***The most recent update***
The Illinois Trust Code finalized the rule about transferring property to trusts:
Transfer of real property to trust. The transfer of real property to a trust requires a transfer of legal title to the trustee evidenced by a written instrument of conveyance.
Update to First Post (Below).
The bill was signed into law by Governor Rauner and becomes effective on January 1, 2017. BUT… questions, of course, are still unanswered, such as what is an “interest” in property for the purpose of this law. Well, we will continue to muddle through…
In October of 2015, we reported about a case that caused a slight sensation in the Illinois estate planning, title, and probate communities by providing that property need not be titled to a trust in order to be considered part of the trust estate.
In response to the quiet uproar, on appeal, the court retraced some of the steps, but still left the issue about whether property needs to be titled to a trust in a questionable state. So, 2 Illinois legislators came to the rescue and introduced a bill in February 2016 requiring a title transfer to a trust and that the transfer be made via a written instrument, e.g., a deed to the trust.
The measure, SB 2842, has passed both legislative chambers and is waiting for the Governor’s signature. So stay tuned…