Gift Annuity State Regulations

Illinois


Intestacy


General Definition

A decedent's intestate estate is defined as any real and personal estate of a testator that is not bequeathed by his will. Sec. 5/4-14.

Order of Distribution

The intestate real and personal estate of a decedent will be distributed in the following order:

  1. If there is a surviving spouse and also a descendant of the decedent: 1/2 of the entire estate to the surviving spouse and 1/2 to the decedent's descendants per stirpes.
  2. If there is no surviving spouse but a descendant of the decedent: the entire estate to the decedent's descendants per stirpes.
  3. If there is a surviving spouse but no descendant of the decedent: the entire estate to the surviving spouse.
  4. If there is no surviving spouse or descendant but a parent, brother, sister or descendant of a brother or sister of the decedent: the entire estate to the parents, brothers and sisters of the decedent in equal parts, allowing to the surviving parent if one is dead a double portion and to the descendants of a deceased brother or sister per stirpes the portion which the deceased brother or sister would have taken if living. (5) If there is no surviving spouse, descendant, parent, brother, sister or descendant of a brother or sister of the decedent but a grandparent or descendant of a grandparent of the decedent: (i) 1/2 of the entire estate to the decedent's maternal grandparents in equal parts or to the survivor of them, or if there is none surviving, to their descendants per stirpes, and (ii) 1/2 of the entire estate to the decedent's paternal grandparents in equal parts or to the survivor of them, or if there is none surviving, to their descendants per stirpes. If there is no surviving paternal grandparent or descendant of a paternal grandparent, but a maternal grandparent or descendant of a maternal grandparent of the decedent: the entire estate to the decedent's maternal grandparents in equal parts or to the survivor of them, or if there is none surviving, to their descendants per stirpes. If there is no surviving maternal grandparent or descendant of a maternal grandparent, but a paternal grandparent or descendant of a paternal grandparent of the decedent: the entire estate to the decedent's paternal grandparents in equal parts or to the survivor of them, or if there is none surviving, to their descendants per stirpes.
  5. If there is no surviving spouse, descendant, parent, brother, sister, descendant of a brother or sister or grandparent or descendant of a grandparent of the decedent: (i) 1/2 of the entire estate to the decedent's maternal great grandparents in equal parts or to the survivor of them, or if there is none surviving, to their descendants per stirpes, and (ii) 1/2 of the entire estate to the decedent's paternal great grandparents in equal parts or to the survivor of them, or if there is none surviving, to their descendants per stirpes. If there is no surviving paternal great grandparent or descendant of a paternal great grandparent, but a maternal great grandparent or descendant of a maternal great grandparent of the decedent: the entire estate to the decedent's maternal great grandparents in equal parts or to the survivor of them, or if there is none surviving, to their descendants per stirpes. If there is no surviving maternal great grandparent or descendant of a maternal great grandparent, but a paternal great grandparent or descendant of a paternal great grandparent of the decedent: the entire estate to the decedent's paternal great grandparents in equal parts or to the survivor of them, or if there is none surviving, to their descendants per stirpes.
  6. If there is no surviving spouse, descendant, parent, brother, sister, descendant of a brother or sister, grandparent, descendant of a grandparent, great grandparent or descendant of a great grandparent of the decedent: the entire estate in equal parts to the nearest kindred of the decedent in equal degree (computing by the rules of the civil law) and without representation. Sec. 5/2-1.

If there is no taker under Illinois law, real estate and personal estate passes to the county in which it is physically located and all other personal property or proceeds from the sale of personal property passes to the Illinois State Treasurer. Sec. 5/2-1(h).

Will Qualifications


Common Law or Community Property

Illinois is a common law, elective share state. Sec. 5/2-8.

Capacity

Every person who has attained the age of 18 years and is of sound mind and memory has power to bequeath by will the real and personal estate which he has at the time of his death. Sec. 5/4-1.

Drafting

Every will must be in writing, signed by the testator or by some person in his presence and by his direction and attested in the presence of the testator by 2 or more credible witnesses. Sec. 5/4-3(a). A will that qualifies as an international will under the Uniform International Wills Act is considered to meet all the requirements for a formal will. Sec. 5/4-3(b).

If any beneficial legacy or interest is given in a will to a person attesting its execution or to his spouse, the legacy or interest is void as to that beneficiary and all persons claiming under him, unless the will is otherwise duly attested by a sufficient number of witnesses exclusive of that person and he may be compelled to testify as if the legacy or interest had not been given, but the beneficiary is entitled to receive so much of the legacy or interest given to him by the will as does not exceed the value of the share of the testator's estate to which he would be entitled were the will not established. Sec. 5/4-6 (a).

Beneficiaries

A beneficiary includes, in the case of a decedent's estate, an heir, legatee and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary

Modifications

A will or any part thereof is revoked only by:

  1. Burning, cancelling, tearing or obliterating it by the testator himself or by some person in his presence and by his direction and consent,
  2. The execution of a later will declaring the revocation,
  3. A later will to the extent that it is inconsistent with the prior will, or
  4. The execution of an instrument declaring the revocation and signed and attested in the manner prescribed for the signing and attestation of a will. Sec. 5/4-7(a).

No will or any part of a will is revoked by any change in the circumstances, condition or marital status of the testator, except that dissolution of marriage or declaration of invalidity of the marriage of the testator revokes every legacy or interest or power of appointment given to or nomination to fiduciary office of the testator's former spouse in a will executed before the entry of the judgment of dissolution of marriage or declaration of invalidity of marriage and the will takes effect in the same manner as if the former spouse had died before the testator. A will which is totally revoked in any manner is not revived other than by its re execution or by an instrument declaring the revival and signed and attested in the manner prescribed by this Article for the signing and attestation of a will. If a will is partially revoked by an instrument which is itself revoked, the revoked part of the will is revived and takes effect as if there had been no revocation. Sec. 5/4-7(b) and (c).

An addition to a will or an alteration, substitution, interlineation or deletion of any part of a will which does not constitute a revocation of a will is of no effect, unless made by the testator or by some person in his presence and by his direction and consent and unless the will is thereafter signed and attested in the manner prescribed by this Article for the execution of a will. Sec. 5/4-9.

Probate Process


Naming of Personal Representative

When a will is admitted to probate, letters testamentary will be issued to the executor named in the will if he qualifies and accepts the office, unless the issuance of letters is excused. Sec. 5/6-8.

A person who has attained the age of 18 years and is a resident of the United States, is not of unsound mind, is not an adjudged disabled person and has not been convicted of a felony, is qualified to act as executor. Sec. 5/6-13(a).

Submission of Will

Immediately upon the death of the testator, any person who has the testator's will in his possession must file it with the clerk of the court of the proper county and upon failure or refusal to do so, the court on its motion or on the petition of any interested person may issue an attachment and compel the production of the will, subject to the provisions of Section 5.15 of the Secretary of State Act. Sec. 5/6-1(a).

If any person willfully alters or destroys a will without the direction of the testator or willfully secretes it for the period of 30 days after the death of the testator is known to him, the person so offending, on conviction thereof, shall be sentenced as in cases of theft of property classified as a Class 3 felony by the law in effect at the date of the offense. The 30-day period does not apply to the Secretary of State when acting pursuant to Section 5.15 of the Secretary of State Act. Sec. 5/6-1(b).

Within 30 days after a person acquires knowledge that he is named as executor of the will of a deceased person, he will either institute a proceeding to have the will admitted to probate in the court of the proper county or declare his refusal to act as executor. If he fails to do so, except for good cause shown, the court on its motion or on the petition of any interested person may deny him the right to act as executor and letters of office may be issued by the court as if the person so named were disqualified to act as executor. Sec. 5/6-3.

Notifications

Not more than 14 days after entry of an order admitting or denying admission of a will to probate or appointing a representative, the representative or, if none, the petitioner must mail a copy of the petition to admit the will or for letters and a copy of the order showing the date of entry to each of the testator's heirs and legatees whose names and post office addresses are stated in the petition. If the name or post office address of any heir or legatee is not stated in the petition, the petitioner must publish a notice once a week for three successive weeks, the first publication to be not more than 14 days after entry of the order, describing the order and the date of entry. The notice must be published in a newspaper published in the county where the order was entered. When the petition names a trustee of a trust, it is not necessary to publish for or mail copies of the petition and order to any beneficiary of the trust who is not an heir or legatee. The information mailed or published under this Section must include an explanation, in form prescribed by rule of the Supreme Court of this State, of the rights of heirs and legatees to require formal proof of will under Sec. 5/6-21 and to contest the admission or denial of admission of the will to probate under Sec. 5/8-1 or 5/8-2. The petitioner or representative must file proof of mailing and publication, if publication is required, with the clerk of the court. Sec. 5/6-10(a).

Inventory

Within 60 days after the issuance of his letters the representative of the estate of a decedent or ward shall file in the court a verified inventory of the real and personal estate which has come to his knowledge and of any cause of action on which he has a right to sue. If any real or personal estate comes to the knowledge of the representative after he has filed an inventory he shall file a supplemental inventory thereof within 60 days after it comes to his knowledge. The inventory must describe the real estate and the improvements and encumbrances thereon, state the amount of money on hand and list all personal estate. Sec. 5/14-1.

Family Allowance and the Elective Share

The probate court may award a sum of money that the court deems reasonable for the proper support of the surviving spouse for the period of nine months after the death of the decedent in a manner suited to the condition in life of the surviving spouse and to the condition of the estate and an additional sum of money that the court deems reasonable for the proper support, during that period, of minor and adult dependent children of the decedent who reside with the surviving spouse at the time of decedent's death. The award may in no case be less than $20,000, together with an additional sum not less than $10,000 for each such child. Sec. 5/15-1.

If a will is renounced by the testator's surviving spouse, whether or not the will contains any provision for the benefit of the surviving spouse, the surviving spouse is entitled to the following share of the testator's estate after payment of all just claims: 1/3 of the entire estate if the testator leaves a descendant or 1/2 of the entire estate if the testator leaves no descendant. Sec. 5/2-8.

Debts and Distributions

It is the duty of the representative to publish once each week for 3 successive weeks, and to mail or deliver to each creditor of the decedent whose name and post office address are known to or are reasonably ascertainable by the representative and whose claim has not been allowed or disallowed, a notice stating the death of the decedent, the name and address of the representative and of his attorney of record, that claims may be filed on or before the date stated in the notice, which date shall be not less than 6 months from the date of the first publication or 3 months from the date of mailing or delivery, whichever is later, and that any claim not filed on or before that date is barred. The notice must be published in a newspaper in the county where the estate is being administered. Sec. 5/18-3.

Every claim filed must be in writing and state sufficient information to notify the representative of the nature of the claim or other relief sought. Sec. 5/18-2.

The representative of a decedent's estate shall pay from the estate all claims entitled to be paid, in the order of their classification, and when the estate is insufficient to pay the claims in any one class, the claims in that class shall be paid pro rata. Sec. 5/18-13. All claims against the estate of a decedent are classified in the following order:

  1. Funeral and burial expenses, expenses of administration, and statutory custodial claims. Interest on these amounts shall accrue beginning 60 days after issuance of letters of office to the representative of the decedent's estate, or if no such letters of office are issued, then beginning 60 days after those amounts are due, up to the rate of 9% per annum as allowed by contract or law.
  2. The surviving spouse's or child's award.
  3. Debts due the United States.
  4. Money due employees of the decedent of not more than $800 for each claimant for services rendered within 4 months prior to the decedent's death and reasonable expenses attending the last illness.
  5. Money and property received or held in trust by decedent which cannot be identified or traced.
  6. Debts due this State and any county, township, city, town, village or school district located within this State.
  7. All other claims. Sec. 5/18-10.

Estate/Inheritance Tax


Estates less than $4 million will pay no estate tax. Above that amount, the estate tax is a graduated tax with a top rate of 16% on estates in excess of $10.04 million. Sec. 405/2(b).

Income Tax Charitable Deductions and/or Credits


No deductions are allowed for charitable gifts.

Gift Annuity Requirements


Illinois, a "conditional exemption" state, regulates the issuance of charitable gift annuities under Illinois Compiled Statutes 215ILCS 5/121-2.10.

Exemption Qualifications

A charity qualifies for conditional exemption so long as it has been in continuous operation for 20 years and has an unrestricted fund balance of at least $2,000,000. The statute also provides that if a charity does not meet the above requirements, it will be exempt so long as it reinsures its gift annuities with an approved commercial insurance company. In order for a charity to fall under the conditional exemption, the gift annuity must meet the requirements of Sec. 501(m)(5) and the issuing charity must be an organization described in Sec. 170(c).

Disclosure Language

Illinois does not require specific disclosure language in an issuing charity's gift annuity contracts.

Reserve Requirements

Illinois does not require an issuing charity to hold any amount in reserve.

Annual Filing Requirements

No annual reporting is required.

State Forms

None
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