senate Bill S3789

Relates to the effectiveness of the exercise of a power of appointment and an authorized trustee's authority to invade trust principal

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Bill Status


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

  • 15 / Feb / 2013
    • REFERRED TO JUDICIARY
  • 16 / Apr / 2013
    • 1ST REPORT CAL.300
  • 17 / Apr / 2013
    • 2ND REPORT CAL.
  • 22 / Apr / 2013
    • ADVANCED TO THIRD READING
  • 01 / May / 2013
    • SUBSTITUTED BY A4061

Summary

Relates to the effectiveness of exercise of a power of appointment and an authorized trustee's authority to invade trust principal.

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Bill Details

See Assembly Version of this Bill:
A4061
Versions:
S3789
Legislative Cycle:
2013-2014
Law Section:
Estates, Powers and Trusts
Laws Affected:
Amd ยง3, Chap 451 of 2011
Versions Introduced in Previous Legislative Cycles:
2013-2014: A4061
2011-2012: S7630, S7630

Sponsor Memo

BILL NUMBER:S3789

TITLE OF BILL: An act to amend chapter 451 of the laws of 2011,
amending the estates, powers and trusts law relating to the exercise
of a power of appointment and an authorized trustee's authority to
invade trust principal, in relation to the effectiveness thereof

This is one in a series of measures being introduced at the request of
the Chief Administrative Judge upon the recommendation of her
Surrogate's Court Advisory Committee. This measure would make one
technical correction to the effective date of chapter 451 of the Laws
of 2011, which substantially altered New York's so-called "decanting
statute" - EPTL 10-6.6, enacted in 1992. Section 10-6.6(b) codifies
decisional law that permitted a trustee who has authority to invade
the trust principal to exercise that power by creating new trusts.
This effectively allows the rewriting of an irrevocable trust by
permitting trust assets to be "appointed" or "decanted" to another
trust. Chapter 451 enacted provisions to make the statute more
flexible and more explicit with respect to the procedure required to
effect a decanting.

The effective date provisions of L.2011, c. 451 are as fellows:

"This act shall take effect immediately and shall apply to trusts
whether created prior to or after such effective date. "(emphasis
added.)

The effective date of the new statute was August 17, 2011 and the
question has arisen whether the statute applies to a trust created on
that date. To clarify this issue it is proposed that there be a
chapter amendment to L. 2011, c. 451 enacting the following effective
date provisions:

This act shall take effect immediately and shall apply to trusts
whether created prior to, on, or after such effective date.

Legislative History: None. New proposal.

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

                                  3789

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 15, 2013
                               ___________

Introduced  by Sen. BONACIC -- (at request of the Office of Court Admin-
  istration) -- read twice and ordered printed, and when printed  to  be
  committed to the Committee on Judiciary

AN  ACT  to amend chapter 451 of the laws of 2011, amending the estates,
  powers and trusts law relating to the exercise of a power of  appoint-
  ment  and an authorized trustee's authority to invade trust principal,
  in relation to the effectiveness thereof

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

  Section  1.  Section 3 of chapter 451 of the laws of 2011 amending the
estates, powers and trusts law relating to the exercise of  a  power  of
appointment  and an authorized trustee's authority to invade trust prin-
cipal is amended to read as follows:
  S 3. This act shall take effect immediately and shall apply to  trusts
whether created prior to, ON, or after such effective date.
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03052-01-3

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