senate Bill S4090

Relates to the authority of the court to direct establishment accounts for the benefit of children in certain types of cases

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 17 / Mar / 2011
    • REFERRED TO CHILDREN AND FAMILIES
  • 04 / Apr / 2011
    • 1ST REPORT CAL.301
  • 05 / Apr / 2011
    • 2ND REPORT CAL.
  • 06 / Apr / 2011
    • ADVANCED TO THIRD READING
  • 11 / Apr / 2011
    • PASSED SENATE
  • 11 / Apr / 2011
    • DELIVERED TO ASSEMBLY
  • 11 / Apr / 2011
    • REFERRED TO JUDICIARY
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO CHILDREN AND FAMILIES
  • 05 / Mar / 2012
    • 1ST REPORT CAL.285
  • 06 / Mar / 2012
    • 2ND REPORT CAL.
  • 07 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 12 / Mar / 2012
    • PASSED SENATE
  • 12 / Mar / 2012
    • DELIVERED TO ASSEMBLY
  • 12 / Mar / 2012
    • REFERRED TO JUDICIARY

Summary

Relates to the authority of the court to direct establishment of a trust or other designated account for the benefit of children in matrimonial, child support and paternity cases.

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Bill Details

Versions:
S4090
Legislative Cycle:
2011-2012
Current Committee:
Assembly Judiciary
Law Section:
Domestic Relations Law
Laws Affected:
Amd §240, Dom Rel L; amd §413, Fam Ct Act

Sponsor Memo

BILL NUMBER:S4090

TITLE OF BILL:
An act
to amend the domestic relations law and the family court act, in
relation to the authority of the court to direct establishment of a
trust or other designated account for the benefit of children in
matrimonial, child support and paternity cases

This is one in a series of measures being introduced at the request of
the Chief Administrative Judge upon the recommendation of her Family
Court Advisory and Rules Committee.

The Child Support Standards Act provides helpful parameters for Family
and Supreme Courts to utilize to ensure that parents are assessed an
appropriate proportion of their incomes for the support of their
children, premised on the assumption that the incomes are relatively
constant. However, the Act provides no mechanism for courts to
address the not-infrequent situation where one parent receives an
economic windfall or exceptionally high income during a short period
of time, an income not likely to remain at that level in the future.
Examples include professional athletes or performers, individuals
who sell a successful business or those who win significant awards.
Without a means of preserving a portion of the windfall income for
children's future needs, courts are hampered in their ability to
provide just and appropriate child support orders that incorporate
future costs, such as college expenses. Accordingly, this measure
would authorize courts to direct that children be permitted to
benefit from such windfalls through establishment of designated
accounts, such as trust funds or annuities, that would provide them
with future streams of payments, thus ensuring adequate support even
after a non-custodial parent's income has decreased.

While explicitly not diminishing the non-custodial parent's basic
support obligation and in no way superseding the issuance of orders
for periodic payments
pursuant to the Child Support Standards Act, this measure would
authorize Supreme or Family Court, under such terms and conditions as
it deems appropriate, to direct a noncustodial parent to pay an
amount to establish a security account designated for the benefit of
the child, including, but not limited to, a trust account or annuity,
to meet the child's future needs. This measure would require the
Court to specify the parameters of the account, including, as
applicable, the particular purposes of the account; the person or
entity that will act as trustee, custodian or administrator of the
funds in the account; the person or entity that will act as the
trustee, custodian or administrator of the funds in the account in the
event of the death of the designated trustee, custodian or
administrator; the disposition of the funds after the emancipation or
death of the child or children named as beneficiaries; the particular
structure that will fulfill the purposes of the account; and any
further provisions necessary to accomplish the purpose of the account.

This measure, which would have no fiscal impact upon the State, would
take effect immediately.


2011 LEGISLATIVE HISTORY:
None. New proposal.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4090

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 17, 2011
                               ___________

Introduced by Sen. SAVINO -- (at request of the Office of Court Adminis-
  tration)  --  read  twice  and ordered printed, and when printed to be
  committed to the Committee on Children and Families

AN ACT to amend the domestic relations law and the family court act,  in
  relation  to  the  authority of the court to direct establishment of a
  trust or other designated account  for  the  benefit  of  children  in
  matrimonial, child support and paternity cases

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (c) of subdivision 1-b  of  section  240  of  the
domestic relations law is amended by adding a new subparagraph 8 to read
as follows:
  (8)  IN  ADDITION  TO THE BASIC CHILD SUPPORT OBLIGATION ORDERED UNDER
THIS SUBDIVISION, THE COURT MAY, IN ITS DISCRETION, ORDER THE RESPONDENT
TO PAY AN AMOUNT TO ESTABLISH A  SECURITY  ACCOUNT  DESIGNATED  FOR  THE
BENEFIT  OF THE CHILD, INCLUDING, BUT NOT LIMITED TO, A TRUST ACCOUNT OR
ANNUITY TO MEET THE CHILD'S FUTURE  NEEDS.  THE  COURT  MAY  DIRECT  THE
ESTABLISHMENT  OF  SUCH AN ACCOUNT UNDER SUCH TERMS AND CONDITIONS AS IT
DEEMS APPROPRIATE. THE COURT SHALL SET FORTH, AS APPLICABLE: THE SPECIF-
IC PURPOSES OF THE ACCOUNT; THE PERSON OR ENTITY THAT WILL ACT AS  TRUS-
TEE,  CUSTODIAN OR ADMINISTRATOR OF THE FUNDS IN THE ACCOUNT; THE PERSON
OR ENTITY THAT WILL ACT AS THE TRUSTEE, CUSTODIAN  OR  ADMINISTRATOR  OF
THE  FUNDS  IN  THE  ACCOUNT IN THE EVENT OF THE DEATH OF THE DESIGNATED
TRUSTEE, CUSTODIAN OR ADMINISTRATOR; THE DISPOSITION OF THE FUNDS  AFTER
THE  EMANCIPATION  OR  DEATH OF THE CHILD OR CHILDREN NAMED AS BENEFICI-
ARIES; THE PARTICULAR STRUCTURE THAT WILL FULFILL THE  PURPOSES  OF  THE
ACCOUNT;  AND ANY FURTHER PROVISIONS NECESSARY TO ACCOMPLISH THE PURPOSE
OF THE ACCOUNT. THE ESTABLISHMENT OF SUCH AN ACCOUNT SHALL NOT  DIMINISH
ANY CURRENT CHILD SUPPORT OBLIGATIONS.
  S 2. Paragraph (c) of subdivision 1 of section 413 of the family court
act is amended by adding a new subparagraph 8 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09515-01-1

S. 4090                             2

  (8)  IN  ADDITION  TO THE BASIC CHILD SUPPORT OBLIGATION ORDERED UNDER
THIS SUBDIVISION, THE COURT MAY, IN ITS DISCRETION, ORDER THE NON-CUSTO-
DIAL PARENT TO PAY AN AMOUNT TO ESTABLISH A SECURITY ACCOUNT  DESIGNATED
FOR  THE  BENEFIT  OF  THE CHILD, INCLUDING, BUT NOT LIMITED TO, A TRUST
ACCOUNT  OR  ANNUITY  TO  MEET  THE  CHILD'S FUTURE NEEDS. THE COURT MAY
DIRECT THE ESTABLISHMENT OF AN ACCOUNT UNDER SUCH TERMS  AND  CONDITIONS
AS  IT  DEEMS APPROPRIATE. THE COURT SHALL SET FORTH, AS APPLICABLE: THE
SPECIFIC PURPOSES OF THE ACCOUNT; THE PERSON OR ENTITY THAT WILL ACT  AS
TRUSTEE,  CUSTODIAN  OR  ADMINISTRATOR  OF THE FUNDS IN THE ACCOUNT; THE
PERSON OR ENTITY THAT WILL ACT AS THE TRUSTEE, CUSTODIAN OR  ADMINISTRA-
TOR  OF THE FUNDS IN THE ACCOUNT IN THE EVENT OF THE DEATH OF THE DESIG-
NATED TRUSTEE, CUSTODIAN OR ADMINISTRATOR; THE DISPOSITION OF THE  FUNDS
AFTER  THE EMANCIPATION OR DEATH OF THE CHILD OR CHILDREN NAMED AS BENE-
FICIARIES; THE PARTICULAR STRUCTURE THAT WILL FULFILL  THE  PURPOSES  OF
THE  ACCOUNT;  AND  ANY  FURTHER  PROVISIONS NECESSARY TO ACCOMPLISH THE
PURPOSE OF THE ACCOUNT. THE ESTABLISHMENT OF SUCH AN ACCOUNT  SHALL  NOT
DIMINISH ANY CURRENT CHILD SUPPORT OBLIGATIONS.
  S 3. This act shall take effect immediately.

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