Sec. 480.20 - Definitions

ยง 480.20. Definitions

a) "A Trustee" holds property when he has title or possession of the property and controls its distribution subject to conditions which devote the property to a charitable purpose. A custodian or depository does not hold property.

b) "A Charitable Remainder Trust" is one where the income goes to the donor or designated individual for life, with remainder to an operating charity on the death of the life tenant. The Trust must be irrevocable, as to the remainder, to fall within this regulation. Registration is required of all such trusts. A Charitable Remainder Trust may qualify for alteration of the reporting requirement pursuant to Section 480.60 of this Part and 14 Ill. Adm. Code 400.10 and 400.20.

c) "Charitable Purposes" includes without limitation any funds which are to be applied for the benefit of an indefinite number of people to provide them with:

1) Education,

2) The benefit of religion,

3) Relief from poverty, sickness or disease,

4) A means of establishing themselves in life,

5) Public building or recreational activities, or

6) Services which lessen the burden of government.

d) "Charitable Trusts" means any relationship whereby real or personal property is held for a charitable purpose or purposes.

e) "Trustee" is any person, group of persons or other legal entity who holds property intended to be used for charitable purposes.

f) "Trustees" who hold property for charitable purposes with a value exceeding $4,000, are required to register.

1) For the purposes of registration, the value of a trust's assets is fair market value.

2) Where the value of trust assets fluctuate, the value is determined by its greatest value during the year or the total amount disbursed, whichever is greater.

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Amended at 2 Ill. Reg. 37, p. 185, effective September 30, 1978

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