Changes and Proposed Changes to the Trust Law for 2025: 

As of January 1, 2025, several significant amendments to Illinois trust law have come into effect, impacting trustees, beneficiaries, and estate planners. These changes aim to enhance the management and administration of trusts within the state.

Trustee Responsibilities for Unclaimed Property

Senate Bill 3343 (SB 3343), signed into law on August 9, 2024, introduces specific duties for trustees concerning unclaimed or presumptively abandoned property. The bill amends Section 809 of the Illinois Trust Code to explicitly require trustees to search for and claim any such property. Additionally, Section 810 has been updated to mandate that trustees maintain trust records for a minimum of seven years after the trust’s dissolution. Before destroying these records, trustees must conduct a reasonable search for any trust property that may be unclaimed or has been reported to a state unclaimed property administrator. These provisions took effect on January 1, 2025.

Repeal of the Illinois TRUST Act

House Bill 1345 (HB 1345), introduced in the 2025-2026 legislative session, proposes the repeal of the Illinois TRUST Act. The bill also suggests corresponding changes to the Illinois Identification Card Act and the Illinois Vehicle Code. As of now, HB 1345 is under consideration, and its potential impact on trust law will depend on legislative developments.

Implications for Estate Planning

These legislative changes underscore the importance of proactive estate planning. Trustees should familiarize themselves with the new requirements to ensure compliance, particularly regarding the management of unclaimed property and record-keeping obligations. Beneficiaries and estate planners should stay informed about the potential repeal of the Illinois TRUST Act, as it may influence future trust administration and estate planning strategies.

In light of these developments, consult with the legal professionals at Ozinga, Campbell, Lord and Franco to ensure you nativgate your family’s trust adminstration with ease.