Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0264 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0264 Introduced 1/24/2025, by Sen. Robert Peters SYNOPSIS AS INTRODUCED: 760 ILCS 3/103760 ILCS 3/110760 ILCS 3/402760 ILCS 3/407760 ILCS 3/409.5 new 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. LRB104 07749 JRC 17794 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0264 Introduced 1/24/2025, by Sen. Robert Peters SYNOPSIS AS INTRODUCED: 760 ILCS 3/103760 ILCS 3/110760 ILCS 3/402760 ILCS 3/407760 ILCS 3/409.5 new 760 ILCS 3/103 760 ILCS 3/110 760 ILCS 3/402 760 ILCS 3/407 760 ILCS 3/409.5 new 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. LRB104 07749 JRC 17794 b LRB104 07749 JRC 17794 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0264 Introduced 1/24/2025, by Sen. Robert Peters SYNOPSIS AS INTRODUCED:
3	3	760 ILCS 3/103760 ILCS 3/110760 ILCS 3/402760 ILCS 3/407760 ILCS 3/409.5 new 760 ILCS 3/103 760 ILCS 3/110 760 ILCS 3/402 760 ILCS 3/407 760 ILCS 3/409.5 new
4	4	760 ILCS 3/103
5	5	760 ILCS 3/110
6	6	760 ILCS 3/402
7	7	760 ILCS 3/407
8	8	760 ILCS 3/409.5 new
9	9	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.
10	10	LRB104 07749 JRC 17794 b LRB104 07749 JRC 17794 b
11	11	LRB104 07749 JRC 17794 b
12	12	A BILL FOR
13	13	SB0264LRB104 07749 JRC 17794 b SB0264 LRB104 07749 JRC 17794 b
14	14	SB0264 LRB104 07749 JRC 17794 b
15	15	1 AN ACT concerning civil law.
16	16	2 Be it enacted by the People of the State of Illinois,
17	17	3 represented in the General Assembly:
18	18	4 Section 5. The Illinois Trust Code is amended by changing
19	19	5 Sections 103, 110, 402, and 407 and by adding Section 409.5 as
20	20	6 follows:
21	21	7 (760 ILCS 3/103)
22	22	8 Sec. 103. Definitions. In this Code:
23	23	9 (1) "Action", with respect to an act of a trustee,
24	24	10 includes a failure to act.
25	25	11 (1.5) "Appointive property" means the property or property
26	26	12 interest subject to a power of appointment.
27	27	13 (2) "Ascertainable standard" means a standard relating to
28	28	14 an individual's health, education, support, or maintenance
29	29	15 within the meaning of Section 2041(b)(1)(A) or 2514(c)(1) of
30	30	16 the Internal Revenue Code and any applicable regulations.
31	31	17 (3) "Beneficiary" means a person that:
32	32	18 (A) has a present or future beneficial interest in a
33	33	19 trust, vested or contingent, assuming nonexercise of
34	34	20 powers of appointment, excluding the right of a settlor to
35	35	21 be reimbursed for tax obligations as provided in paragraph
36	36	22 (3) of subsection (a) of Section 505;
37	37	23 (B) in a capacity other than that of trustee, holds a
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41	41	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0264 Introduced 1/24/2025, by Sen. Robert Peters SYNOPSIS AS INTRODUCED:
42	42	760 ILCS 3/103760 ILCS 3/110760 ILCS 3/402760 ILCS 3/407760 ILCS 3/409.5 new 760 ILCS 3/103 760 ILCS 3/110 760 ILCS 3/402 760 ILCS 3/407 760 ILCS 3/409.5 new
43	43	760 ILCS 3/103
44	44	760 ILCS 3/110
45	45	760 ILCS 3/402
46	46	760 ILCS 3/407
47	47	760 ILCS 3/409.5 new
48	48	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.
49	49	LRB104 07749 JRC 17794 b LRB104 07749 JRC 17794 b
50	50	LRB104 07749 JRC 17794 b
51	51	A BILL FOR
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57	57	760 ILCS 3/103
58	58	760 ILCS 3/110
59	59	760 ILCS 3/402
60	60	760 ILCS 3/407
61	61	760 ILCS 3/409.5 new
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80	80	1 power of appointment over trust property; or
81	81	2 (C) is an identified charitable organization that will
82	82	3 or may receive distributions under the terms of the trust.
83	83	4 "Beneficiary" does not include a permissible appointee of
84	84	5 power of appointment, other than the holder of a presently
85	85	6 exercisable general power of appointment, until the power is
86	86	7 exercised in favor of such appointee.
87	87	8 (4) "Charitable interest" means an interest in a trust
88	88	9 that:
89	89	10 (A) is held by an identified charitable organization
90	90	11 and makes the organization a qualified beneficiary;
91	91	12 (B) benefits only charitable organizations and, if the
92	92	13 interest were held by an identified charitable
93	93	14 organization, would make the organization a qualified
94	94	15 beneficiary; or
95	95	16 (C) is held solely for charitable purposes and, if the
96	96	17 interest were held by an identified charitable
97	97	18 organization, would make the organization a qualified
98	98	19 beneficiary.
99	99	20 (5) "Charitable organization" means:
100	100	21 (A) a person, other than an individual, organized and
101	101	22 operated exclusively for charitable purposes; or
102	102	23 (B) a government or governmental subdivision, agency,
103	103	24 or instrumentality, to the extent it holds funds
104	104	25 exclusively for a charitable purpose.
105	105	26 (6) "Charitable purpose" means the relief of poverty, the
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116	116	1 advancement of education or religion, the promotion of health,
117	117	2 municipal or other governmental purpose, or another purpose
118	118	3 the achievement of which is beneficial to the community.
119	119	4 (7) "Charitable trust" means a trust, or portion of a
120	120	5 trust, created for a charitable purpose.
121	121	6 (8) "Community property" means all personal property,
122	122	7 wherever situated, that was acquired as or became, and
123	123	8 remained, community property under the laws of another
124	124	9 jurisdiction, and all real property situated in another
125	125	10 jurisdiction that is community property under the laws of that
126	126	11 jurisdiction.
127	127	12 (9) "Current beneficiary" means a beneficiary that on the
128	128	13 date the beneficiary's qualification is determined is a
129	129	14 distributee or permissible distributee of trust income or
130	130	15 principal. The term "current beneficiary" includes the holder
131	131	16 of a presently exercisable general power of appointment but
132	132	17 does not include a person who is a beneficiary only because the
133	133	18 person holds any other power of appointment. In a revocable
134	134	19 trust, "current beneficiary" does not include a person who may
135	135	20 receive trust assets only through the exercise of a power to
136	136	21 make a gift on behalf of the settlor.
137	137	22 (10) "Directing party" means any investment trust advisor,
138	138	23 distribution trust advisor, or trust protector.
139	139	24 (11) "Donor", with reference to a power of appointment,
140	140	25 means a person that creates a power of appointment.
141	141	26 (12) "Environmental law" means a federal, state, or local
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152	152	1 law, rule, regulation, or ordinance relating to protection of
153	153	2 the environment.
154	154	3 (13) "General power of appointment" means a power of
155	155	4 appointment exercisable in favor of a powerholder, the
156	156	5 powerholder's estate, a creditor of the powerholder, or a
157	157	6 creditor of the powerholder's estate.
158	158	7 (14) "Guardian of the estate" means a person appointed by
159	159	8 a court to administer the estate of a minor or adult
160	160	9 individual.
161	161	10 (15) "Guardian of the person" means a person appointed by
162	162	11 a court to make decisions regarding the support, care,
163	163	12 education, health, and welfare of a minor or adult individual.
164	164	13 (16) "Incapacitated" or "incapacity" means the inability
165	165	14 of an individual to manage property or business affairs
166	166	15 because the individual is a minor, adjudicated incompetent,
167	167	16 has an impairment in the ability to receive and evaluate
168	168	17 information or make or communicate decisions even with the use
169	169	18 of technological assistance; or is at a location that is
170	170	19 unknown and not reasonably ascertainable. Without limiting the
171	171	20 ways in which incapacity may be established, an individual is
172	172	21 incapacitated if:
173	173	22 (i) a plenary guardian has been appointed for the
174	174	23 individual under subsection (c) of Section 11a-12 of the
175	175	24 Probate Act of 1975;
176	176	25 (ii) a limited guardian has been appointed for the
177	177	26 individual under subsection (b) of Section 11a-12 of the
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188	188	1 Probate Act of 1975 and the court has found that the
189	189	2 individual lacks testamentary capacity; or
190	190	3 (iii) the individual was examined by a licensed
191	191	4 physician who determined that the individual was
192	192	5 incapacitated and the physician made a signed written
193	193	6 record of the physician's determination within 90 days
194	194	7 after the examination and no licensed physician
195	195	8 subsequently made a signed written record of the
196	196	9 physician's determination that the individual was not
197	197	10 incapacitated within 90 days after examining the
198	198	11 individual.
199	199	12 (17) "Internal Revenue Code" means the Internal Revenue
200	200	13 Code of 1986 as amended from time to time and includes
201	201	14 corresponding provisions of any subsequent federal tax law.
202	202	15 (18) "Interested persons" means: (A) the trustee; and (B)
203	203	16 all beneficiaries, or their respective representatives
204	204	17 determined after giving effect to the provisions of Article 3,
205	205	18 whose consent or joinder would be required in order to achieve
206	206	19 a binding settlement were the settlement to be approved by the
207	207	20 court. "Interested persons" includes a trust advisor,
208	208	21 investment advisor, distribution advisor, trust protector, or
209	209	22 other holder, or committee of holders, of fiduciary or
210	210	23 nonfiduciary powers, if the person then holds powers material
211	211	24 to a particular question or dispute to be resolved or affected
212	212	25 by a nonjudicial settlement in accordance with Section 111 or
213	213	26 by a judicial proceeding. "Interested persons" includes the
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224	224	1 members of a trust purpose committee and trust enforcers of a
225	225	2 virtuous trust created under Section 409.5.
226	226	3 (19) "Interests of the beneficiaries" means the beneficial
227	227	4 interests provided in the trust instrument.
228	228	5 (20) "Jurisdiction", with respect to a geographic area,
229	229	6 includes a State or country.
230	230	7 (21) "Legal capacity" means that the person is not
231	231	8 incapacitated.
232	232	9 (22) "Nongeneral power of appointment" means a power of
233	233	10 appointment that is not a general power of appointment.
234	234	11 (22.5) "Permissible appointee" means a person in whose
235	235	12 favor a powerholder may exercise a power of appointment.
236	236	13 (23) "Person" means an individual, estate, trust, business
237	237	14 or nonprofit entity, public corporation, government or
238	238	15 governmental subdivision, agency, or instrumentality, or other
239	239	16 legal entity.
240	240	17 (24) "Power of appointment" means a power that enables a
241	241	18 powerholder acting in a nonfiduciary capacity to designate a
242	242	19 recipient of an ownership interest in or another power of
243	243	20 appointment over the appointive property. The term "power of
244	244	21 appointment" does not include a power of attorney.
245	245	22 (25) "Power of withdrawal" means a presently exercisable
246	246	23 general power of appointment other than a power:
247	247	24 (A) exercisable by the powerholder as trustee that is
248	248	25 limited by an ascertainable standard; or
249	249	26 (B) exercisable by another person only upon consent of
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260	260	1 the trustee or a person holding an adverse interest.
261	261	2 (26) "Powerholder" means a person in which a donor creates
262	262	3 a power of appointment.
263	263	4 (27) "Presently exercisable power of appointment" means a
264	264	5 power of appointment exercisable by the powerholder at the
265	265	6 relevant time. The term "presently exercisable power of
266	266	7 appointment":
267	267	8 (A) includes a power of appointment exercisable only
268	268	9 after the occurrence of a specified event, the
269	269	10 satisfaction of an ascertainable standard, or the passage
270	270	11 of a specified time only after:
271	271	12 (i) the occurrence of the specified event;
272	272	13 (ii) the satisfaction of the ascertainable
273	273	14 standard; or
274	274	15 (iii) the passage of the specified time; and
275	275	16 (B) does not include a power exercisable only at the
276	276	17 powerholder's death.
277	277	18 (28) "Presumptive remainder beneficiary" means a
278	278	19 beneficiary of a trust, as of the date of determination and
279	279	20 assuming nonexercise of all powers of appointment, who either:
280	280	21 (A) would be a distributee or permissible distributee of trust
281	281	22 income or principal if the trust terminated on that date; or
282	282	23 (B) would be a distributee or permissible distributee of trust
283	283	24 income or principal if the interests of all distributees
284	284	25 currently eligible to receive income or principal from the
285	285	26 trust terminated on that date without causing the trust to
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296	296	1 terminate.
297	297	2 (29) "Property" means anything that may be the subject of
298	298	3 ownership, whether real or personal, legal or equitable, or
299	299	4 any interest therein.
300	300	5 (30) "Qualified beneficiary" means each current
301	301	6 beneficiary and presumptive remainder beneficiary.
302	302	7 (31) "Revocable", as applied to a trust, means revocable
303	303	8 by the settlor without the consent of the trustee or a person
304	304	9 holding an adverse interest. A revocable trust is deemed
305	305	10 revocable during the settlor's lifetime.
306	306	11 (32) "Settlor", except as otherwise provided in Sections
307	307	12 113 and 1225, means a person, including a testator, who
308	308	13 creates, or contributes property to, a trust. If more than one
309	309	14 person creates or contributes property to a trust, each person
310	310	15 is a settlor of the portion of the trust property attributable
311	311	16 to that person's contribution except to the extent another
312	312	17 person has the power to revoke or withdraw that portion.
313	313	18 (33) "Sign" means, with present intent to authenticate or
314	314	19 adopt a record:
315	315	20 (A) to execute or adopt a tangible symbol; or
316	316	21 (B) to attach to or logically associate with the
317	317	22 record an electronic symbol, sound, or process.
318	318	23 (34) "Spendthrift provision" means a term of a trust that
319	319	24 restrains both voluntary and involuntary transfer of a
320	320	25 beneficiary's interest.
321	321	26 (35) "State" means a State of the United States, the
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332	332	1 District of Columbia, Puerto Rico, the United States Virgin
333	333	2 Islands, or any territory or insular possession subject to the
334	334	3 jurisdiction of the United States. The term "state" includes
335	335	4 an Indian tribe or band recognized by federal law or formally
336	336	5 acknowledged by a state.
337	337	6 (36) "Terms of the trust" means:
338	338	7 (A) except as otherwise provided in paragraph (B), the
339	339	8 manifestation of the settlor's intent regarding a trust's
340	340	9 provisions as:
341	341	10 (i) expressed in the trust instrument; or
342	342	11 (ii) established by other evidence that would be
343	343	12 admissible in a judicial proceeding; or
344	344	13 (B) the trust's provisions as established, determined,
345	345	14 or modified by:
346	346	15 (i) a trustee or other person in accordance with
347	347	16 applicable law;
348	348	17 (ii) a court order; or
349	349	18 (iii) a nonjudicial settlement agreement under
350	350	19 Section 111.
351	351	20 (37) "Trust" means (A) a trust created by will, deed,
352	352	21 agreement, declaration, or other written instrument, or (B) an
353	353	22 oral trust under Section 407.
354	354	23 (38) "Trust accounting" means one or more written
355	355	24 communications from the trustee with respect to the accounting
356	356	25 year that describe: (A) the trust property, liabilities,
357	357	26 receipts, and disbursements, including the amount of the
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368	368	1 trustee's compensation; (B) the value of the trust assets on
369	369	2 hand at the close of the accounting period, to the extent
370	370	3 feasible; and (C) all other material facts related to the
371	371	4 trustee's administration of the trust.
372	372	5 (39) "Trust instrument" means the written instrument
373	373	6 stating the terms of a trust, including any amendment, any
374	374	7 court order or nonjudicial settlement agreement establishing,
375	375	8 construing, or modifying the terms of the trust in accordance
376	376	9 with Section 111, Sections 410 through 416, or other
377	377	10 applicable law, and any additional trust instrument under
378	378	11 Article 12.
379	379	12 (40) "Trustee" includes an original, additional, and
380	380	13 successor trustee, and a co-trustee.
381	381	14 (41) "Unascertainable beneficiary" means a beneficiary
382	382	15 whose identity is uncertain or not reasonably ascertainable.
383	383	16 (Source: P.A. 101-48, eff. 1-1-20; 102-279, eff. 1-1-22.)
384	384	17 (760 ILCS 3/110)
385	385	18 Sec. 110. Others treated as qualified beneficiaries.
386	386	19 (a) A person appointed to enforce a trust created for the
387	387	20 care of an animal or another noncharitable purpose as provided
388	388	21 in Section 408 or 409 has the rights of a qualified beneficiary
389	389	22 under this Code.
390	390	23 (b) The Attorney General has the rights of a qualified
391	391	24 beneficiary with respect to a charitable trust having its
392	392	25 principal place of administration in this State.
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403	403	1 (c) A trust enforcer of a virtuous trust as provided in
404	404	2 Section 409.5 has the rights of a qualified beneficiary under
405	405	3 this Code.
406	406	4 (Source: P.A. 101-48, eff. 1-1-20.)
407	407	5 (760 ILCS 3/402)
408	408	6 Sec. 402. Requirements for creation.
409	409	7 (a) A trust is created only if:
410	410	8 (1) the settlor or other person creating the trust has
411	411	9 capacity to create a trust;
412	412	10 (2) the settlor or other person creating the trust
413	413	11 indicates an intention to create the trust;
414	414	12 (3) the trust has a definite beneficiary or is:
415	415	13 (A) a charitable trust;
416	416	14 (B) a trust for the care of an animal, as provided
417	417	15 in Section 408; or
418	418	16 (C) a trust for a noncharitable purpose, as
419	419	17 provided in Section 409; or
420	420	18 (D) a virtuous trust, as provided in Section
421	421	19 409.5;
422	422	20 (4) the trustee has duties to perform; and
423	423	21 (5) the same person is not the sole trustee and sole
424	424	22 beneficiary.
425	425	23 (b) A beneficiary is definite if the beneficiary can be
426	426	24 ascertained now or in the future, subject to any applicable
427	427	25 rule against perpetuities.
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438	438	1 (c) A power in a trustee to select a beneficiary from an
439	439	2 indefinite class is valid. If the power is not exercised
440	440	3 within a reasonable time, the power fails and the property
441	441	4 subject to the power passes to the persons who would have taken
442	442	5 the property had the power not been conferred.
443	443	6 (Source: P.A. 101-48, eff. 1-1-20; 102-279, eff. 1-1-22.)
444	444	7 (760 ILCS 3/407)
445	445	8 Sec. 407. Evidence of oral trust. Except as required by a
446	446	9 statute other than this Code or by Section 409.5, a trust need
447	447	10 not be evidenced by a trust instrument, but the creation of an
448	448	11 oral trust and its terms may be established only by clear and
449	449	12 convincing evidence.
450	450	13 (Source: P.A. 101-48, eff. 1-1-20.)
451	451	14 (760 ILCS 3/409.5 new)
452	452	15 Sec. 409.5. Virtuous trust.
453	453	16 (a) A trust may be created for a business or other
454	454	17 noncharitable purpose without a definite or definitely
455	455	18 ascertainable beneficiary. The business purpose may seek
456	456	19 economic and noneconomic benefits.
457	457	20 (b) A trust authorized by this Section shall be created by
458	458	21 a written instrument. The trust instrument may designate one
459	459	22 or more categories of stakeholders for whose benefit the trust
460	460	23 is created, which may include, but shall not be limited to,
461	461	24 employees, suppliers, and customers of a business or its
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472	472	1 subsidiaries or communities in which offices or other
473	473	2 establishments of a business or its subsidiaries are located.
474	474	3 (c) A trust authorized by this Section may hold an
475	475	4 ownership interest of any corporation, partnership, limited
476	476	5 partnership, cooperative, limited liability company, limited
477	477	6 liability partnership, or joint venture.
478	478	7 (d) A trustee of a trust created under this Section shall
479	479	8 not be deemed to violate the trustee's duties under Article 9
480	480	9 by virtue of the trustee investing and managing the trust's
481	481	10 assets pursuant to the terms and the purposes of the trust,
482	482	11 which may include retaining an ownership interest in a
483	483	12 specific corporation, partnership, limited partnership,
484	484	13 cooperative, limited liability company, limited liability
485	485	14 partnership, or joint venture.
486	486	15 (e) A trust authorized by this Section shall be exempt
487	487	16 from the common law rule against perpetuities.
488	488	17 (f) A trust authorized by this Section may be enforced by
489	489	18 one or more trust enforcers appointed in the trust instrument,
490	490	19 and the trust instrument may provide a process for appointing
491	491	20 successor trust enforcers. If at any time no person is acting
492	492	21 as trust enforcer, the court shall appoint one or more trust
493	493	22 enforcers. Each trust enforcer shall enforce the purpose and
494	494	23 the terms of the trust and shall exercise authority as a
495	495	24 fiduciary. If more than one person is acting as a trust
496	496	25 enforcer, action may be taken by a majority of the persons
497	497	26 acting as trust enforcers. A trust enforcer is not a
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508	508	1 beneficiary of a trust created pursuant to this Section, but a
509	509	2 trust enforcer has the rights of a qualified beneficiary.
510	510	3 (g) A trust authorized by this Section must have a trust
511	511	4 purpose committee with at least 3 persons as members. Each
512	512	5 member of the trust purpose committee shall exercise authority
513	513	6 as a fiduciary. The trust instrument may appoint the initial
514	514	7 members of the trust purpose committee and may provide a
515	515	8 process for appointing successor members. A vacancy on the
516	516	9 trust purpose committee must be filled if the trust purpose
517	517	10 committee has fewer than 3 members.
518	518	11 (h) A vacancy on the trust purpose committee that is
519	519	12 required to be filled must be filled in the following order of
520	520	13 priority:
521	521	14 (1) by a person designated in the trust instrument or
522	522	15 selected through a process provided in the trust
523	523	16 instrument;
524	524	17 (2) by a person appointed by unanimous agreement of
525	525	18 the trust enforcers; or
526	526	19 (3) by a person appointed by the court.
527	527	20 (i) Unless the trust instrument provides otherwise and
528	528	21 except as provided in paragraph (4) of subsection (j) or
529	529	22 subsection (o), the trust purpose committee may take action by
530	530	23 a majority vote of its members.
531	531	24 (j) Unless the trust instrument provides otherwise, the
532	532	25 trust purpose committee has the power, in carrying out the
533	533	26 purposes of the trust and after notice to the trust enforcers,
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544	544	1 to:
545	545	2 (1) remove a trustee, with or without cause;
546	546	3 (2) appoint one or more successor trustees or
547	547	4 co-trustees;
548	548	5 (3) remove a trust enforcer, with or without cause;
549	549	6 (4) remove a member of the trust purpose committee, by
550	550	7 unanimous vote of all other members of the trust purpose
551	551	8 committee; and
552	552	9 (5) direct distributions from the trust.
553	553	10 (k) Property of a trust authorized by this Section may be
554	554	11 applied only to its intended use. No court shall have
555	555	12 authority to determine that the value of the trust property
556	556	13 exceeds the amount required for the intended use.
557	557	14 (l) Unless the trust instrument provides otherwise, a
558	558	15 member of the trust purpose committee or a trust enforcer may
559	559	16 resign:
560	560	17 (1) after at least 30 days' notice to the trustee, all
561	561	18 other trust enforcers, and all other members of the trust
562	562	19 purpose committee; or
563	563	20 (2) at any time with the approval of the court.
564	564	21 (m) The trust purpose committee must send a report to the
565	565	22 trustee and to the trust enforcers at least annually showing
566	566	23 receipts and disbursements and listing the trust property and
567	567	24 liabilities. The trust purpose committee shall keep the
568	568	25 trustee and the trust enforcers reasonably informed about the
569	569	26 administration of the trust and of the material facts
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580	580	1 necessary for the trustee to comply with the trustee's duties
581	581	2 under Section 813.1 and for the trust enforcers to protect the
582	582	3 purposes of the trust.
583	583	4 (n) A trustee of a trust authorized by this Section shall
584	584	5 act in accordance with a direction from the trust purpose
585	585	6 committee unless the action is manifestly contrary to the
586	586	7 terms of the trust or the trustee knows that the action would
587	587	8 constitute a serious breach of a fiduciary duty that the trust
588	588	9 purpose committee, the trust enforcer, or the trustee owes to
589	589	10 the trust. A trustee is liable only for willful misconduct and
590	590	11 is not liable for reliance on documents provided by the trust
591	591	12 purpose committee or the trust enforcer.
592	592	13 (o) Unless the terms of the trust provide otherwise, the
593	593	14 trust purpose committee and the trust enforcers, acting
594	594	15 together, may modify or terminate a trust authorized by this
595	595	16 Section by unanimous agreement of the members of the trust
596	596	17 purpose committee and unanimous agreement of the trust
597	597	18 enforcers.
598	598	19 (p) Upon termination of a trust authorized by this
599	599	20 Section, the trustee shall distribute all remaining trust
600	600	21 property as the terms of the trust provide, or if the terms of
601	601	22 the trust do not provide for complete distribution of the
602	602	23 property, as a court determines to be consistent with the
603	603	24 purposes for which the trust was created.
604	604	25 (q) A person serving as a trustee may not serve as a trust
605	605	26 enforcer or as a member of the trust purpose committee, and a
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