760 ILCS 15/1
Short Title
Short Title. This Act may be cited as the Principal and Income Act. (Source: P.A. 86-1475.)
Illinois Compiled Statutes 760 ILCS 15 — Principal and Income Act.
Illinois · statute · 760 ILCS 15 · 17 active provisions
760 ILCS 15/2
Definitions
Definitions. As used in this Act: (a) "income beneficiary" means the person to whom income is presently payable or for whom it is accumulated for distribution as income; (b) "inventory value" means the cost of property purchased by the trustee and the market value of other property at the time it became subject to the…
760 ILCS 15/3
Scope of Act; rules of administration
Scope of Act; rules of administration. (a) This Act governs the ascertainment of income and principal and the apportionment of receipts and expenses in all cases where a trust is established unless otherwise stated hereinafter, to the extent not inconsistent with the provisions of the instrument. A person establishing…
760 ILCS 15/4
Income and Principal Defined
Income and Principal Defined. (a) Income is the return in money or property derived from the use of principal, including return received as: (1) rent of real or personal property, including sums received for cancellation or renewal of a lease; (2) interest received, including sums received as consideration for the priv…
760 ILCS 15/5
When right to income commences and terminates
When right to income commences and terminates. (a) An income beneficiary is entitled to income from the date or event specified in the instrument, or, if none is specified, from the date an asset becomes subject to the trust. In the case of an asset becoming subject to the trust by reason of a will, it becomes subject…
760 ILCS 15/6
Administration of a decedent's estate
Administration of a decedent's estate. (a) Subject to subsection (b), all expenses incurred in connection with the settlement of a decedent's estate, including debts, funeral expenses, estate taxes, family allowances, fees of attorneys and representatives, and court costs shall be charged against the principal of the e…
760 ILCS 15/7
Corporate Distributions
Corporate Distributions. (a) Corporate distributions of shares of the distributing corporation, including distributions in the form of a stock split or stock dividend, are principal. A right to subscribe to shares or other securities issued by the distributing corporation accruing on account of the ownership of shares…
760 ILCS 15/8
Premium and discount
Premium and discount. (a) A bond or other obligation for the payment of money is principal at its inventory value. No provision shall be made for amortization of premiums or for accumulation for discounts. Except as provided in subsection (b), the proceeds of sale, redemption or other disposition of the bond or other o…
760 ILCS 15/9
Business and farming operations
Business and farming operations. (a) If a trustee uses any part of the principal in the operation of a business or, except as provided in subsection (b), an agricultural or farming operation, including the raising of animals or the operation of a nursery, the net profits and losses shall be computed in accordance with…
760 ILCS 15/10
Disposition of natural resources
Disposition of natural resources. (a) If any part of the principal consists of a right to receive royalties, overriding or limited royalties, working interests, production payments, net profit interests, or other interest in minerals, oil, gas or other natural resources in, on or under land, except timber, water, soil,…
760 ILCS 15/12
Other property subject to depletion
Other property subject to depletion. Except as provided in Section 10, if the principal consists of property subject to depletion, including leaseholds, patents, copyrights, trademarks, and royalty rights, the receipts therefrom shall be allocated to principal. (Source: P.A. 82-390; 87-714.)
760 ILCS 15/12.1
Employment related periodic payments
Employment related periodic payments. (a) Except as provided in subsection (b), if any part of the principal consists of the right to receive periodic payments under an employment related contract or plan or an individual retirement account or annuity, the receipts therefrom shall be allocated to principal. (b) The rec…
760 ILCS 15/13
Nonapportionment of proceeds
Nonapportionment of proceeds. Except to the extent provided in Section 8 and Section 10, no portion of the net proceeds of the sale or other disposition of property (whether nonproductive, underproductive, or productive) shall be allocated to income. (Source: P.A. 87-714.)
760 ILCS 15/14
Charges against income and principal
Charges against income and principal. (a) The following charges shall be made against income: (1) ordinary expenses, other than compensation as provided in paragraph (6) of this subsection (a), incurred by the trustee in connection with the administration or protection of the trust property, including regularly recurri…
760 ILCS 15/15
Non-trust estates
Non-trust estates. (a) The provisions of this Act, as far as applicable, shall apply to nontrust estates subject to any agreement of the parties or any specific direction by statute or otherwise, and the references to trusts and trustees shall be read as applying to nontrust estates and to legal tenants (including life…
760 ILCS 15/16
Application of Act
Application of Act. Except as specifically provided in the governing instrument or in this Act, this Act shall apply to any receipt or expense received or incurred on or after the effective date of this Act by any trust, decedent's estate or legal life estate whether established on, before or after the effective date o…
760 ILCS 15/17
This Act takes effect January 1, 1982
This Act takes effect January 1, 1982. (Source: P.A. 82-390.)