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SB 1777

BANKING&PROBATE-FINANCE/NOTICE

104th Regular Session Introduced by Margaret Croke and 5 co-sponsors

Allows financial institutions to share a decedent’s financial records with estate representatives and provides liability protections when relying on verified letters.

Public Act . . . . . . . . . 104-0123
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Bill Summary · SB 1777

Summary — SB 1777 (Public Act 104-0123)

Status: Enacted (Public Act 104-0123). Governor approved 8/1/2025. Effective date: January 1, 2026. Sponsors: Sen. Mark L. Walker; Chief House Sponsor Rep. Margaret Croke; co-sponsors include Dan Ugaste, Jil Tracy, Daniel Didech, Jennifer Gong‑Gershowitz.

Purpose

SB 1777 makes targeted changes to Illinois law governing financial-record confidentiality, estate administration, payable‑on‑death/trust accounts, and electronic consents. The bill clarifies that financial institutions may share customer information with lawful estate representatives, provides protections for third parties transacting with executors/administrators, updates rules for payable‑on‑death accounts, and aligns state electronic‑consent requirements with the federal ESIGN Act.

Key provisions

  • Customer financial records (Illinois Banking Act, Sec. 48.1; mirrored changes to the Savings Bank Act and Illinois Credit Union Act)

    • Explicitly permits furnishing of a customer’s financial information to an executor, executrix, administrator, or other lawful representative of the customer’s estate.
    • Retains existing confidentiality exceptions (regulatory examiners, law enforcement, fraud prevention, inter‑bank exchanges, statutory reporting, etc.).

  • Probate Act changes

    • Establishes a rebuttable presumption that a person or entity doing business on behalf of — or at the direction of — an executor or administrator is entitled to assume the executor/administrator is lawfully authorized when the letters testamentary or of administration were issued solely to that executor/administrator.
    • If letters name co‑executors/co‑administrators, the presumption applies only when the business/transaction is performed on behalf of or at the direction of all listed co‑executors/co‑administrators.
    • Provides that persons, corporations, and financial institutions that rely on such verification are released from liability for acting on that presumption.

  • Trust and Payable‑on‑Death accounts

    • Allows any holder of an account to elect a per stirpes distribution option: if a named (natural person) beneficiary predeceases the last surviving account holder, the beneficiary’s descendants may inherit by representation.

  • Electronic notices and consents (Financial Institutions Electronic Documents and Digital Signature Act)

    • Clarifies that a customer's consent to electronic transactions under the federal Electronic Signatures in Global and National Commerce Act (ESIGN) satisfies applicable state consent requirements.

Who is affected

  • Financial institutions (banks, savings banks, credit unions): gain explicit authority to share records with estate representatives and liability protections when relying on verified letters; must continue to observe other disclosure rules.
  • Executors, administrators, and estate representatives: improved practical access to decedent account information and clearer ability to manage estate assets.
  • Account holders: new option (if elected by account holder) to have POD distributions go per stirpes to descendants.
  • Third parties (attorneys, vendors, persons transacting with estates): receive legal clarity and protections when acting on verified letters.

Timeline & procedural notes

  • Introduced: 2/28/2025. Passed both chambers (House vote 115‑0; earlier Senate passage). Sent to Governor 6/20/2025; approved 8/1/2025. Effective January 1, 2026.
  • Implements changes across multiple acts (Banking Act, Savings Bank Act, Illinois Credit Union Act, Trust & POD Accounts Act, Financial Institutions Electronic Documents and Digital Signature Act, and the Probate Act of 1975).

Practical implications

The bill reduces administrative friction for estate administration by allowing institutions to disclose records to estate representatives and by protecting good‑faith actors who rely on verified court letters. It modernizes consent rules for electronic transactions to align with federal standards and gives account holders an explicit per stirpes option for beneficiary succession. Institutions should update policies and procedures (record‑release practices, verification processes for letters, disclosures about POD options, and electronic consent workflows) before the effective date.

Compiled from official sources — confirm details with the bill’s official record.

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