senate Bill S4584

Signed By Governor
2011-2012 Legislative Session

Provides that the term "disposition" shall include succession to an interest occurring by operation of law by death of a joint tenant or tenant by the entirety

download bill text pdf

Sponsored By

Archive: Last Bill Status Via A6837 - Signed by Governor


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

do you support this bill?

Actions

view actions (11)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 03, 2011 signed chap.285
Jul 22, 2011 delivered to governor
Jun 02, 2011 returned to assembly
passed senate
3rd reading cal.742
substituted for s4584
Jun 02, 2011 substituted by a6837
May 23, 2011 advanced to third reading
May 18, 2011 2nd report cal.
May 17, 2011 1st report cal.742
Apr 13, 2011 referred to judiciary

Votes

view votes

S4584 - Bill Details

See Assembly Version of this Bill:
A6837
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd §2-1.11, EPT L

S4584 - Bill Texts

view summary

Provides that the term "disposition" shall include succession to an interest occurring by operation of law by death of a joint tenant or tenant by the entirety.

view sponsor memo
BILL NUMBER:S4584

TITLE OF BILL:

An act
to amend the estates, powers and trusts law, in relation to the
renunciation of interests in jointly held property

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 clarify the application of section 2-1.11 of the
EPTL, the renunciation statute, to renunciations by joint tenants and
tenants by the entirety.

The amendment of EPTL 2-1.11 by chapter 27 of the Laws of 2010, among
other changes, modified the list in subsection (b)(1) of
dispositions which may be renounced by replacing the reference to "a
transfer created by a joint tenancy or a tenancy by the entirety"
with language referring to two different transfers: "a transfer
resulting from the creation of a joint tenancy or tenancy by the
entirety," and "a transfer created by the death of a joint tenant
or tenant by the entirety."

The new language accurately draws a distinction between the transfer
that occurs on the creation of a joint tenancy or tenancy by the
entirety and the succession to the deceased joint tenant's or tenant
by the entirety's interest by the survivor. The regulations to
Internal Revenue Code §2518 dealing with tax qualified disclaimers
draw the same distinction. Section 25.2518-2(c)(4) requires a
qualified disclaimer "of the interest to which the disclaimant
succeeds upon creation of the tenancy" be made within nine months of
creation. A tax qualified disclaimer "of the survivorship interest to
which the survivor succeeds by operation of law upon the death of the
first joint tenant to die" must be made within nine months of the
death under the same regulation.

The 2010 amendment to section 2-111(b)(1) therefore does make clear
that a renunciation can be made when the joint tenancy is created or
at the death of a joint tenant. However, the reference to two
"transfers" is confusing and might lead to the conclusion that the
two transfers are the same transfer which in turn would lead to the
conclusion that the disclaimer of the "transfer" occurring on the
death of a joint tenant must be made within nine months of the
creation of the joint tenancy.

The proposed amendment clarifies the distinction between the two
dispositions involved in joint tenancies and tenancies by the
entirety-one at creation of the tenancy and one at the death of one
of the tenants-by using the word "succession" to describe the second
disposition. This language is consistent with the language used in
the gift tax regulation cited above as well as in EPTL 2-1.11(c)(1)
which, as amended in 2010, authorizes a surviving joint tenant or
tenant by the entirety to renounce "the interest to which such tenant


succeeds, by operation of law upon the death of another joint tenant
or tenant by the entirety...."

This measure would have no fiscal impact on the State. It would take
effect immediately and shall apply to estates of decedents dying 011
or after such date.

LEGISLATIVE HISTORY:

None. New proposal.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4584

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 13, 2011
                               ___________

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
  renunciation of interests in jointly held property

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

  Section  1.  Subparagraph  1 of paragraph (b) 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:
  (1) The term "disposition" shall include a disposition created under a
will or trust agreement including, without limitation, the granting of a
power  of appointment, a disposition created by the exercise or nonexer-
cise of a power of appointment, a  distributive  share  under  4-1.1,  a
transfer  created  by  a  trust  account as defined in 7-5.1, a transfer
created by a life insurance or annuity contract,  a  transfer  resulting
from  the  creation  of  a  joint tenancy or tenancy by the entirety, [a
transfer created by] SUCCESSION TO AN INTEREST OCCURRING BY OPERATION OF
LAW ON the death of a joint tenant or tenant by the entirety, a transfer
under an employee  benefit  plan  (including,  without  limitation,  any
pension,  retirement, death benefit, stock bonus or profit-sharing plan,
system or trust), a transfer of a security to a beneficiary pursuant  to
part  4 of article 13 of this chapter, any other disposition or transfer
created by any testamentary or nontestamentary instrument, or by  opera-
tion  of law, and any of the foregoing created or increased by reason of
a renunciation made by another person.
  S 2. This act shall take effect immediately and shall apply to estates
of decedents dying on or after such date.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09884-01-1

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.