HB 4436 Illinois House · 104th Regular Session

TRUST CD-VIRTUOUS TRUSTS

Summary
Amends the Illinois Trust Code. Allows a virtuous trust to be created for a business or other noncharitable purpose without a definite or definitely ascertainable beneficiary. Requires a virtuous trust to be created by a written instrument. Allows a virtuous trust to hold an ownership interest of any corporation, partnership, limited partnership, cooperative, limited liability company, limited liability partnership, or joint venture. Provides that a trustee of a virtuous trust or a virtuous trust shall not be deemed to violate the trustee's duties by virtue of the trustee investing and managing the trust's assets pursuant to the terms and the purposes of the trust. Exempts a virtuous trust from the common law rule against perpetuities. Allows a virtuous trust to be enforced by one or more trust enforcers appointed in the trust instruction, and allows a virtuous trust instrument to provide for appointing successor trust enforcers. Requires a virtuous trust to have a trust purpose committee with at least 3 persons as members. Includes provisions related to the trust purpose committee, including appointment procedures, voting procedures, powers of the committee, resignation procedures, and reporting requirements. Provides that property of a virtuous trust may be applied only to its intended use. Allows the trust purpose committee and the trust enforcers to modify or terminate a virtuous trust by unanimous agreement. Prohibits a person serving as a trustee from serving as a trust enforcer or as a member of the trust purpose committee. Makes conforming changes.
Bill status passed 3 of 5 stages cleared
Introduction
Apr 2026
Committee Review
Apr 2026
House Passage
Apr 2026
Senate Passage
Governor
Introduced Apr 15, 2026 Last action Apr 28, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Engrossed · 5 edits · Apr 14, 2026
MODERATE
The bill introduces a new 'virtuous trust' framework allowing trusts to be created for business or noncharitable purposes without a specific beneficiary, exempting them from the rule against perpetuities. It establishes new governance requirements, including a mandatory three-person trust purpose committee and a prohibition on trustees serving as enforcers or committee members. The text also adds several new legal definitions related to powers of appointment and guardianship.
Scope change
The bill expands the scope of the Illinois Trust Code to include noncharitable purposes and introduces a new category of 'virtuous trusts' that operate differently from traditional charitable trusts.
SCOPE

Created a new 'virtuous trust' category that can exist for business or noncharitable purposes without a definite beneficiary.

REQUIREMENT

Mandated the creation of a trust purpose committee with at least three members to oversee the trust.

Prohibited any person from serving simultaneously as a trustee, a trust enforcer, and a member of the trust purpose committee.

DEFINITION

Added new definitions for terms including 'virtuous trust', 'trust purpose committee', 'trust enforcer', 'environmental law', and various guardianship terms.

ENFORCEMENT

Established a mechanism for trust enforcers to be appointed to oversee and enforce the trust's purposes.

Floor votes · House Apr 14, 2026

How they voted

1060
Passed · 10 other
Total votes 116
Apr 14, 2026
D Democratic76
69 Yea 7
90% Yea
R Republican40
37 Yea 3
92% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
14
Key actions
2
Committee
4
Apr 28, 2026
Committee
Referred to Assignments
upper
Apr 15, 2026
Introduced
Arrive in Senate
upper
Apr 14, 2026
Lower · Passed
Third Reading - Short Debate - Passed 108-000-000
lower
Mar 25, 2026
Lower · Passed
Do Pass / Short Debate Judiciary - Civil Committee; 018-000-000
lower
Mar 4, 2026
Committee
Assigned to Judiciary - Civil Committee
lower
Jan 20, 2026
Committee
Referred to Rules Committee
lower
2 primary · 0 co-sponsors

Sponsors