Trusts and Trustees Act and Crummey Trusts (Illinois)

By Matthew A. Quick Senate Bill 2509, codified at 755 ILCS 5/16.2, provides the following:

A beneficiary of a trust may not be considered to be a settlor or to have made a transfer to the trust merely because of a lapse, release, or waiver of his or her power of withdrawal to the extent that the value of the affected property does not exceed the greatest of the amounts specified in Sections 2041(b)(2), 2514(e), and 2503(b) of the Internal Revenue Code.

Practically speaking, this section simply clarifies the maximum amount that is allowed to pass to a Crummey Trust is the same under Illinois law as it it under the Internal Revenue Code.