HB5883 Summary

• Creates "qualified perpetual trusts" in Illinois that are exempt from the rule against perpetuities with respect to vesting of property interests.

• Qualified perpetual trusts can be created through express terms in the trust document by specific reference to the law, stating the rule against perpetuities does not apply, or demonstrating intent to establish such a trust.

• Trustees of qualified perpetual trusts have unrestricted power to sell or convey property interests after the traditional perpetuities period ends, with no time limit required for vesting of interests.

• For non-qualified perpetual trusts exempt from generation-skipping transfer tax, language that would extend vesting or termination beyond 21 years after the death of specified lives in being is rendered inoperative to that extent.

• Modifies existing perpetuities law to allow powers of appointment over qualified perpetual trusts to be exercised without postponing vesting of property interests.