summary
Introduced
01/14/2026
01/14/2026
In Committee
01/20/2026
01/20/2026
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 establishes a new type of trust in Illinois called a "virtuous trust," which can be created for a business or other noncharitable purpose without needing a specific beneficiary, though it can designate categories of stakeholders like employees or customers. These trusts must be created in writing and can hold ownership interests in various business entities. The bill clarifies that a trustee of a virtuous trust is not violating their duties by managing assets according to the trust's terms and purposes, even if it means retaining ownership in a specific company, and these trusts are exempt from the rule against perpetuities, which generally limits how long assets can be held in trust. Enforcement of a virtuous trust will be handled by appointed "trust enforcers," who have the same rights as qualified beneficiaries, and a "trust purpose committee" with at least three members will oversee the trust's operations, with specific provisions for their appointment, voting, powers, resignation, and reporting. Importantly, property within a virtuous trust can only be used for its intended purpose, and both the trust purpose committee and trust enforcers can modify or terminate the trust with unanimous agreement, while individuals serving as trustee cannot also be trust enforcers or members of the trust purpose committee, and trust enforcers cannot be members of the trust purpose committee.
Sponsors (1)
Last Action
Referred to Rules Committee (on 01/20/2026)
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