall not be limited to,
 6    minimization  of  State  or  federal   income,   estate,   or
 7    inheritance   taxes;   and   providing  gifts  to  charities,
 8    relatives, and friends that would  be  likely  recipients  of
 9    donations  from the ward.  The ward's wishes as best they can
10    be ascertained shall be  carried  out,  whether  or  not  tax
11    savings  are  involved.  Actions or applications of funds may
12    include, but shall not be limited to, the following:
13             (1)  making gifts of income or principal,  or  both,
14        of the estate, either outright or in trust;
15             (2)  conveying, releasing, or disclaiming his or her
16        contingent and expectant interests in property, including
17        marital  property  rights  and  any right of survivorship
18        incident to joint tenancy or tenancy by the entirety;
19             (3)  releasing or disclaiming his or her  powers  as
20        trustee,  personal  representative, custodian for minors,
21        or guardian;
22             (4)  exercising, releasing, or  disclaiming  his  or
23        her powers as donee of a power of appointment;
24             (5)  entering into contracts;
25             (6)  creating for the benefit of the ward or others,
26        revocable  or  irrevocable  trusts of his or her property
27        that may extend beyond his or her disability or life.
28             (7)  exercising options of the ward to  purchase  or
29        exchange securities or other property;
30             (8)  exercising  the  rights  of  the  ward to elect
31        benefit or  payment  options,  to  terminate,  to  change
32        beneficiaries  or ownership, to assign rights, to borrow,
33        or to receive cash value in return  for  a  surrender  of
34        rights under any one or more of the following:
                            -6-                LRB9004022SMdv
 1                  (i)  Life   insurance   policies,   plans,   or
 2             benefits.
 3                  (ii)  Annuity policies, plans, or benefits.
 4                  (iii)  Mutual    fund    and   other   dividend
 5             investment plans.
 6                  (iv)  Retirement, profit sharing, and  employee
 7             welfare plans and benefits;
 8             (9)  exercising   his  or  her  right  to  claim  or
 9        disclaim an elective share in the estate of  his  or  her
10        deceased  spouse  and to renounce any interest by testate
11        or intestate succession or by inter vivos transfer;
12             (10)  changing the ward's residence or domicile; or
13             (11)  modifying  by  means  of  codicil   or   trust
14        amendment  the  terms of the ward's will or any revocable
15        trust created by the ward,  as  the  court  may  consider
16        advisable in light of changes in applicable tax laws. The
17        guardian in his or her petition shall briefly outline the
18        action  or application of funds for which he or she seeks
19        approval,  the  results  expected  to   be   accomplished
20        thereby, and the tax savings, if any, expected to accrue.
21        The  proposed  action or application of funds may include
22        gifts of the ward's personal property or real estate, but
23        transfers  of  real  estate  shall  be  subject  to   the
24        requirements of Section 20 of this Act.  Gifts may be for
25        the  benefit  of prospective legatees, devisees, or heirs
26        apparent of the ward or may be  made  to  individuals  or
27        charities  in  which  the  ward  is  believed  to have an
28        interest.   The  guardian  shall  also  indicate  in  the
29        petition that any planned disposition is consistent  with
30        the  intentions  of  the  ward  insofar  as  they  can be
31        ascertained, and  if  the  ward's  intentions  cannot  be
32        ascertained, the ward will be presumed to favor reduction
33        in  the  incidents  of  various forms of taxation and the
34        partial distribution of his or her estate as provided  in
                            -7-                LRB9004022SMdv
 1        this  subsection.   The  guardian  shall not, however, be
 2        required to include as a  beneficiary  or  fiduciary  any
 3        person  who he has reason to believe would be excluded by
 4        the ward.  A guardian shall be  required  to  investigate
 5        and   pursue   a   ward's  eligibility  for  governmental
 6        benefits.
 7        (b)  Upon the direction of the  court  which  issued  his
 8    letters,  a  guardian  may  perform the contracts of his ward
 9    which were legally subsisting at the time of the commencement
10    of the  ward's  disability.   The  court  may  authorize  the
11    guardian  to  execute  and  deliver any bill of sale, deed or
12    other instrument.
13        (c)  The guardian of the estate of a  ward  shall  appear
14    for  and  represent  the ward in all legal proceedings unless
15    another person is appointed for that purpose as  guardian  or
16    next  friend.  This does not impair the power of any court to
17    appoint a guardian ad litem or  next  friend  to  defend  the
18    interests  of  the ward in that court, or to appoint or allow
19    any person  as  the  next  friend  of  a  ward  to  commence,
20    prosecute  or  defend  any  proceeding in his behalf. Without
21    impairing the power of the  court  in  any  respect,  if  the
22    guardian  of  the estate of a ward and another person as next
23    friend shall appear for and represent the  ward  in  a  legal
24    proceeding  in  which  the  compensation  of  the attorney or
25    attorneys representing the guardian and next friend is solely
26    determined under a contingent fee arrangement,  the  guardian
27    of  the  estate  of the ward shall not participate in or have
28    any  duty  to  review  the  prosecution  of  the  action,  to
29    participate  in  or  review  the   appropriateness   of   any
30    settlement  of the action, or to participate in or review any
31    determination of the appropriateness of any fees  awarded  to
32    the  attorney or attorneys employed in the prosecution of the
33    action.
34        (d)  Adjudication  of  disability  shall  not  revoke  or
                            -8-                LRB9004022SMdv
 1    otherwise terminate a trust which is revocable by  the  ward.
 2    A  guardian of the estate shall have no authority to revoke a
 3    trust that is revocable by the ward, except  that  the  court
 4    may  authorize a guardian to revoke a Totten trust or similar
 5    deposit or withdrawable  capital  account  in  trust  to  the
 6    extent  necessary to provide funds for the purposes specified
 7    in paragraph (a) of this Section.   If  the  trustee  of  any
 8    trust  for the benefit of the ward has discretionary power to
 9    apply income or principal for the ward's benefit, the trustee
10    shall not be required to distribute  any  of  the  income  or
11    principal  to  the  guardian  of  the  ward's estate, but the
12    guardian may bring an action on behalf of the ward to  compel
13    the  trustee  to exercise the trustee's discretion or to seek
14    relief from an abuse of discretion.  This paragraph shall not
15    limit the right of  a  guardian  of  the  estate  to  receive
16    accountings from the trustee on behalf of the ward.
17        (e)  Absent  court  order pursuant to the "Illinois Power
18    of  Attorney  Act"  enacted  by  the  85th  General  Assembly
19    directing a guardian to  exercise  powers  of  the  principal
20    under  an  agency that survives disability, the guardian will
21    have no power, duty or liability with respect to any property
22    subject to the agency.  This subsection (e)  applies  to  all
23    agencies, whenever and wherever executed.
24    (Source: P.A. 89-672, eff. 8-14-96.)
25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.

[ Top ]