|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 08, 2014||referred to judiciary|
|Jan 09, 2013||referred to judiciary|
senate Bill S2014
Archive: Last Bill Status -
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S2014 - Details
- Law Section:
- Estates, Powers and Trusts Law
- Laws Affected:
- Add §11-2.2-a, EPT L
- Versions Introduced in 2011-2012 Legislative Session:
S2014 - Sponsor Memo
BILL NUMBER:S2014 TITLE OF BILL: An act to amend the estates, powers and trusts law, in relation to the role and duties of advisors in trust agreements PURPOSE: This bill creates authority for grantors to establish directed trusteeships under which fiduciaries would act under the advice or direction of an advisor or protector who could direct, consent to or disapprove the fiduciaries' decisions with regard to investments, distributions or other matters. SUMMARY OF PROVISIONS: Section 1: Amends the Estates, Powers and Trusts Law by adding a new section 11-2.2-a to make clear that grantors may establish directed trusteeships, clarifies the responsibilities of fiduciaries who follow the advice or direction of an advisor or protector, and specifies the duties of the fiduciary in relation to advisors and protectors. Also, it states that advisors accept the jurisdiction of New York courts when accepting appointment. It also sets the same standard of reasonable compensation for an advisor as exists for other fiduciaries. Finally, it clarifies that the term "advisor" includes "protectors," and specifies some, but not all, of the powers of advisors; and clarifies the term "investment decision." Section 2: Effective date.
S2014 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2014 2013-2014 Regular Sessions I N S E N A T E (PREFILED) January 9, 2013 ___________ Introduced by Sen. BONACIC -- 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 role and duties of advisors in trust agreements THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The estates, powers and trusts law is amended by adding a new section 11-2.2-a to read as follows: S 11-2.2-A ADVISORS (A) ADVISORS. (1) WHERE ONE OR MORE PERSONS ARE GIVEN AUTHORITY BY THE TERMS OF A GOVERNING INSTRUMENT TO DIRECT, CONSENT TO OR DISAPPROVE A FIDUCIARY'S ACTUAL OR PROPOSED INVESTMENT DECISIONS, DISTRIBUTION DECISIONS OR OTHER DECISION OF THE FIDUCIARY, SUCH PERSONS SHALL BE CONSIDERED TO BE ADVI- SORS AND FIDUCIARIES WHEN EXERCISING SUCH AUTHORITY UNLESS THE GOVERNING INSTRUMENT OTHERWISE PROVIDES. (2) IF A GOVERNING INSTRUMENT PROVIDES THAT A FIDUCIARY IS TO FOLLOW THE DIRECTION OF AN ADVISOR, AND THE FIDUCIARY ACTS IN ACCORDANCE WITH SUCH A DIRECTION, THEN EXCEPT IN CASES OF WILLFUL MISCONDUCT ON THE PART OF THE FIDUCIARY SO DIRECTED, THE FIDUCIARY SHALL NOT BE LIABLE FOR ANY LOSS RESULTING DIRECTLY OR INDIRECTLY FROM ANY SUCH ACT. (3) IF A GOVERNING INSTRUMENT PROVIDES THAT A FIDUCIARY IS TO MAKE DECISIONS WITH THE CONSENT OF AN ADVISOR, THEN EXCEPT IN CASES OF WILL- FUL MISCONDUCT OR GROSS NEGLIGENCE ON THE PART OF THE FIDUCIARY, THE FIDUCIARY SHALL NOT BE LIABLE FOR ANY LOSS RESULTING DIRECTLY OR INDI- RECTLY FROM ANY ACT TAKEN OR OMITTED AS A RESULT OF SUCH ADVISOR'S FAIL- URE TO PROVIDE SUCH CONSENT AFTER HAVING BEEN REQUESTED TO DO SO BY THE FIDUCIARY. (4) WHENEVER A GOVERNING INSTRUMENT PROVIDES THAT A FIDUCIARY IS TO FOLLOW THE DIRECTION OF AN ADVISOR WITH RESPECT TO INVESTMENT DECISIONS, EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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