Chapter 760 — TRUSTS AND FIDUCIARIES

(760 ILCS 3/1209) Sec. 1209. Court involvement. (a) On application of an authorized fiduciary, a person entitled to notice under Section 1207(c), a beneficiary, or, with respect to a charitable interest, the Attorney General or any other person that has standing to enforce the ch…

(760 ILCS 3/1210) Sec. 1210. Formalities. An exercise of the decanting power must be made in a record signed by an authorized fiduciary. The signed record must, directly or by reference to the notice required by Section 1207, identify the first trust and the second trust or trust…

(760 ILCS 3/1211) Sec. 1211. Decanting power under expanded distributive discretion. (a) In this Section: (1) "Noncontingent" right means a right that is not subject to the exercise of discretion or the occurrence of a specified event that is not certain to occur. The term does n…

(760 ILCS 3/1212) Sec. 1212. Decanting power under limited distributive discretion. (a) In this Section, "limited distributive discretion" means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard. (b) An authorized…

(760 ILCS 3/1213) Sec. 1213. Trust for beneficiary with disability. (a) In this Section: (1) "Beneficiary with a disability" means a beneficiary of the first trust who the special-needs fiduciary believes may qualify for governmental benefits based on disability, whether or not t…

(760 ILCS 3/1214) Sec. 1214. Protection of charitable interests. (a) In this Section: (1) "Determinable charitable interest" means a charitable interest that is a right to a mandatory distribution currently, periodically, on the occurrence of a specified event, or after the passa…

(760 ILCS 3/1215) Sec. 1215. Trust limitation on decanting. (a) An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of: (1) the decanting power; or (2) a power granted by state law to the fiduciary to …

(760 ILCS 3/1216) Sec. 1216. Change in compensation. (a) If a first-trust instrument specifies an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation beyond the specified compensation unless: (1) all qua…

(760 ILCS 3/1217) Sec. 1217. Relief from liability and indemnification. (a) Except as otherwise provided in this Section, a second-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument. (b) …

(760 ILCS 3/1218) Sec. 1218. Removal or replacement of authorized fiduciary. An authorized fiduciary may not exercise the decanting power to modify a provision in the first-trust instrument granting another person power to remove or replace the fiduciary unless: (1) the person ho…

(760 ILCS 3/1219) Sec. 1219. Tax-related limitations. (a) In this Section: (1) "Grantor trust" means a trust as to which a settlor of a first trust is considered the owner under Sections 671 through 677 of the Internal Revenue Code or Section 679 of the Internal Revenue Code. (2)…

(760 ILCS 3/1220) Sec. 1220. Duration of second trust. (a) Subject to subsection (b), a second trust may have a duration that is the same as or different from the duration of the first trust. (b) To the extent that property of a second trust is attributable to property of the fir…

(760 ILCS 3/1221) Sec. 1221. Need to distribute not required. An authorized fiduciary may exercise the decanting power whether or not under the first trust's discretionary distribution standard the fiduciary would have made or could have been compelled to make a discretionary dis…

(760 ILCS 3/1222) Sec. 1222. Savings provision. (a) If exercise of the decanting power would be effective under this Article except that the second-trust instrument in part does not comply with this Article, the exercise of the power is effective and the following rules apply to …

(760 ILCS 3/1223) Sec. 1223. Trust for care of animal. (a) In this Section: (1) "Animal trust" means a trust or an interest in a trust created to provide for the care of one or more designated domestic or pet animals. (2) "Protector" means a person described in paragraph (3) of s…

(760 ILCS 3/1224) Sec. 1224. (Reserved). (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1225) Sec. 1225. Settlor. (a) For purposes of the laws of this State other than this Article and subject to subsection (b), a settlor of a first trust is deemed to be the settlor of the second trust with respect to the portion of the principal of the first trust subje…

(760 ILCS 3/1226) Sec. 1226. Later-discovered property. (a) Except as otherwise provided in subsection (c), if exercise of the decanting power was intended to distribute all the principal of the first trust to one or more second trusts, later-discovered property otherwise belongi…

(760 ILCS 3/1227) Sec. 1227. Obligations. A debt, liability, or other obligation enforceable against property of a first trust is enforceable to the same extent against that property when held by the second trust after exercise of the decanting power. (Source: P.A. 101-48, eff. 1…

(760 ILCS 3/1301) Sec. 1301. Article title. This Article may be referred to as the Uniform Powers of Appointment Law. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1302) Sec. 1302. Definitions. In this Article: (1) "Appointee" means a person to which a powerholder makes an appointment of appointive property. (2) (Blank). (3) "Blanket-exercise clause" means a clause in an instrument that exercises a power of appointment and is no…

(760 ILCS 3/1303) Sec. 1303. Governing law. Unless the terms of the instrument creating a power of appointment manifest a contrary intent: (1) the creation, revocation, or amendment of the power is governed by the law of the donor's domicile at the relevant time; and (2) the exer…

(760 ILCS 3/1304) Sec. 1304. Creation of power of appointment. (a) A power of appointment is created only if: (1) the instrument creating the power: (A) is valid under applicable law; and (B) except as otherwise provided in subsection (b), transfers the appointive property; and (…

(760 ILCS 3/1305) Sec. 1305. Nontransferability. A powerholder may not transfer a power of appointment. If the powerholder dies without exercising or releasing the power, the power lapses. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1306) Sec. 1306. Presumption of unlimited authority. Subject to Section 1308, and unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is: (1) presently exercisable; (2) exclusionary; and (3) except as otherwise prov…

(760 ILCS 3/1307) Sec. 1307. Exception to presumption of unlimited authority. Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is nongeneral if: (1) the power is exercisable only at the powerholder's death; and (2) the permi…

(760 ILCS 3/1308) Sec. 1308. Rules of classification. (a) In this Section, "adverse party" means a person with a substantial beneficial interest in property that would be affected adversely by a powerholder's exercise or nonexercise of a power of appointment in favor of the power…

(760 ILCS 3/1309) Sec. 1309. Power to revoke or amend. A donor may revoke or amend a power of appointment only to the extent that: (1) the instrument creating the power is revocable by the donor; or (2) the donor reserves a power of revocation or amendment in the instrument creat…

(760 ILCS 3/1310) Sec. 1310. Requisites for exercise of power of appointment. A power of appointment is exercised only: (1) if the instrument exercising the power is valid under applicable law; (2) if the terms of the instrument exercising the power: (A) manifest the powerholder'…

(760 ILCS 3/1311) Sec. 1311. Intent to exercise: determining intent from residuary clause. (a) In this Section: (1) "Residuary clause" does not include a residuary clause containing a blanket-exercise clause or a specific-exercise clause. (2) "Will" includes a codicil and a testa…

(760 ILCS 3/1312) Sec. 1312. Intent to exercise: after-acquired power. Unless the terms of the instrument exercising a power of appointment manifest a contrary intent: (1) except as otherwise provided in paragraph (2), a blanket-exercise clause extends to a power acquired by the …

(760 ILCS 3/1313) Sec. 1313. Substantial compliance with donor-imposed formal requirement. A powerholder's substantial compliance with a formal requirement of an appointment imposed by the donor, including a requirement that the instrument exercising the power of appointment make…

(760 ILCS 3/1314) Sec. 1314. Permissible appointment. (a) A powerholder of a general power of appointment that permits appointment to the powerholder or the powerholder's estate may make any appointment, including an appointment in trust or creating a new power of appointment, th…

(760 ILCS 3/1315) Sec. 1315. Appointment to deceased appointee. Subject to Section 4-11 of the Probate Act of 1975, an appointment to a deceased appointee is ineffective. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1316) Sec. 1316. Impermissible appointment. (a) Except as otherwise provided in Section 1315, an exercise of a power of appointment in favor of an impermissible appointee is ineffective. (b) An exercise of a power of appointment in favor of a permissible appointee is …

(760 ILCS 3/1317) Sec. 1317. Selective allocation doctrine. If a powerholder exercises a power of appointment in a disposition that also disposes of property the powerholder owns, the owned property and the appointive property must be allocated in the permissible manner that best…

(760 ILCS 3/1318) Sec. 1318. Capture doctrine: disposition of ineffectively appointed property under general power. To the extent a powerholder of a general power of appointment, other than a power to revoke, amend, or withdraw property from a trust, makes an ineffective appointm…

(760 ILCS 3/1319) Sec. 1319. Disposition of unappointed property under released or unexercised general power. To the extent a powerholder releases or fails to exercise a general power of appointment other than a power to revoke, amend, or withdraw property from a trust: (1) the g…

(760 ILCS 3/1320) Sec. 1320. Disposition of unappointed property under released or unexercised nongeneral power. To the extent a powerholder releases, ineffectively exercises, or fails to exercise a nongeneral power of appointment: (1) the gift-in-default clause controls the disp…

(760 ILCS 3/1321) Sec. 1321. Disposition of unappointed property if partial appointment to taker in default. Unless the terms of the instrument creating or exercising a power of appointment manifest a contrary intent, if the powerholder makes a valid partial appointment to a take…

(760 ILCS 3/1322) Sec. 1322. Appointment to taker in default. If a powerholder of a general power makes an appointment to a taker in default of appointment and the appointee would have taken the property under a gift-in-default clause had the property not been appointed, the powe…

(760 ILCS 3/1323) Sec. 1323. Powerholder's authority to revoke or amend exercise. A powerholder may revoke or amend an exercise of a power of appointment only to the extent that: (1) the powerholder reserves a power of revocation or amendment in the instrument exercising the powe…

(760 ILCS 3/1324) Sec. 1324. Disposition of trust property subject to power. In disposing of trust property subject to a power of appointment, whether exercisable by a will or an instrument other than a will, a trustee acting in good faith shall have no liability to any appointee…

(760 ILCS 3/1325) Sec. 1325. Disclaimer. As provided by Section 2-7 of the Probate Act of 1975: (1) A powerholder may disclaim all or part of a power of appointment. (2) A permissible appointee, appointee, or taker in default of appointment may disclaim all or part of an interest…

(760 ILCS 3/1326) Sec. 1326. Authority to release. A powerholder may release a power of appointment, in whole or in part, except to the extent the terms of the instrument creating the power prevent the release. (Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1327) Sec. 1327. Method of release. A powerholder of a releasable power of appointment may release the power in whole or in part: (1) by substantial compliance with a method provided in the terms of the instrument creating the power; or (2) if the terms of the instrum…

(760 ILCS 3/1328) Sec. 1328. Revocation or amendment of release. A powerholder may revoke or amend a release of a power of appointment only to the extent that: (1) the instrument of release is revocable by the powerholder; or (2) the powerholder reserves a power of revocation or …

(760 ILCS 3/1329) Sec. 1329. Power to contract: presently exercisable power of appointment. A powerholder of a presently exercisable power of appointment may contract: (1) not to exercise the power; or (2) to exercise the power if the contract when made does not confer a benefit …

(760 ILCS 3/1330) Sec. 1330. Power to contract: power of appointment not presently exercisable. A powerholder of a power of appointment that is not presently exercisable may contract to exercise or not to exercise the power only if the powerholder: (1) is also the donor of the po…

(760 ILCS 3/1331) Sec. 1331. Remedy for breach of contract to appoint or not to appoint. The remedy for a powerholder's breach of a contract to appoint or not to appoint is limited to damages payable out of the appointive property or, if appropriate, specific performance of the c…