HB 4254

Abstract

Amends the Trusts and Trustees Act. Provides that conversion of a trust to a total return trust may be made with a trustee and all primary beneficiaries (instead of with a trustee and all beneficiaries and presumptive remaindermen beneficiaries) in accordance with other provisions of the Act. Changes definitions and defines terms. Provides that an unascertainable beneficiary may be represented by and bound by another beneficiary having a substantially similar (instead of a substantially identical) interest on a particular question or dispute. Provides that if a trust beneficiary is an unrepresented minor, disabled, or unborn person, a parent of the beneficiary may represent and bind the beneficiary if there is no conflict of interest between the beneficiary and either of that person's parents on that particular question or dispute. Further provides that this representative may represent and bind an unborn or unascertainable beneficiary who has an interest that is substantially similar to the interest of the minor or disabled person, but only if there is no conflict of interest between the minor or the disabled person and the unborn or unascertainable person. Makes corresponding changes. In a subsection concerning nonjudicial settlement agreements, makes changes concerning the matters that may be resolved by a nonjudicial settlement agreement. Provides that if a charitable entity is a current beneficiary, is a presumptive remainder beneficiary, or has any vested interest in a trust, the parties to any proposed nonjudicial settlement agreement affecting the trust shall deliver to the Attorney General's Charitable Trust Bureau written notice of the proposed agreement at least 60 days prior to its effective date. Provides that if the Bureau objects in a writing delivered to one or more of the parties prior to the proposed effective date, the agreement shall not take effect unless the parties obtain court approval. Provides that the Section concerning virtual representation shall be construed as pertaining to the administration of any trust that is administered in this State or governed by Illinois law, unless certain conditions are met. Provides that changes made apply to all trusts in existence on the effective date and to all trusts created after that date.