93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4389


 
Introduced 02/03/04, by Randall M. Hultgren
 
SYNOPSIS AS INTRODUCED:
 		














760 ILCS 5/4.20
  from Ch. 17, par. 1674







    Amends the Trusts and Trustees Act. Adds a trust, created prior to the time the distribution becomes payable, for the sole benefit of the beneficiary and those dependent upon the beneficiary to the list to which a trustee may distribute income or amounts of principal in the case of a beneficiary who is unable to manage his affairs or who is under a legal disability. Effective immediately.



















LRB093 18305 LCB 44010 b




















 


 


A BILL FOR









 














HB4389

LRB093 18305 LCB 44010 b









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    AN ACT concerning trusts.

 
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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 Trusts and Trustees Act is amended  by 
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changing Section 4.20 as follows:
 



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    (760 ILCS 5/4.20)  (from Ch. 17, par. 1674)



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    Sec. 4.20. To distribute income and discretionary amounts 
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of principal in such one
or more of the following ways as the 
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trustee believes to be for the best
interests of any 
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beneficiary who at the time of distribution is under legal

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disability or in the opinion of the trustee is unable properly 
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to manage
his affairs because of illness, physical or mental 
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disability or any other
cause:

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    (a) directly to the beneficiary;

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    (b) to a duly appointed guardian of the beneficiary;

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    (c) to a custodian for the beneficiary under the Uniform 
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Transfers to Minors
Act;

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    (d) to an adult relative of the beneficiary;

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    (e) by expending the money or using the property directly 
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for the
benefit of the beneficiary;
and the trustee is not 
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required to see to the application of any
distribution so made; 
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and .
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    (f) to a trust, created prior to the time the distribution 
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becomes payable, for the sole benefit of the beneficiary and 
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those dependent upon the beneficiary during his or her 
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lifetime, to be administered as a part thereof, except that any 
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amounts distributed to the trust pursuant to this paragraph (f) 
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shall be separately accounted  for by the trustee of the trust 
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and shall be indefeasibly vested in the beneficiary so that if 
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the beneficiary dies  prior to complete distribution of such 
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amounts, the amounts and the accretions, earnings, and income 
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thereon, if any, shall be paid to the beneficiary's estate; 
 


 









HB4389
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LRB093 18305 LCB 44010 b







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provided, however, that this paragraph (f) shall not apply to 
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the extent that it would cause a trust otherwise qualifying for 
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the federal estate tax marital deduction not to so qualify.


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(Source: P.A. 84-915.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.