Illinois Compiled Statutes
760 ILCS 3/ - Illinois Trust Code.
Article 14 - Perpetuities

(760 ILCS 3/Art. 14 heading)

(760 ILCS 3/1401)
Sec. 1401. Article title. Except for Section 1407, this Article may be referred to as the Law Concerning Perpetuities.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1402)
Sec. 1402. Purpose. This Article modifies the common law rule of property known as the rule against perpetuities, that, except as modified by statutes in force at the effective date of this Article and by this Article, shall remain in full force and effect.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1403)
Sec. 1403. Definitions and terms. As used in this Article unless the context otherwise requires:
(a) Any reference in this Article to income to be "paid" or to income "payments" or to "receiving" income includes income payable or distributable to or applicable for the benefit of a beneficiary.
(b) "Instrument" means any writing pursuant to which any legal or equitable interest in property or in the income therefrom is affected, disposed of, or created.
(c) "Qualified perpetual trust" means any trust created by any written instrument executed on or after January 1, 1998, including an amendment to an instrument in existence before that date and the exercise of a power of appointment granted by an instrument executed or amended on or after that date:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1404)
Sec. 1404. Application of rule against perpetuities.
(a) The rule against perpetuities does not apply:
(b) The period of the rule against perpetuities shall not commence to run in connection with any disposition of property or interest therein, and no instrument shall be regarded as becoming effective for purposes of the rule against perpetuities, and no interest or power shall be deemed to be created for purposes of the rule against perpetuities as long as, by the terms of the instrument, the maker of the instrument has the power to revoke the instrument or to transfer or direct to be transferred to himself or herself the entire legal and equitable ownership of the property or interest therein.
(c) In determining whether an interest violates the rule against perpetuities:
(d) Paragraphs (2), (3), and (6) of subsection (a) and subsection (b) are declaratory of existing law.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1405)
Sec. 1405. Trusts.
(a) Subject to subsections (e) and (f), a trust containing any limitation that, but for this subsection, would violate the rule against perpetuities as modified by Section 1404 shall terminate at the expiration of a period of:
(b) Subject to subsections (c), (d) and (e), when a trust terminates because of the application of subsection (a), the trustee shall distribute the principal to those persons who would be the heirs at law of the maker of the instrument if he or she died at the expiration of the period specified in subsection (a) and in the proportions then specified by statute, unless the trust was created by the exercise of a power of appointment and then the principal shall be distributed to the person who would have received it if the power had not been exercised.
(c) Before any distribution of principal is made pursuant to subsection (b), the trustee shall distribute, out of principal, to each living beneficiary who, but for termination of the trust because of the application of subsection (a), would have been entitled to be paid income after the expiration of the period specified in subsection (a), an amount equal to the present value (determined as provided in subsection (d)) of the income that the beneficiary would have been entitled to be paid after the expiration of that period.
(d) In determining the present value of income for purposes of any distribution to a beneficiary pursuant to subsection (c):
(e) This Section applies only when a trust would violate the rule against perpetuities as modified by Section 1404 and does not apply to any trust that would have been valid apart from this Article.
(f) This Section does not apply when a trust violates the rule against perpetuities because the trust estate may not vest in the trustee within the period of the rule.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1406)
Sec. 1406. Applicability. Sections 1401 through 1405 apply only to instruments, including instruments that exercise a power of appointment, that become effective after September 22, 1969.

(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 3/1407)
Sec. 1407. Vesting of any limitation of property.
(a) This Section may be referred to as the Perpetuities Vesting Law.
(b) The vesting of any limitation of property, whether created in the exercise of a power of appointment or in any other manner, shall not be regarded as deferred for purposes of the rule against perpetuities merely because the limitation is made to the estate of a person or to a personal representative, or to a trustee under a will, or to take effect on the probate of a will.
(c) This Section applies only to limitations created after July 1, 1952.

(Source: P.A. 101-48, eff. 1-1-20.)