IllinoisSB1667104th General Assembly (2025–2026)SenateWALLET

TRUST CODE-UNCLAIMED PROPERTY

Sponsored By: Robert F. Martwick (Democratic)

Signed by Governor

Summary

Amends the Illinois Trust Code. Requires a trustee to maintain, for a minimum of 7 years after the termination of the trust, a copy of the governing trust instrument under which the trustee was authorized to act at the time the trust terminated. Amends the Revised Uniform Unclaimed Property Act. Provides that property held in an account or plan, including a health savings account, that qualifies for tax deferral under the United States income tax law, is presumed abandoned 20 years after the account was opened. Requires State agencies to report final compensation due a State employee to the Treasurer's Office as unclaimed property if the employee dies while employed. Requires a holder who holds property presumed abandoned to hold the property in trust for the benefit of the State Treasurer on behalf of the owner from and after the date the property is presumed abandoned. Requires that the State Treasurer provide written notice to a State agency and the Governor's Office of Management and Budget of property presumed to be abandoned and allegedly owned by the State agency before it can be escheated to the State's General Revenue Fund if the property remains unclaimed after one year. Creates authority for the Secretary of the Department of Financial and Professional Regulation to order a regulated person under the Act to immediately report and remit property subject to the Act if the Secretary determines that the action is necessary to protect the interest of an owner. Establishes a procedure regulating agreements between an owner or apparent owner and a finder to locate or recover property held by the State Treasurer. Requires a finder to be licensed by the State Treasurer and creates qualifications to be so licensed. Makes definitions. Makes other changes. The Treasurer is authorized to adopt rules as necessary to implement the Act. Effective immediately.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 7 benefits, 0 costs, 1 mixed.

Trustees must search for unclaimed assets

Trustees must include unclaimed-property searches in their reasonable steps to protect trust assets and claim property when practical. Before a trust ends, the trustee must reasonably search for trust property already sent to a state unclaimed property administrator. Trustees must also keep, or arrange to keep, the governing trust document for at least 7 years after termination.

Abandoned assets must be kept separate

Once property is presumed abandoned, its holder holds it in trust for the state administrator on the owner’s behalf. The holder must use trust accounts or otherwise keep the property separate until delivery. This rule excludes property held by insurance companies. It also excludes property insured by the FDIC, NCUA, or another account insurer approved by the institution’s primary financial regulator.

Earlier state handling of dormant accounts

For covered tax-deferred accounts, including covered health savings accounts, the account-age trigger drops from 30 years to 20 years. Property is presumed abandoned after 3 unclaimed years following the earlier of the applicable required-distribution date or that 20-year mark. In year 10, holders must try contacting owners who showed no interest in the past 3 years. That contact rule applies only when the property is not already presumed abandoned. Owners can still claim property under the unclaimed property law.

Fee limits for unclaimed property recovery

Paid recovery agreements must be recorded and signed, describe the property and services, and show expected recovery before and after fees. They must explain that the state holds the property, recovery is free, and how to contact the state directly. Agreements signed from presumed abandonment through 24 months after state delivery are void; provisions assigning obligations not yet existing or owed are also void. Fees above 10% of collections are unenforceable except by the apparent owner, and transfers giving finders profits above 10% are prohibited. The future-obligation and 10% limits exclude qualifying registered CPA firms or affiliates in good standing that also provide compliance services to non-individual owners. Claims must include the full, unredacted signed agreement; the state pays the finder directly only when that agreement expressly allows it.

Deadlines for paying deceased state workers

Illinois state agencies must pay money owed to a deceased employee to the heirs or estate within 1 year of death. Agencies must report and send any remaining unpaid money to the State Treasurer within the next 90 days. The unclaimed property administrator must promptly send notice to the employee’s last known address.

State can collect abandoned property sooner

Illinois’ financial regulation secretary can order covered regulated people or businesses to report and send property immediately to protect owners. This allows transfers before the usual waiting period ends. Covered holders can also transfer property early with the secretary’s written permission and required safeguards. The authority covers those authorized by the banking or financial institutions divisions, but excludes Illinois-organized banks, savings banks, and credit unions.

Unclaimed agency assets fund state operations

Abandoned property reasonably believed to belong to a state agency transfers to Illinois’ General Revenue Fund after required notice. The administrator must first notify the agency and the Governor’s budget office. More than 1 year must pass without the agency filing a claim or expressing interest. The administrator must also give the budget office director written notice of the transfer.

Property finders face licensing and penalties

Beginning January 1, 2026, property finders must hold a current Illinois license, subject to limited attorney and CPA-firm exceptions. Applicants must meet character and legal-knowledge standards; individual applicants must be at least 21. Applications require fees, background-check authorization, and a fidelity bond set by rule at no more than $100,000. Licenses require renewal and can be denied, suspended, or revoked; unlicensed activity can face court orders to stop. Violators receive at least 7 days to answer a proposed stop order and can face penalties up to $10,000 per violation.

Sponsors & Cosponsors

Sponsor

Robert F. Martwick
Democratic • Senate

Cosponsors

Diane Blair-Sherlock
Democratic • House
Michael W. Halpin
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 164 • No: 47

House vote • 5/20/2025

Third Reading - Short Debate - Passed

Yes: 73 • No: 40

House vote • 4/30/2025

Do Pass / Short Debate Judiciary - Civil Committee;

Yes: 13 • No: 7

Senate vote • 4/10/2025

Third Reading - Passed;

Yes: 55 • No: 0

Senate vote • 4/9/2025

Senate Floor Amendment No. 5 Recommend Do Adopt Judiciary;

Yes: 8 • No: 0

Senate vote • 4/3/2025

Senate Floor Amendment No. 4 Recommend Do Adopt Judiciary;