96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1621


 
Introduced 2/19/2009, by Sen. Terry Link
 
SYNOPSIS AS INTRODUCED:
 		








    



205 ILCS 625/3
  from Ch. 17, par. 2133


205 ILCS 625/4
  from Ch. 17, par. 2134







    Amends the Illinois Trust and Payable on Death Accounts Act. Provides that in order to take under the trust or payable on death account, a beneficiary that is not a natural person must be in lawful existence at the time of the death of the last surviving trustee. Effective immediately.
















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A BILL FOR









 











SB1621

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    AN ACT concerning financial regulation.

 
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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 Illinois Trust and Payable on Death Accounts 
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Act is amended  by changing Sections 3 and 4 as follows:
 



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    (205 ILCS 625/3)  (from Ch. 17, par. 2133)



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    Sec. 3. Trust Account Incidents. If one or more persons 
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opening or
holding an account sign an agreement with the 
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institution providing that
the account shall be held in the 
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name of a person or persons designated as
trustee or trustees 
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for one or more persons designated as a beneficiary or

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beneficiaries, the account and any balance therein which exists 
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from time
to time shall be held as a trust account and unless 
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otherwise agreed in
writing between the person or persons 
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opening or holding the account and the institution:

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    (a) If two or more persons are designated trustees of the 
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account, as
between them they shall hold the account and all 
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balances therein which
exist from time to time as joint tenants 
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with right of survivorship and not
as tenants in common;

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    (b) Any trustee during his or her lifetime may change any 
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of the
designated beneficiaries without the knowledge or 
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consent of the other
trustees or the beneficiaries by a written 
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instrument accepted by the institution;

 


 






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    (c) Any trustee may make additional deposits to and 
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withdraw any part or
all of the account at any time without the 
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knowledge or consent of the
other trustees or the 
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beneficiaries, subject to the bylaws and regulations
of the 
5
institution, and all withdrawals shall constitute a revocation 
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of the
agreement as to the amount withdrawn; and

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    (d) Upon the death of the last surviving trustee the person 
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designated
as the beneficiary (i) who is then living, if the 
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beneficiary is a natural person, or (ii) that maintains a 
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lawful existence under the state or federal authority pursuant 
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to which it was organized, if the beneficiary is an 
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organization and not a natural person, shall be the sole holder 
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of the
account, unless more than one beneficiary is named and 
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is then living or maintains a lawful existence in which
case 
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said beneficiaries shall hold the account in equal shares as 
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tenants
in common.  If no beneficiary is then living or 
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maintains a lawful existence, the proceeds shall vest in
the 
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estate of the last surviving trustee.

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(Source: P.A. 84-461.)

 



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    (205 ILCS 625/4)  (from Ch. 17, par. 2134)



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    Sec. 4. Payable on Death Account Incidents. If one or more 
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persons opening
or
holding an account sign an agreement with 
23
the institution
providing that
on the death of the
last 
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surviving person designated as holder the account shall be paid

25
to or held by another person or persons, the account, and any 
 


 






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balance
therein which exists from time to time, shall be held 
2
as a payment on death
account and unless otherwise agreed in 
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writing between the person or
persons opening
or holding the 
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account and the institution:

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    (a) Any holder during his or her lifetime may change any of 
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the
designated persons to own the account at the death of the

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last surviving holder without the
knowledge or consent of any 
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other holder or the designated persons
by a
written instrument

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accepted by the institution;

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    (b) Any holder may make additional deposits to and withdraw 
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any
part or
all of the account at any time without the 
12
knowledge or consent of any other
holder or the
designated 
13
person or persons to own the account at the death
of the last 
14
surviving holder,
subject to the bylaws and regulations of the 
15
institution, and all
withdrawals shall constitute a revocation 
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of the agreement as to the amount
withdrawn; and

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    (c) Upon the death of the last surviving holder of the 
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account (i), the
person so
designated to be the owner of the 
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account who is then living, if the beneficiary is a natural 
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person, or (ii) that maintains a lawful existence under the 
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state or federal authority pursuant to which it was organized, 
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if the beneficiary is an organization and not a natural person, 
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shall be the
sole owner of the account, unless more than one 
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person is so designated and
is then living or maintains a 
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lawful existence in which case those persons shall hold the 
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account in
equal
shares as tenants in common with no right of 
 


 






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survivorship as between those
persons.  If no person designated 
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as the owner of the
account on the death of the last surviving 
3
holder is then living or maintains a lawful existence, the

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proceeds shall vest
in the estate of the last surviving holder 
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of the account.

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(Source: P.A. 92-285, eff. 1-1-02.)

 

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