senate Bill S6657

Signed By Governor
2011-2012 Legislative Session

Includes marketable securities within the list of items considered family benefit exemptions

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Archive: Last Bill Status Via A8344 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jul 18, 2012 signed chap.123
Jul 06, 2012 delivered to governor
Jun 05, 2012 returned to assembly
passed senate
3rd reading cal.789
substituted for s6657
Jun 05, 2012 substituted by a8344a
May 21, 2012 advanced to third reading
May 16, 2012 2nd report cal.
May 15, 2012 1st report cal.789
Mar 08, 2012 referred to judiciary

Votes

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S6657 - Bill Details

See Assembly Version of this Bill:
A8344A
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd ยง5-3.1, EPT L

S6657 - Bill Texts

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Includes marketable securities within the list of items considered family benefit exemptions and not included as assets of the estate.

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BILL NUMBER:S6657

TITLE OF BILL:
An act
to amend the estates, powers and trusts law, in relation to exemptions
for the benefit of the family

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.

Section 5-3.1 of the Estates, Powers and Trusts Law provides that,
where a person dies leaving a surviving spouse or children under 21,
certain property belonging to such decedent must be exempted from his
or her estate assets and, instead, vest in and be set off to the
surviving spouse or, if there be none, to his or her children under
21. This exempted property includes money up to $25,000 (subject to
certain limitations). This statute was recently updated and
modernized for the first time since 1992. L. 2010, c.437. Chapter 437
amended section 5-3.1 by expanding some of the articles of personal
property to be exempted, deleting some of the items that were
previously exempted and increasing the value of all of the items
referenced therein.

However, since enactment, a question has been raised regarding the
type of assets that may be used in computing the $25,000 set off in
paragraph six. When the changes to this paragraph were made, the
phrase "or other personal property" was eliminated and language to
include cash and cash equivalents was added. The purpose of the
revision was to give the surviving spouse or children the means to
pay their immediate expenses during the settlement of the estate. The
sponsor's memorandum clearly stated that:
"Liquid assets, rather than personal property, is the intent of this
subsection." However, the eliminated term "or other personal
property" was construed to include shares of stock owned by the
decedent. To clarify that stock is still included in the class of
assets
comprising paragraph six, this measure adds the language "marketable
securities" to the other assets listed in this section. It also
proposes a simple clarifying technical amendment to paragraph (b).

This measure would take effect immediately, but shall be deemed to
have been in full force on and after January 1, 2011.

2011 LEGISLATIVE HISTORY:
OCA 2011-54
Assembly 8344 (M. of A. Weinstein) [Passed]

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

                                  6657

                            I N  S E N A T E

                              March 8, 2012
                               ___________

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
  exemptions for the benefit of the family

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

  Section  1.  Subparagraph  6  of paragraph (a) of section 5-3.1 of the
estates, powers and trusts law, as amended by chapter 437 of the laws of
2010, is amended to read as follows:
  (6) Money including but not limited to  cash,  checking,  savings  and
money  market  accounts, certificates of deposit or equivalents thereof,
AND MARKETABLE SECURITIES, not exceeding in value  twenty-five  thousand
dollars, reduced by the excess value, if any, of acquired items referred
to  in  subparagraphs  (1), (2), (3) and (5) of this paragraph. However,
where assets are insufficient to pay the reasonable funeral expenses  of
the decedent, the personal representative must first apply such money to
defray any deficiency in such expenses.
  S  2. Paragraph (b) of section 5-3.1 of the estates, powers and trusts
law, as amended by chapter 595 of the laws of 1992, is amended  to  read
as follows:
  (b) No allowance shall be made in money or other property if the items
of  property  described  in  subparagraph  (1), (2), (3) or [(4)] (5) OF
PARAGRAPH (A) are not in existence when the decedent dies.
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after January 1, 2011.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13070-04-2

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