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SB 1667

TRUST CODE-UNCLAIMED PROPERTY

104th Regular Session Introduced by Diane Blair-Sherlock and 2 co-sponsors

The act expands unclaimed property rules and duties, lengthening dormancy for some accounts to 20 years and requiring holders to hold funds in trust for the state, with broader dis

Public Act . . . . . . . . . 104-0116
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Bill Summary · SB 1667

Summary — SB 1667 (Public Act 104‑0116) — Trust Code; Revised Uniform Unclaimed Property Act

Status and timing
- Enacted as Public Act 104‑0116 in 2025 (signed by the Governor). The enrolled/printed bill contains multiple effective‑date provisions; some amendments specify application beginning January 1, 2026 and other enrolled language references immediate effectiveness or later specified dates. Review the enrolled Public Act text for exact effective dates of individual sections before compliance.

Purpose
- To (1) strengthen trustees’ recordkeeping and duties to locate and protect trust property, and (2) revise Illinois’s Revised Uniform Unclaimed Property Act (RUUPA) to expand reporting obligations, change presumption rules for certain accounts, regulate “finders,” and improve state coordination for locating apparent owners.

Key substantive provisions
1. Trust Code changes
- Trustees must keep adequate trust administration records.
- Trustees must retain a copy of the governing trust instrument for at least 7 years after trust termination.
- Before destroying trust records, trustees must conduct a reasonable search for trust property that is presumptively abandoned or already reported to a state unclaimed‑property administrator.

  1. Revisions to the Revised Uniform Unclaimed Property Act
    • New/changed definitions (e.g., “finder,” “game‑related content,” “escheat fee”).
    • Presumption period extended for certain tax‑deferred accounts (including health savings accounts and other accounts qualifying for U.S. tax deferral): property in those accounts is presumed abandoned 20 years after account opening.
    • Holders of property presumed abandoned must hold the property in trust for the State Treasurer on behalf of the owner starting from the presumption date.
    • State employee final compensation: state agencies must report final compensation due to a State employee who dies while employed as unclaimed property to the Treasurer’s office (with procedural rules for reporting/remittance).
    • Notice and escheat protections: before escheating presumed‑abandoned property allegedly owned by a State agency to the General Revenue Fund, the Treasurer must provide written notice to the affected State agency and the Governor’s Office of Management and Budget and allow a one‑year period.
    • Cooperation among state offices: grants authority for state officers, agencies, and political subdivisions to make books/records available to the Treasurer to help locate apparent owners; allows data‑sharing agreements.
    • Finder regulation: establishes a licensure/qualification regime for private “finders” who locate, recover, purchase or assist in recovery of property from the Treasurer; sets procedures for owner/finder agreements.
    • Regulatory authority: Secretary of the Department of Financial & Professional Regulation (DFPR) can order a regulated person to immediately report and remit property to protect owner interests; Treasurer authorized to adopt implementing rules.

Who is affected
- Trustees and fiduciaries (additional recordkeeping/search duties).
- Financial institutions, plan administrators, and other holders of dormant or unclaimed property (new presumption rules, reporting, and trust holding obligation).
- State agencies (reporting obligations; notification before escheat).
- Apparent owners and owners of tax‑deferred accounts (longer presumption period for some accounts; new owner/finder rules).
- Private “finders” (licensing and conduct requirements).
- The State Treasurer and DFPR (new enforcement and rulemaking responsibilities).

Potential impacts
- Increased compliance and recordkeeping burdens on trustees, holders, and finders.
- Greater state access to locate owners and a longer dormancy period for some tax‑advantaged accounts (20 years) before escheat.
- Additional procedural protections for State agencies and owners prior to escheat.

For implementation and compliance: consult the final enrolled Public Act text and any Treasurer/DFPR rules issued under the Act for effective dates, procedural forms, and licensing requirements.

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

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