HB4594 Summary

• Creates a new "virtuous trust" category under Illinois Trust Code allowing trusts for business or other noncharitable purposes without requiring a definite or ascertainable beneficiary.

• Virtuous trusts must be created by written instrument and may designate stakeholder categories including employees, suppliers, customers, and community members for whose benefit the trust operates.

• Establishes mandatory governance structure requiring at least a 3-member trust purpose committee with fiduciary duties, appointed trust enforcers with qualified beneficiary rights, and specific procedures for filling vacancies and removing members.

• Exempts virtuous trusts from the common law rule against perpetuities and allows trustees to retain concentrated ownership interests in specific corporations or partnerships without violating fiduciary duties when consistent with trust purposes.

• Permits the trust purpose committee and trust enforcers acting unanimously to modify or terminate the trust, with remaining property distributed per trust terms or by court determination consistent with the trust's stated purposes.