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Bill

SB 264

TRUST CD-VIRTUOUS TRUSTS

104th Regular Session Introduced by Robert Peters

Illinois bill creates TRUST CD charitable remainder unitrust structure allowing income distribution to beneficiaries while directing assets to charity with potential estate tax advantages.

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 264

Legislative bill overview

SB 264 creates a new trust vehicle in Illinois called "Charitable Remainder Unitrust with Sequestered Tangible Charitable Donations" (TRUST CD), designed to combine charitable giving with asset protection features. The bill establishes specific legal structures and tax treatment for trusts that distribute income to beneficiaries while ultimately directing remaining assets to charitable organizations.

Why is this important

This legislation could affect wealthy Illinoisans' estate planning strategies by creating a new mechanism to reduce taxable estates while maintaining income streams and receiving charitable tax deductions. It also potentially impacts charitable organizations that would be beneficiaries of these trusts, and may have revenue implications for the state depending on how it interacts with Illinois' transfer tax.

Potential points of contention

  • Complexity and access: The specialized nature of this trust type may primarily benefit high-net-worth individuals with sophisticated tax planning resources, raising equity concerns about unequal access to tax advantages
  • State revenue impact: Charitable trusts can reduce estate tax collections; opponents may worry about foregone tax revenue while supporters argue it encourages charitable giving
  • Definition and oversight: The bill's specific requirements for "sequestered tangible charitable donations" and trust administration may lack sufficient clarity, potentially creating enforcement or interpretation disputes

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

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