reglab/housing_qa huggingface dataset:
760 ILCS 3/1109
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 11 - Total Return Trusts

Sec. 1109. Tax limitations.(a)  If a particular trustee is a beneficiary of the trust and conversion or failure to convert would enhance or diminish the beneficial interest of the trustee, or if possession or exercise of the conversion power by a particular trustee would alone cause any individual to be treated as owner of a part of the trust for income tax purposes or cause a part of the trust to be included in the gross estate of any individual for estate tax purposes, then the particular trustee may not participate as a trustee in the exercise of the conversion power except that the particular trustee may petition the court under subsection (a) of Section 1104 to order conversion in accordance with this Article.(b)  If the particular trustee has one or more co-trustees to whom subsection (a) does not apply, the co-trustee or co-trustees may convert the trust to a total return trust in accordance with this Article.    (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1110
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 11 - Total Return Trusts

Sec. 1110. Releases. A trustee may irrevocably release the power granted by this Article if the trustee reasonably believes the release is in the best interests of the trust and its beneficiaries. The release may be personal to the releasing trustee or may apply generally to some or all subsequent trustees, and the release may be for any specified period, including a period measured by the life of an individual.   (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1111
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 11 - Total Return Trusts

Sec. 1111. Remedies. A trustee who reasonably and in good faith takes any action under this Article is not liable to any interested person. If a trustee reasonably and in good faith takes any action under this Article and an interested person opposes the action, the person's exclusive remedy is to obtain an order of the court directing the trustee to convert the trust to a total return trust, to reconvert from a total return trust, to change the distribution percentage, or to order any administrative procedures the court determines necessary or helpful for the proper functioning of the trust. An action by a trustee under this Article is presumed taken or omitted reasonably and in good faith unless it is determined by the court to have been an abuse of discretion.   (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1112
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 11 - Total Return Trusts

Sec. 1112. Application.  This Article is available to trusts in existence on or after August 22, 2002. This Article shall be construed as pertaining to the administration of a trust and shall be available to any trust that is administered in Illinois or that is governed by Illinois law with respect to the meaning and effect of its terms unless one of the following apply:(1)  The trust is a trust described in Section     642(c)(5), 664(d), 2702(a)(3), or 2702(b) of the Internal Revenue Code.(2)  The trust instrument expressly prohibits use of     this Article by specific reference to this Article or a prior corresponding law. A provision in the trust instrument in the form: "Neither the provisions of Article 11 of the Illinois Trust Code nor any corresponding provision of future law may be used in the administration of this trust" or a similar provision demonstrating that intent is sufficient to preclude the use of this Article.  (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1113
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 11 - Total Return Trusts

(760 ILCS 3/1113)Sec. 1113. Application to express trusts.(a)  In this Section:(1)  "Unitrust" means a trust the terms of which     require distribution of a unitrust amount, without regard to whether the trust has been converted to a total return trust in accordance with this Article or whether the trust is established by express terms of the trust.(2)  "Unitrust amount" means an amount equal to a     percentage of a trust's assets that may or must be distributed to one or more beneficiaries annually in accordance with the terms of the trust. The unitrust amount may be determined by reference to the net fair market value of the trust's assets as of a particular date or as an average determined on a multiple-year basis.(b)  A unitrust changes the definition of income by substituting the unitrust amount for net trust accounting income as the method of determining current return and shall be given effect notwithstanding any contrary provision of the Principal and Income Act. By way of example and not limitation, a unitrust amount determined by a percentage of not less than 3% nor greater than 5% is conclusively presumed a reasonable current return that fairly apportions the total return of a unitrust.(c)  Subsection (b) of Section 1107 applies to a unitrust except to the extent its trust instrument expressly provides otherwise.(d)  This Section does not apply to a charitable remainder unitrust as defined by Section 664(d) of the Internal Revenue Code.    (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/Art. 12 heading
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

   Article 12.   Trust Decanting.  (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1201
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

Sec. 1201. Article title. This Article may be referred to as the Trust Decanting Law.  (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1202
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

Sec. 1202. Definitions. In this Article:(1)  (Blank).(2)   "Authorized fiduciary" means:(A)  a trustee or other fiduciary, other than a     settlor, that has discretion to distribute or direct a trustee to distribute part or all of the principal of the first trust to one or more current beneficiaries;(B)  a special fiduciary appointed under Section     1209; or(C)  a special-needs fiduciary under Section 1213.(3)  "Court" means the court in this State having jurisdiction in matters relating to trusts.(4)   "Decanting power" or "the decanting power" means the power of an authorized fiduciary under this Article to distribute property of a first trust to one or more second trusts or to modify the terms of the first trust.(5)  "Expanded distributive discretion" means a discretionary power of distribution that is not limited to an ascertainable standard or a reasonably definite standard.(6)  "First trust" means a trust over which an authorized fiduciary may exercise the decanting power.(7)  "First-trust instrument" means the trust instrument for a first trust.(8)   "Reasonably definite standard" means a clearly measurable standard under which a holder of a power of distribution is legally accountable within the meaning of Section 674(b)(5)(A) of the Internal Revenue Code, as amended, and any applicable regulations.(9)  "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.(10)  "Second trust" means:(A)  a first trust after modification under this     Article; or(B)  a trust to which a distribution of property from     a first trust is or may be made under this Article.(11)  "Second-trust instrument" means the trust instrument for a second trust.    (Source: P.A. 101-48, eff. 1-1-20; 102-279, eff. 1-1-22.)
760 ILCS 3/1203
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

Sec. 1203. Scope.(a)  Except as otherwise provided in subsections (b) and (c), this Article applies to an express trust that is irrevocable or revocable by the settlor only with the consent of the trustee or a person holding an adverse interest.(b)  This Article does not apply to a trust held solely for charitable purposes.(c)  Subject to Section 1215, a trust instrument may restrict or prohibit exercise of the decanting power.(d)  This Article does not limit the power of a trustee, powerholder, or other person to distribute or appoint property in further trust or to modify a trust under the trust instrument, law of this State other than this Article, common law, a court order, or a nonjudicial settlement agreement.(e)  This Article does not affect the ability of a settlor to provide in a trust instrument for the distribution or appointment in further trust of the trust property or for modification of the trust instrument.    (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1204
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

Sec. 1204. Fiduciary duty.(a)  In exercising the decanting power, an authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to act in accordance with the purposes of the first trust.(b)  This Article does not create or imply a duty to exercise the decanting power or to inform beneficiaries about the applicability of this Article.(c)  Except as otherwise provided in a first-trust instrument, for purposes of this Article and Section 801, the terms of the first trust are deemed to include the decanting power.    (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1205
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

Sec. 1205. Application; governing law. This Article applies to a trust created before, on, or after the effective date of this Code that:(1)  has its principal place of administration in     this State, including a trust whose principal place of administration has been changed to this State; or(2)  provides by its trust instrument that it is     governed by the law of this State or is governed by the law of this State for the purpose of:(A)  administration, including administration of         a trust whose governing law for purposes of administration has been changed to the law of this State;(B)  construction of terms of the trust; or(C)  determining the meaning or effect of terms         of the trust.  (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1206
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

Sec. 1206. Reasonable reliance. A trustee or other person that reasonably relies on the validity of a distribution of part or all of the property of a trust to another trust, or a modification of a trust, under this Article, law of this State other than this Article or the law of another jurisdiction is not liable to any person for any action or failure to act as a result of the reliance.  (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1207
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

Sec. 1207. Notice.(a)  In this Section, a notice period begins on the day notice is given under subsection (c) and ends 59 days after the day notice is given.(b)  Except as otherwise provided in this Article, an authorized fiduciary may exercise the decanting power without the consent of any person and without court approval.(c)  Except as otherwise provided in subsection (f), an authorized fiduciary shall give notice in a record of the intended exercise of the decanting power not later than 60 days before the exercise to:(1)  each settlor of the first trust, if living or     then in existence;(2)  each qualified beneficiary of the first trust;(3)  each holder of a presently exercisable power of     appointment over any part or all of the first trust;(4)  each person that currently has the right to     remove or replace the authorized fiduciary;(5)  each other fiduciary of the first trust;(6)  each fiduciary of the second trust; and(7)  the Attorney General's Charitable Trust Bureau,     if the first trust contains a charitable interest.(d)  An authorized fiduciary is not required to give notice under subsection (c) to a qualified beneficiary who is a minor and has no representative.  The authorized fiduciary is not required to give notice under subsection (c) to a person that is not known to the fiduciary or is known to the fiduciary but cannot be located by the fiduciary after reasonable diligence.(e)  A notice under subsection (c) must:(1)  specify the manner in which the authorized     fiduciary intends to exercise the decanting power;(2)  specify the proposed effective date for exercise     of the power;(3)  include a copy of the first-trust instrument;     and(4)  include a copy of all second-trust instruments.(f)  The decanting power may be exercised before expiration of the notice period under subsection (a) if all persons entitled to receive notice waive the period in a signed record.(g)  The receipt of notice, waiver of the notice period, or expiration of the notice period does not affect the right of a person to file an application under Section 1209 with the court asserting that:(1)  an attempted exercise of the decanting power is     ineffective because it did not comply with this Article or was an abuse of discretion or breach of fiduciary duty; or(2)  Section 1222 applies to the exercise of the     decanting power.(h)  An exercise of the decanting power is not ineffective because of the failure to give notice to one or more persons under subsection (c) if the authorized fiduciary acted with reasonable care to comply with subsection (c).(i) If the first trust contains a charitable interest and the Attorney General objects to the proposed exercise of the decanting power in writing delivered to the authorized fiduciary before the end of the notice period, the authorized fiduciary may proceed with the proposed exercise of the decanting power only with either court approval or the later written consent of the Attorney General.  (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1208
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

Sec. 1208. (Reserved).   (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1209
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

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 charitable interest, the court may:(1)  provide instructions to the authorized fiduciary     regarding whether a proposed exercise of the decanting power is permitted under this Article and consistent with the fiduciary duties of the authorized fiduciary;(2)  appoint a special fiduciary and authorize the     special fiduciary to determine whether the decanting power should be exercised under this Article and to exercise the decanting power;(3)  approve an exercise of the decanting power;(4)  determine that a proposed or attempted exercise     of the decanting power is ineffective because:(A)  after applying Section 1222, the proposed or         attempted exercise does not or did not comply with this Article; or(B)  the proposed or attempted exercise would be         or was an abuse of the fiduciary's discretion or a breach of fiduciary duty;(5)  determine the extent to which Section 1222     applies to a prior exercise of the decanting power;(6)  provide instructions to the trustee regarding     the application of Section 1222 to a prior exercise of the decanting power; or(7)  order other appropriate relief to carry out the     purposes of this Article.(b)  On application of an authorized fiduciary, the court may approve:(1)  an increase in the fiduciary's compensation     under Section 1216; or(2)  a modification under Section 1218 of a provision     granting a person the right to remove or replace the fiduciary.  (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1210
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

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 trusts and state the property of the first trust being distributed to each second trust and the property, if any, that remains in the first trust.  (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1212
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

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 fiduciary that has limited distributive discretion over the principal of the first trust for the benefit of one or more current beneficiaries may exercise the decanting power over the principal of the first trust.(c)  Under this Section and subject to Section 1214, a second trust may be created or administered under the law of any jurisdiction.  Under this Section, the second trusts, in the aggregate, must grant each beneficiary of the first trust beneficial interests that are substantially similar to the beneficial interests of the beneficiary in the first trust.(d)  A power to make a distribution under a second trust for the benefit of a beneficiary who is an individual is substantially similar to a power under the first trust to make a distribution directly to the beneficiary.  A distribution is for the benefit of a beneficiary if:(1)  the distribution is applied for the benefit of     the beneficiary;(2)  the beneficiary is incapacitated or in the     opinion of the trustee is unable to manage property or business affairs, and the distribution is made as permitted under this Code; or(3)  the distribution is made as permitted under the     terms of the first-trust instrument and the second-trust instrument for the benefit of the beneficiary.(e)  If an authorized fiduciary has limited distributive discretion over part but not all of the principal of a first trust, the fiduciary may exercise the decanting power under this Section over that part of the principal over which the authorized fiduciary has limited distributive discretion.    (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1214
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

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 passage of a specified time and that is unconditional or that will in all events be held for charitable purposes.(2)  "Unconditional" means not subject to the     occurrence of a specified event that is not certain to occur, other than a requirement in a trust instrument that a charitable organization be in existence or qualify under a particular provision of the Internal Revenue Code on the date of the distribution if the charitable organization meets the requirement on the date of determination.(b)  If a first trust contains a determinable charitable interest, the Attorney General has the rights of a qualified beneficiary and may represent and bind the charitable interest.(c)  If a first trust contains a charitable interest, the second trusts in the aggregate may not:(1)  diminish the charitable interest;(2)  diminish the interest of an identified     charitable organization that holds the charitable interest;(3)  alter any charitable purpose stated in the     first-trust instrument; or(4)  alter any condition or restriction related to     the charitable interest.(d)  If there are 2 or more second trusts, the second trusts shall be treated as one trust for purposes of determining whether the exercise of the decanting power diminishes the charitable interest or diminishes the interest of an identified charitable organization for purposes of subsection (c).(e)  If a first trust contains a determinable charitable interest, the second trusts that include charitable interests pursuant to subsection (c) must be administered under the law of this State unless:(1)  the Attorney General, after receiving notice     under Section 1207, fails to object in a signed record delivered to the authorized fiduciary within the notice period;(2)  the Attorney General consents in a signed record     to the second trusts being administered under the law of another jurisdiction; or(3)  the court approves the exercise of the decanting     power.(f)  This Article does not limit the powers and duties of the Attorney General under Illinois law.      (Source: P.A. 101-48, eff. 1-1-20.)
760 ILCS 3/1215
2021 Illinois Compiled Statutes|Chapter 760 - TRUSTS AND FIDUCIARIES|760 ILCS 3/ - Illinois Trust Code.|Article 12 - Trust Decanting

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     distribute part or all of the principal of the trust to another trust or to modify the trust.(b)  Exercise of the decanting power is subject to any restriction in the first-trust instrument that expressly applies to exercise of:(1)  the decanting power; or(2)  a power granted by state law to a fiduciary to     distribute part or all of the principal of the trust to another trust or to modify the trust.(c)  A general prohibition of the amendment or revocation of a first trust, a spendthrift provision, or a clause restraining the voluntary or involuntary transfer of a beneficiary's interest does not preclude exercise of the decanting power.(d)  Subject to subsections (a) and (b), an authorized fiduciary may exercise the decanting power under this Article even if the first-trust instrument permits the authorized fiduciary or another person to modify the first-trust instrument or to distribute part or all of the principal of the first trust to another trust.(e)  If a first-trust instrument contains an express prohibition described in subsection (a) or an express restriction described in subsection (b), that provision must be included in the second-trust instrument.    (Source: P.A. 101-48, eff. 1-1-20; 102-279, eff. 1-1-22.)