Illinois 95th Regular Session Status: Passed Senate 2 D cosponsors

SB 2725 — CIVIL LAW-TECH

Last action — Session Sine Die

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 95th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Amends the Conveyances Act. Makes a technical change to a Section concerning deeds, mortgages, and other instruments.

Bill Text

What changed in the latest version

118 added · 25 removed

Plain-language change summary

The recent amendment to SB 2725 introduces a new section regarding spendthrift trusts, allowing individuals (settlers) to create trusts where their income or principal cannot be easily transferred or accessed by creditors until paid out by the trustee. This change specifically applies to trusts established after the law goes into effect and aims to offer greater financial protection for individuals from creditors. Additionally, it requires that at least one trustee be a corporate fiduciary, ensuring a level of oversight and reliability in managing these trusts. Overall, these updates strengthen legal protections for those creating trusts, making it harder for creditors to claim their assets prematurely.

→
Previous
Latest
*LRB09505934AJO26026b* SB2725 95TH GENERAL ASSEMBLY State of Illinois and 2008 SB2725 Introduced 2/15/2008, by Sen.
SB2725 Engrossed LRB095 05934 AJO 26026 b AN ACT concerning civil law.
Emil Jones, Jr.
SYNOPSIS AS INTRODUCED:
ILCS 5/30 from Ch.
30, par.
29 concerning deeds, mortgages, and other instruments.ange to a Section LRB095 05934 AJO 26026 b A BILL FOR SB2725 LRB095 05934 AJO 26026 b AN ACT concerning civil law.
The Conveyances Act is amended by changing Section 30 as follows:
The Trusts and Trustees Act is amended by adding Section 5.4 as follows:
(765 ILCS 5/30) (from Ch.
(760 ILCS 5/5.4 new) Sec.
30, par.
5.4.
29) Sec.
Spendthrift trusts.
30.
(a) For trusts created on or after the effective date of this amendatory Act of the 95th General Assembly, a settlor who in writing irrevocably transfers property in any manner to a trust having at least one trustee as defined in subsection (b) of this Section may, subject to the limitations in subsection (c) of this Section, provide that the income or principal interest of the settlor as beneficiary may not be either voluntarily or involuntarily transferred before payment or delivery to the settlor as beneficiary by the trustee.
All deeds, mortgages and and other instruments of writing which are authorized to be recorded, shall take effect and be in force from and after the time of filing the same for record, and not before, as to all creditors and subsequent purchasers, without notice;
This Section shall be considered to be a restriction on the transfer of the settlor’s beneficial interest in the trust that is enforceable under applicable nonbankruptcy law within the meaning of Section 541(c)(2) of the Bankruptcy Code or any successor provision.
and all such deeds and title papers shall be adjudged void as to all such creditors and subsequent purchasers, without notice, until the same shall be filed for record.
(b) (1) If the settlor is a beneficiary of the trust, at least one trustee of a trust described in this Section must be SB2725 Engrossed - 2 - LRB095 05934 AJO 26026 b a corporate fiduciary authorized by the laws of this State to act as a trustee and whose activities are subject to supervision by the Director of the Division of Banking of this State, the Office of the Comptroller of the Currency, or the Office of Thrift Supervision, or any successor thereto;
(Source:
and (2) maintains or arranges for custody in this State of some or all of the property that is the subject of the trust described in this Section, maintains records for the trust on an exclusive or nonexclusive basis, prepares or arranges for the preparation of fiduciary income tax returns for the trust, or otherwise materially participates in the administration of the trust.
Laws 1871-2, p.
(c) (1) Except as provided in this subsection, if a trust has a restriction as provided in subsection (a) of this Section, a creditor or other claimant of the settlor may not satisfy a claim, or liability on a claim, in either law or equity, out of the settlor’s transfer or the settlor’s beneficial interest in the trust.
282.)
For purposes of this Section, a creditor includes one holding or seeking to enforce a judgment entered by a court or other body having adjudicative authority as well as one with a right to payment, whether or not reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.
(2) A trust described in this Section does not prevent a creditor or person described in this subsection (c) from SB2725 Engrossed - 3 - LRB095 05934 AJO 26026 b satisfying a claim or liability out of the settlor’s beneficial interest in or transfer into trust if:
(i) the claim is a judgment, order, decree, or other legally enforceable decision or ruling resulting from a judicial, arbitration, mediation, or administrative proceeding commenced prior to or within 3 years after the trust is created;
(ii) the settlor’s transfer into trust is made with actual intent to hinder, delay, or defraud that creditor or claimant;
(iii) the trust provides that the settlor may revoke or terminate all or part of the trust;
(iv) the claim is for a payment owed by the settlor under a child support judgment or order;
(v) the claim is by a spouse or former spouse of the settlor on account of an agreement or court order for the payment of support or maintenance or for a division or distribution of property;
(vi) the claim is a tax or other amount owed by the settlor to any governmental entity;
(vii) the claim is by a governmental entity for recovery of public assistance received by the settlor from the governmental entity;
(viii) the transfer is made when the settlor is insolvent or the transfer renders the settlor insolvent;
SB2725 Engrossed - 4 - LRB095 05934 AJO 26026 b (ix) the claim is a judgment, award, order, sentence, fine, penalty, or other determination of liability of the settlor for conduct of the settlor constituting fraud, intentional infliction of harm, or a crime;
or (x) the settlor transferred assets into the trust that:
(1) were listed in a written representation of the settlor’s assets given to a claimant to induce the claimant to enter into a transaction or agreement with the settlor;
or (2) were transferred from the settlor’s control in breach of any written agreement, covenant, or security interest between the settlor and the claimant.
(d) The statute of limitations for actions to satisfy a claim or liability out of the settlor’s beneficial interest in or transfer into trust under this Section is the statute of limitations applicable to the underlying action.
(e) The satisfaction of a claim under this Section is limited to that part of the trust or transfer to which it applies.
(f) For purposes of this Section, a trust is not revoked or terminated by:
(i) a power to veto a distribution from the trust;
(ii) a testamentary special power of appointment or similar power;
(iii) the right to receive a distribution of income, SB2725 Engrossed - 5 - LRB095 05934 AJO 26026 b principal, or both in the discretion of another, including a trustee other than the settlor;
(iv) an interest in a charitable remainder unitrust or charitable remainder annuity trust as defined in Internal Revenue Code Section 664 or any successor provision;
(v) a right to receive principal subject to an ascertainable standard set forth in the trust;
or (vi) the power to appoint a nonsubordinate adviser or trust protector who can remove and appoint trustees, who can direct, consent to, or disapprove distributions, or who is an investment adviser or has the power to appoint an investment adviser or investment director pursuant to the laws of this State.
(g) The courts of this State shall have exclusive jurisdiction over any action brought under this Section.
⬇ Download PDF
View plain text versions (2)

Action History

  1. Session Sine Die

  2. Rule 19(a) / Re-referred to Rules Committee

  3. Alternate Chief Sponsor Changed to Rep. Julie Hamos

  4. Added Alternate Co-Sponsor Rep. Al Riley

  5. Added Alternate Co-Sponsor Rep. Cynthia Soto

  6. Added Alternate Co-Sponsor Rep. Paul D. Froehlich

  7. Added Alternate Co-Sponsor Rep. Susana A Mendoza

  8. Added Alternate Co-Sponsor Rep. Naomi D. Jakobsson

  9. Added Alternate Co-Sponsor Rep. Charles E. Jefferson

  10. Added Alternate Co-Sponsor Rep. Mike Boland

  11. Held on Calendar Order of Second Reading - Short Debate

  12. Added Alternate Co-Sponsor Rep. LaShawn K. Ford

  13. Second Reading - Short Debate

  14. Added Alternate Co-Sponsor Rep. Fred Crespo

  15. Placed on Calendar 2nd Reading - Short Debate

  16. Do Pass as Amended / Short Debate Consumer Protection Committee; 007-004-000

  17. House Committee Amendment No. 1 Adopted in Consumer Protection Committee; by Voice Vote

  18. House Committee Amendment No. 1 Filed with Clerk by Consumer Protection Committee

  19. Added Alternate Chief Co-Sponsor Rep. John A. Fritchey

  20. Alternate Chief Sponsor Changed to Rep. Greg Harris

  21. Assigned to Consumer Protection Committee

  22. Final Action Deadline Extended-9(b) November 30, 2008

  23. Referred to Rules Committee

  24. First Reading

  25. Added Alternate Chief Co-Sponsor Rep. Chapin Rose

  26. Chief House Sponsor Rep. John A. Fritchey

  27. Placed on Calendar Order of First Reading

  28. Arrived in House

  29. Third Reading - Passed; 052-000-000

  30. Placed on Calendar Order of 3rd Reading

  31. Senate Floor Amendment No. 2 Adopted; Haine

  32. Senate Floor Amendment No. 1 Tabled Haine

  33. Senate Floor Amendment No. 1 Motion to Table Amendment - Prevailed Haine

  34. Senate Floor Amendment No. 1 Adopted; E. Jones

  35. Recalled to Second Reading

  36. Senate Floor Amendment No. 2 Recommend Do Adopt Judiciary Civil Law; 010-000-000

  37. Senate Floor Amendment No. 2 Rules Refers to Judiciary Civil Law

  38. Senate Floor Amendment No. 2 Referred to Rules

  39. Senate Floor Amendment No. 2 Filed with Secretary by Sen. William R. Haine

  40. Added as Chief Co-Sponsor Sen. Kirk W. Dillard

  41. Chief Sponsor Changed to Sen. William R. Haine

  42. Senate Floor Amendment No. 1 Recommend Do Adopt Judiciary Civil Law; 008-000-000

  43. Senate Floor Amendment No. 1 Rules Refers to Judiciary Civil Law

  44. Senate Floor Amendment No. 1 Referred to Rules

  45. Senate Floor Amendment No. 1 Filed with Secretary by Sen. Emil Jones, Jr.

  46. Placed on Calendar Order of 3rd Reading April 2, 2008

  47. Second Reading

  48. Placed on Calendar Order of 2nd Reading April 1, 2008

  49. Do Pass Executive; 008-005-000

  50. Added as Chief Co-Sponsor Sen. James A. DeLeo

  51. Assigned to Executive

  52. Referred to Rules

  53. First Reading

  54. Filed with Secretary by Sen. Emil Jones, Jr.

Sponsors

  • William R. Haine · Cosponsor
  • Fred Crespo · Cosponsor
  • La Shawn K. Ford · Cosponsor
  • Mike Boland · Cosponsor
  • Charles E. Jefferson · Cosponsor
  • Naomi D. Jakobsson · Cosponsor
  • Susana A Mendoza · Cosponsor
  • Paul D. Froehlich · Cosponsor
  • Cynthia Soto · Cosponsor
  • Al Riley · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

0 sponsors · 10 co-sponsors · 173 not signed on

Sponsors (0)

None.

Co-sponsors (10)

  • William R. Haine
  • Fred Crespo Democrat
  • La Shawn K. Ford Democrat
  • Mike Boland
  • Charles E. Jefferson
  • Naomi D. Jakobsson
  • Susana A Mendoza
  • Paul D. Froehlich
  • Cynthia Soto
  • Al Riley

Not signed on (173)

173 members have not signed on to this bill.

Show all 173 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Third Reading

Passed 52 Yea · 0 Nay · 7 Other
Party YeaNayPresentNot Voting
Unaffiliated 43006
Democrat 9000
Republican 0001
Total 52007
% of votes cast 88%0%0%12%
How each member voted (59)
Member Party Vote
Halvorson — Yea
Lauzen — Yea
Link — Yea
Luechtefeld — Yea
Forby — Yea
Frerichs — Yea
Haine — Yea
Brady — Yea
Meeks — Not Voting
Sullivan — Yea
Millner — Yea
Munoz — Yea
Noland — Yea
Pankau — Yea
Peterson — Yea
Cullerton — Yea
Watson — Yea
Jacobs — Yea
Schoenberg — Not Voting
Jones, J. — Yea
Demuzio — Yea
Steans — Yea
Trotter — Yea
Viverito — Yea
Wilhelmi — Yea
Clayborne — Yea
Cronin — Yea
Crotty — Yea
Dahl — Yea
DeLeo — Yea
Dillard — Not Voting
Garrett — Not Voting
Hendon — Yea
Hultgren — Yea
Kotowski — Yea
Radogno — Yea
Raoul — Yea
Righter — Not Voting
Risinger — Yea
Rutherford — Yea
Sandoval — Not Voting
Silverstein — Yea
Maloney — Yea
Althoff — Yea
Martinez — Yea
Bivins — Yea
Bomke — Yea
Bond — Yea
Burzynski — Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Yea
Mattie Hunter Democrat Yea
Dave Syverson Republican Not Voting

Official roll call →

Subjects

technology
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 2725 do?
Amends the Conveyances Act. Makes a technical change to a Section concerning deeds, mortgages, and other instruments.
Who sponsors SB 2725?
SB 2725 is sponsored by William R. Haine, Fred Crespo (Democrat), La Shawn K. Ford (Democrat), Mike Boland, Charles E. Jefferson, Naomi D. Jakobsson, Susana A Mendoza, Paul D. Froehlich, Cynthia Soto, and Al Riley.
What is the current status of SB 2725?
This bill died with 95th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 2725?
Track SB 2725 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 2725

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 2725

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →