Illinois Compiled Statutes 760 ILCS 3/402 – Requirements for creation
Current as of: 2024 | Check for updates
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(a) A trust is created only if:
(1) the settlor or other person creating the trust
(1) the settlor or other person creating the trust
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has capacity to create a trust;
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(2) the settlor or other person creating the trust
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indicates an intention to create the trust;
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(3) the trust has a definite beneficiary or is:
(A) a charitable trust;
(B) a trust for the care of an animal, as
Terms Used In Illinois Compiled Statutes 760 ILCS 3/402
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
(A) a charitable trust;
(B) a trust for the care of an animal, as
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provided in Section 408; or
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(C) a trust for a noncharitable purpose, as
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provided in Section 409;
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(4) the trustee has duties to perform; and
(5) the same person is not the sole trustee and sole
(5) the same person is not the sole trustee and sole
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beneficiary.
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(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
(c) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.
(c) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.