senate Bill S7244

Makes technical correction relating to exercise of 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

  • 07 / May / 2014
    • REFERRED TO JUDICIARY
  • 13 / May / 2014
    • 1ST REPORT CAL.668
  • 14 / May / 2014
    • 2ND REPORT CAL.
  • 19 / May / 2014
    • ADVANCED TO THIRD READING
  • 10 / Jun / 2014
    • SUBSTITUTED BY A9757

Summary

Makes a technical correction relating to exercise of 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:
A9757
Versions:
S7244
Legislative Cycle:
2013-2014
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd §10-6.6, EPT L

Sponsor Memo

BILL NUMBER:S7244

TITLE OF BILL: An act to amend the estates, powers and trusts law, in
relation to the exercise of a power of appointment and an authorized
trustee's authority to invade trust principal

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 cross-referenced section in section
10-6.6(s)(10) of the EPTL, as added by chapter 482 of the Laws of 2013
- which chapter made technical corrections to New York's so-called
"decanting statute", 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. The addition of section 106.6(s)(10) made clear that, under the
statute, a creator of the trust shall not be considered a beneficiary
by reason of the trustee's authority to do certain acts regarding
trust principal.

Section 10-6.6(s)(10) now reads as follows:

"§4. (10) The creator shall not be considered to be a beneficiary of
an invaded or appointed trust by reason of the trustee's authority to
pay trust principal to the creator pursuant to section 7-1.1 of this
chapter or by reason of the trustee's authority under the trust
instrument or any other provision of law to pay or reimburse the
creator for any tax on trust income or trust principal that is payable
by the creator under the law imposing such tax or to pay any such tax
directly to the taxing authorities." (emphasis added.)

The underscored cross-reference, however, is incorrect. Instead of
section 7-1.1, the statute should reference section 7-1.11. This
measure would make the appropriate correction.

This measure, which would have no fiscal impact, would take effect
immediately and shall be deemed to have been in full force and effect
on and after November 13, 2013.

Legislative History: None. New proposal.

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

                                  7244

                            I N  S E N A T E

                               May 7, 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 the
  exercise of a power of appointment and an authorized trustee's author-
  ity to invade trust principal

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

  Section  1.  Subparagraph 10 of paragraph (s) of section 10-6.6 of the
estates, powers and trusts law, as added by chapter 482 of the  laws  of
2013, is amended to read as follows:
  (10)  The  creator  shall  not be considered to be a beneficiary of an
invaded or appointed trust by reason of the trustee's authority  to  pay
trust  principal  to  the  creator pursuant to section [7-1.1] 7-1.11 of
this chapter or by reason of the trustee's  authority  under  the  trust
instrument or any other provision of law to pay or reimburse the creator
for  any  tax  on trust income or trust principal that is payable by the
creator under the law imposing such tax or to pay any such tax  directly
to the taxing authorities.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after November 13, 2013.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14936-01-4

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