senate Bill S7077A

Signed By Governor
2013-2014 Legislative Session

Relates to powers of attorney in relation to decedents' estates required to be in writing and recorded

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Archive: Last Bill Status - 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
Sep 23, 2014 signed chap.391
Sep 11, 2014 delivered to governor
Jun 09, 2014 returned to senate
passed assembly
ordered to third reading cal.881
substituted for a9759
May 20, 2014 referred to judiciary
delivered to assembly
passed senate
May 05, 2014 advanced to third reading
amended 7077a
Apr 30, 2014 2nd report cal.
Apr 29, 2014 1st report cal.426
Apr 23, 2014 referred to judiciary

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S7077 - Bill Details

See Assembly Version of this Bill:
A9759
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd §13-2.3, EPT L

S7077 - Bill Texts

view summary

Relates to powers of attorney in relation to decedents' estates required to be in writing and recorded.

view sponsor memo
BILL NUMBER:S7077

TITLE OF BILL: An act to amend the estates, powers and trusts law, in
relation to powers of attorney in relation to decedents' estates
required to be in writing and recorded

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.

We recommend this measure to clarify the law with regard to the filing
of an agreement with the Surrogate's Court by an abandoned property
services locator under SCPA 1310 and a rule requirement adopted by the
Office of Unclaimed Funds of the New York Office of the State
Comptroller ("OSC"). The measure would eliminate the current practice
whereby any "finder's agreement" that has been executed by a potential
claimant to such unclaimed funds must be filed with the Surrogate's
Court when no estate has been opened and no fiduciary has been
appointed for the estate.

Currently, a claimant who is not a fiduciary may enter into an
agreement with an abandoned property services locator or other similar
agent to pay the agent up to 15% of the unclaimed funds recovered. A
claimant who has not been appointed as a fiduciary is not authorized
to represent the estate. The agreement is simply a contract between
two individuals, neither of whom has the authority to represent the
estate. Operationally, the Office of Unclaimed Funds requires the
party making the claim to provide a court certified copy of the
property location agreement filed with the Surrogate's Court when a
decedent's estate representative or qualifying heir pursuant to
section 1310 of the Surrogate's Court Procedure Act is making claim to
abandoned funds. However, we believe that the statute does not require
that such agreements be filed with the court when the agreement is
signed by a person claiming the property as a qualified affiant
pursuant to section 1310 of the Surrogate's Court Procedure Act. In
practice such agreements are filed in bulk by the property locator's
agent, in a county of its choice, without a companion estate
proceeding. The absence of an estate proceeding renders such filings
meaningless from an oversight perspective and is unnecessary pursuant
to statute. In the opinion of our Advisory Committee, with limited
exceptions, property locator agreements concerning assets of a
decedent should be executed only by fiduciaries and thereafter filed
in the Surrogate's Court which issued such letters, so that all
interests of the rightful heirs of a decedent and creditors of an
estate are protected.

Administratively, the Office of Unclaimed Funds in the OSC has
determined it will no longer accept an abandoned property location
services agreement where letters have not been issued to an estate
representative, unless it is executed by the spouse or children of a
decedent and the amount at issue is less than $1,000. Further, where,
excepting those cases where a locator's agreement is signed by the
spouse or children of a decedent, all other claimants would be
required to obtain letters pursuant to Article 13 of the SCPA for
claims in excess of $1,000. The process can be completed on line,
costs one dollar for a certificate, and more adequately ensures that


all distributees, beneficiaries and creditors are protected. The OSC
has proposed and expects to adopt regulatory changes to this effect.

This measure would enact the necessary statutory amendments to ensure
that these agreements are not accepted for filing by the Surrogate's
Court unless a fiduciary has been appointed or is pending before the
court.

This measure, which would have no meaningful impact on the public
treasury, would take effect immediately.

Legislative History:

None. New Proposal.

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

                                  7077

                            I N  S E N A T E

                             April 23, 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
  powers of attorney in relation to decedents' estates required to be in
  writing and recorded

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

  Section  1.  Section  13-2.3  of the estates, powers and trusts law is
amended by adding a new paragraph (e) to read as follows:
  (E) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER STATUTE  OR  RULE,  NO
INSTRUMENT  CONTAINING  A  DELEGATION OF POWERS, ASSIGNMENT OF INTEREST,
FEE ARRANGEMENT, OR ANY  INSTRUMENT  OF  LIKE  IMPORT  CREATED  FOR  THE
PURPOSE  OF  PARTICIPATING ON BEHALF OF AN INDIVIDUAL IN ANY APPLICATION
SEEKING THE RECOVERY OF PROPERTY PURSUANT TO  SECTION  FOURTEEN  HUNDRED
TEN OF THE ABANDONED PROPERTY LAW OR SECTION THIRTEEN HUNDRED TEN OF THE
SURROGATE'S  COURT  PROCEDURE  ACT,  NOR ANY POWER OF ATTORNEY, SHALL BE
ACCEPTED FOR FILING OR RECORDING BY THE SURROGATE'S COURT OF  A  PARTIC-
ULAR  COUNTY  UNLESS A FIDUCIARY, AS THAT TERM IS DEFINED BY SUBDIVISION
TWENTY-ONE OF SECTION ONE HUNDRED THREE OF THE SURROGATE'S COURT  PROCE-
DURE  ACT,  HAS BEEN APPOINTED, OR A PROCEEDING FOR THE APPOINTMENT OF A
FIDUCIARY IS PENDING IN SUCH COURT. THE PROVISIONS OF PARAGRAPH  (B)  OF
THIS  SECTION  SHALL  APPLY  TO  ALL INSTRUMENTS ELIGIBLE FOR FILING AND
RECORDING HEREUNDER.
  S 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13631-01-4

S7077A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9759
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd §13-2.3, EPT L

S7077A (ACTIVE) - Bill Texts

view summary

Relates to powers of attorney in relation to decedents' estates required to be in writing and recorded.

view sponsor memo
BILL NUMBER:S7077A

TITLE OF BILL: An act to amend the estates, powers and trusts law, in
relation to powers of attorney in relation to decedents' estates
required to be in writing and recorded

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.

We recommend this measure to clarify the law with regard to the filing
of an agreement with the Surrogate's Court by an abandoned property
services locator under SCPA 1310 and a rule requirement adopted by the
Office of Unclaimed Funds of the New York Office of the State
Comptroller ("OSC"). The measure would eliminate the current practice
whereby any "finder's agreement" that has been executed by a potential
claimant to such unclaimed funds must be filed with the Surrogate's
Court when no estate has been opened and no fiduciary has been
appointed for the estate.

Currently, a claimant who is not a fiduciary may enter into an
agreement with an abandoned property services locator or other similar
agent to pay the agent up to 15% of the unclaimed funds recovered. A
claimant who has not been appointed as a fiduciary is not authorized
to represent the estate. The agreement is simply a contract between
two individuals, neither of whom has the authority to represent the
estate. Operationally, the Office of Unclaimed Funds requires the
party making the claim to provide a court certified copy of the
property location agreement filed with the Surrogate's Court when a
decedent's estate representative or qualifying heir pursuant to
section 1310 of the Surrogate's Court Procedure Act is making claim to
abandoned funds. However, we believe that the statute does not require
that such agreements be filed with the court when the agreement is
signed by a person claiming the property as a qualified affiant
pursuant to section 1310 of the Surrogate's Court Procedure Act. In
practice such agreements are filed in bulk by the property locator's
agent, in a county of its choice, without a companion estate
proceeding. The absence of an estate proceeding renders such filings
meaningless from an oversight perspective and is unnecessary pursuant
to statute. In the opinion of our Advisory Committee, with limited
exceptions, property locator agreements concerning assets of a
decedent should be executed only by fiduciaries and thereafter filed
in the Surrogate's Court which issued such letters, so that all
interests of the rightful heirs of a decedent and creditors of an
estate are protected.

Administratively, the Office of Unclaimed Funds in the OSC has
determined it will no longer accept an abandoned property location
services agreement where letters have not been issued to an estate
representative, unless it is executed by the spouse or children of a
decedent or the amount at issue is less than $1,000. Further, where,
excepting those cases where a locator's agreement is signed by the
spouse or children of a decedent, all other claimants would be
required to obtain letters pursuant to Article 13 of the SCPA for
claims in excess of $1,000. The process can be completed on line,
costs one dollar for a certificate, and more adequately ensures that


all distributees, beneficiaries and creditors are protected. The OSC
has proposed and expects to adopt regulatory changes to this effect.

This measure would enact the necessary statutory amendments to ensure
that these agreements are not accepted for filing by the Surrogate's
Court unless a fiduciary has been appointed or is pending before the
court.

This measure, which would have no meaningful impact on the public
treasury, would take effect immediately.

Legislative History:

OCA 2014-76 Senate 7077 (Senator Bonacic) (ref to Judiciary)

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

                                 7077--A
    Cal. No. 426

                            I N  S E N A T E

                             April 23, 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 -- reported favorably from
  said committee, ordered to first and second report, amended on  second
  report,  ordered  to  a third reading, and to be reprinted as amended,
  retaining its place in the order of third reading

AN ACT to amend the estates, powers  and  trusts  law,  in  relation  to
  powers of attorney in relation to decedents' estates required to be in
  writing and recorded

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

  Section 1. Section 13-2.3 of the estates, powers  and  trusts  law  is
amended by adding a new paragraph (e) to read as follows:
  (E)  NOTWITHSTANDING  THE  PROVISIONS OF ANY OTHER STATUTE OR RULE, NO
INSTRUMENT CONTAINING A DELEGATION OF POWERS,  ASSIGNMENT  OF  INTEREST,
FEE  ARRANGEMENT,  OR  ANY  INSTRUMENT  OF  LIKE  IMPORT CREATED FOR THE
PURPOSE OF PARTICIPATING ON BEHALF OF AN INDIVIDUAL IN  ANY  APPLICATION
SEEKING  THE  RECOVERY  OF PROPERTY PURSUANT TO SECTION FOURTEEN HUNDRED
SIXTEEN OF THE ABANDONED PROPERTY LAW OR SECTION THIRTEEN HUNDRED TEN OF
THE SURROGATE'S COURT PROCEDURE ACT, NOR ANY POWER OF ATTORNEY, SHALL BE
ACCEPTED FOR FILING OR RECORDING BY THE SURROGATE'S COURT OF  A  PARTIC-
ULAR  COUNTY  UNLESS  THE  AMOUNT  AT ISSUE IS IN EXCESS OF ONE THOUSAND
DOLLARS  OR  A  FIDUCIARY,  AS  THAT  TERM  IS  DEFINED  BY  SUBDIVISION
TWENTY-ONE  OF SECTION ONE HUNDRED THREE OF THE SURROGATE'S COURT PROCE-
DURE ACT, HAS BEEN APPOINTED, OR A PROCEEDING FOR THE APPOINTMENT  OF  A
FIDUCIARY  IS  PENDING IN SUCH COURT. THE PROVISIONS OF PARAGRAPH (B) OF
THIS SECTION SHALL APPLY TO ALL  INSTRUMENTS  ELIGIBLE  FOR  FILING  AND
RECORDING HEREUNDER.
  S 2. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13631-02-4

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