STARTING JANUARY 1, 2017, REAL PROPERTY IS TRANSFERRED INTO TRUST BY WRITTEN AND RECORDED CONVEYANCE OF LEGAL TITLE.
Public Act 009-609 amends section 6.5 of the Illinois Trusts and Trustees Act. The amendment will become effective January 1, 2017. The amendment requires that all transfers of real property to a trust must include a written conveyance of legal title and an acceptance by the trustee. Further, the amendment mandates that the trustee shall record the conveyance of the real estate to the trust with the county’s recorder’s office. 760 ILCS 5/6.5.
This amendment clarifies the confusion created by the holding in the Estate of Mendelson, where the Court on appeal found that the failure to create and record a deed did not negate the grantor’s stated intention to dispose of the home in accordance with the terms of the trust. 2015 IL (2d) 150084. The Court held that “a settlor who declares a trust naming herself as trustee is not required to separately and formally transfer the designated property into trust.” Id.
However, the amendment to section 5/6.5 sets forth the rules requiring a written and recorded conveyance of legal title for transfers of real property into trusts.
STARTING JANUARY 1, 2017, REAL PROPERTY IS TRANSFERRED INTO TRUST BY WRITTEN AND RECORDED CONVEYANCE OF LEGAL TITLE.
Public Act 009-609 amends section 6.5 of the Illinois Trusts and Trustees Act. The amendment will become effective January 1, 2017. The amendment requires that all transfers of real property to a trust must include a written conveyance of legal title and an acceptance by the trustee. Further, the amendment mandates that the trustee shall record the conveyance of the real estate to the trust with the county’s recorder’s office. 760 ILCS 5/6.5.
This amendment clarifies the confusion created by the holding in the Estate of Mendelson, where the Court on appeal found that the failure to create and record a deed did not negate the grantor’s stated intention to dispose of the home in accordance with the terms of the trust. 2015 IL (2d) 150084. The Court held that “a settlor who declares a trust naming herself as trustee is not required to separately and formally transfer the designated property into trust.” Id.
However, the amendment to section 5/6.5 sets forth the rules requiring a written and recorded conveyance of legal title for transfers of real property into trusts.