summary
Introduced
01/24/2025
01/24/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Trust Code. Allows a virtuous trust to be created for a business or other noncharitable purpose without a definite or definitely ascertainable beneficiary. Requires a virtuous trust to be created by a written instrument. Allows a virtuous trust to hold an ownership interest of any corporation, partnership, limited partnership, cooperative, limited liability company, limited liability partnership, or joint venture. Provides that a trustee of a virtuous trust or a virtuous trust shall not be deemed to violate the trustee's duties by virtue of the trustee investing and managing the trust's assets pursuant to the terms and the purposes of the trust. Exempts a virtuous trust from the common law rule against perpetuities. Allows a virtuous trust to be enforced by one or more trust enforcers appointed in the trust instruction, and allows a virtuous trust instrument to provide for appointing successor trust enforcers. Requires a virtuous trust to have a trust purpose committee with at least 3 persons as members. Includes provisions related to the trust purpose committee, including appointment procedures, voting procedures, powers of the committee, resignation procedures, and reporting requirements. Provides that property of a virtuous trust may be applied only to its intended use. Allows the trust purpose committee and the trust enforcers to modify or terminate a virtuous trust by unanimous agreement. Prohibits a person serving as a trustee from serving as a trust enforcer or as a member of the trust purpose committee. Makes conforming changes.
AI Summary
This bill amends the Illinois Trust Code to introduce a new type of legal entity called a "virtuous trust," which can be created for business or noncharitable purposes without requiring a traditional definite beneficiary. The bill allows virtuous trusts to hold ownership interests in various business entities and provides specific governance rules. A virtuous trust must be created by a written instrument and must establish a trust purpose committee with at least three members who act as fiduciaries. The trust will also have trust enforcers who can protect the trust's purpose and have rights similar to qualified beneficiaries. The bill allows the trust purpose committee and trust enforcers to modify or terminate the trust by unanimous agreement, and prohibits a trustee from simultaneously serving as a trust enforcer or committee member. Importantly, the bill exempts virtuous trusts from the common law rule against perpetuities and allows trustees to manage trust assets according to the trust's purposes without being deemed to violate their fiduciary duties. The trust can designate stakeholder categories like employees, suppliers, or customers who may benefit from the trust, and the property can only be applied to its intended use. This innovative legal structure provides businesses with a new framework for creating trusts that can pursue both economic and noneconomic objectives.
Committee Categories
Justice
Sponsors (1)
Last Action
Rule 3-9(a) / Re-referred to Assignments (on 04/11/2025)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=264&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB0264.htm |
Loading...