Business Advice and Financial Planning

(Dillard, R-Westmont; McAsey, D-Romeoville) amends the virtual representation section of this Act. It expands the use of settlement agreements in resolving disputes, ambiguities, and operational difficulties in trust administration. These settlements require unanimous written agreement by the trustee and all current and presumptive remainder beneficiaries. Effective January 1, 2015.

(Barickman, R-Bloomington; Sims, D-Chicago) makes several changes to the Illinois Transfer on Death Instrument Act. (1) Makes the recording of a notice of death affidavit a permissive action that can be taken by the beneficiary to confirm title to the residential real estate but is not a mandatory requirement to perfect title. (2) Allows a bona fide purchaser for value and without notice before the recordation of a lis pendens for an action to set aside or contest the transfer on death instrument ("TODI") to take free and clear of any such action or contest. (3) Clarifies that acceptance of the TODI by the beneficiary during the owner's lifetime is not a requirement. (4) Eliminates the right of an agent acting under a durable power of attorney from creating or revoking a TODI. But it doesn't affect the agent's right or power to sell, transfer, or encumber the residential real estate if so authorized under the POA. (5) Clarifies that only substantial compliance with the execution formalities is required. Effective January 1, 2015.

(Harmon, D-Oak Park; Currie, D-Chicago) amends several acts governing business organizations regarding director and officer liability during periods of dissolution. Reinstatement of the organization reinstates the corporate liability shield for directors, officers, employees, and agents of the organization for actions taken during the period of dissolution. Clarifies that directors are not liable for actions that are necessary and appropriate to wind up and liquidate a corporation’s business and affairs. Effective January 1, 2015.

(Flowers, D-Chicago; Hutchinson, D-Chicago Heights) amends the Illinois Human Rights Act to prohibit unlawful discrimination by an employer for pregnancy and require reasonable accommodation to a job applicant or employee for issues related to pregnancy or childbirth. Passed both chambers.

(Silverstein, D-Chicago; Welch, D-Westchester) creates a civil action in the Probate Act if a “presumptively void transfer” is challenged that applies to “caregivers.” If a “transfer instrument” transfers property in excess of $20,0000 to a caregiver and is challenged, it creates a rebuttable presumption that this transfer is void. A caregiver is defined as anyone who has assumed responsibility for all or a portion of the care of another person who needs assistance with daily living activities. A caregiver doesn’t include a “family member” of the person receiving assistance. There are two exceptions to this rebuttable presumption. (1) If the transferee’s share under the transfer instrument is not greater than the share of the transferee was entitled to under the transferor’s testamentary plan in effect before the transferee became a caregiver. (2) If the transfer was not the product of fraud, duress, or undue influence as proved by clear and convincing evidence. If the caregiver attempts and fails to overcome the presumption, the caregiver must bear the cost of the proceedings, including reasonable attorney’s fees. The statute of limitation for challenging a presumptively void transfer is two years unless the Probate Act requires a shorter period. Senate Bill 1048 applies only transfer instruments executed after January 1, 2015. Passed both chambers.

(Harmon, D-Oak Park) amends this Act affecting director and officer liability if the entity has been dissolved. It provides that directors, officers, and others are not liable for liabilities incurred during periods of administrative dissolution if the entity is reinstated. Makes similar changes to the General Not For Profit Corporation Act of 1986, Limited Liability Company Act, and Uniform Limited Partnership Act (2001). Passed the Senate and now in the House.

(Harmon, D-Oak Park) provides that the dissolution of a corporation does not impair a civil remedy available to or against the corporation for any liability accrued or incurred (rather than incurred) either before, at the time of, or after (rather than before) the dissolution. Provides that this provision does not extend any applicable statute of limitations. Awaiting passage in the Senate.