senate Bill S7144

Signed by Governor

Relates to renunciation of property interests

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Sponsor

Bill Status


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

  • 30 / Apr / 2014
    • REFERRED TO JUDICIARY
  • 06 / May / 2014
    • 1ST REPORT CAL.526
  • 07 / May / 2014
    • 2ND REPORT CAL.
  • 12 / May / 2014
    • ADVANCED TO THIRD READING
  • 29 / May / 2014
    • PASSED SENATE
  • 29 / May / 2014
    • DELIVERED TO ASSEMBLY
  • 29 / May / 2014
    • REFERRED TO JUDICIARY
  • 12 / Jun / 2014
    • SUBSTITUTED FOR A9355A
  • 12 / Jun / 2014
    • ORDERED TO THIRD READING CAL.633
  • 12 / Jun / 2014
    • PASSED ASSEMBLY
  • 12 / Jun / 2014
    • RETURNED TO SENATE
  • 01 / Aug / 2014
    • DELIVERED TO GOVERNOR
  • 11 / Aug / 2014
    • SIGNED CHAP.315

Summary

Relates to renunciation of property interests.

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Bill Details

See Assembly Version of this Bill:
A9355A
Versions:
S7144
Legislative Cycle:
2013-2014
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd ยง2-1.11, EPT L

Sponsor Memo

BILL NUMBER:S7144

TITLE OF BILL: An act to amend the estates, powers and trusts law, in
relation to renunciation of property interests

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.

EPTL 2-1.11(d)(5) authorizes the personal representative of a decedent
to renounce property to which the decedent became entitled but did not
receive before death, so long as the personal representative is
authorized to do so by the court having jurisdiction of the decedent's
estate. The most common situation in which a disclaimer by a personal
representative is useful involves spouses who have wills giving all to
the surviving spouse and, if the spouse does not survive, to the
couple's descendants. The result is no matter which spouse dies first
the same beneficiaries take the couples' property. If the spouses
both die within a short period of time the first estate must transfer
all of the property to the second estate so that the second estate can
make distribution of the property to the beneficiaries. Property in
the estate of the first to die, therefore, is subject to the expenses
of administration twice even though the beneficiaries of both estates
are ultimately the same (the problem is the same if the spouses die
intestate with respect to the surviving spouse's share in intestacy).
If the second spouse dies within nine months of the date of the death
of the first spouse, a renunciation by the personal representative of
the second to die's estate will keep the renounced property in the
estate of the first spouse to die allowing it to pass directly to the
beneficiaries without first having to pass through the estate of the
second spouse to die.

Because such a renunciation does not alter the identity of the
beneficiaries of either estate, requiring court authorization results
in unnecessary expense and delay, and delay can be fatal because of
the nine-month deadline for making a renunciation. The renunciation
will appear in the personal representative's accounting to the
beneficiaries of the estate of the second spouse to die and, under
EPTL 2-1.11(c)(2), notice must be given to the personal representative
of the estate of the first spouse to die (who will often be the same
as the personal representative of the estate of the second spouse to
die) and to the beneficiaries of the estate of the first spouse to die
whose interest in that estate will be increased.

Finally the amendment only removes the requirement of court approval.
A personal representative who desires to may still seek court approval
for a renunciation.

This measure, which would have no impact on the public treasury, would
take effect immediately and apply to the estates of decedents dying on
or after its effective date.

Legislative History:

None. New Proposal.


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

                                  7144

                            I N  S E N A T E

                             April 30, 2014
                               ___________

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  the  estates,  powers and trusts law, in relation to
  renunciation of property interests

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

  Section  1.  Subparagraph  5 of paragraph (d) of section 2-1.11 of the
estates, powers and trusts law, as amended by chapter 27 of the laws  of
2010, is amended to read as follows:
  (5) The personal representative of a decedent, [when so authorized by]
PROVIDED,  HOWEVER,  THAT  THE PERSONAL REPRESENTATIVE MAY SEEK AUTHORI-
ZATION FROM the court having jurisdiction of the estate of the decedent.
  S 2. This act shall take effect immediately and  shall  apply  to  the
estates of decedents dying on or after its effective date.







 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13641-02-4

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