S T A T E O F N E W Y O R K
________________________________________________________________________
6809
2017-2018 Regular Sessions
I N A S S E M B L Y
March 21, 2017
___________
Introduced by M. of A. STIRPE, WEINSTEIN -- (at request of the Office of
Court Administration) -- read once and referred to the Committee on
Judiciary
AN ACT to amend the estates, powers and trusts law, in relation to
testamentary disposition to trustee under, or in accordance with,
terms of existing inter vivos trust
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 3-3.7 of the estates, powers and trusts law, para-
graph (a) as amended by chapter 139 of the laws of 1997 and such section
as renumbered by chapter 472 of the laws of 1967, is amended to read as
follows:
§ 3-3.7 Testamentary disposition to trustee under, or in accordance with
terms of existing inter vivos trust
(a) A testator [or testatrix] may by will dispose of or appoint all or
any part of [his or her] SUCH TESTATOR'S estate to a trustee of a trust,
the terms of which are evidenced by a written instrument executed by the
testator [or testatrix], the testator [or testatrix] and some other
person, or some other person, including a trust established for the
receipt of the proceeds of an annuity or pure endowment contract, or of
a thrift, savings, pension, retirement, death benefit, stock bonus, or
profit-sharing plan or system or a funded or unfunded life, group life,
industrial life or accident and health insurance trust (although the
[settlor] PERSON ESTABLISHING SUCH TRUST has reserved any or all rights
of ownership of the insurance contracts), regardless of [the existence,
size or character of the corpus of such insurance trust or other trust]
WHETHER ANY ASSETS HAVE BEEN TRANSFERRED TO THE TRUST PRIOR TO THE DEATH
OF THE TESTATOR; provided that [such] THE trust instrument is IDENTIFIED
IN THE WILL AND IS executed BY THE PERSON ESTABLISHING THE TRUST PRIOR
TO OR CONTEMPORANEOUSLY WITH THE EXECUTION OF THE WILL AND, UNLESS SUCH
PERSON IS THE SOLE TRUSTEE, BY AT LEAST ONE TRUSTEE THEREOF PRIOR TO THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09736-01-7
A. 6809 2
DEATH OF THE TESTATOR, in the manner [provided for in 7-1.17, prior to
or contemporaneously with the execution of the will, and such trust
instrument is identified in such will] REQUIRED BY THE LAWS OF THIS
STATE FOR THE RECORDING OF A CONVEYANCE OF REAL PROPERTY OR, IN LIEU
THEREOF, IN THE PRESENCE OF TWO WITNESSES WHO SHALL AFFIX THEIR SIGNA-
TURES TO THE TRUST INSTRUMENT.
(b) The testamentary disposition or appointment is valid, even though:
(1) The trust instrument is amendable or revocable, or both, provided,
however, that the disposition or appointment shall be given effect in
accordance with the terms of the trust instrument, including an amend-
ment thereto, as they appear in writing on the date of the testator's
death and, where the testator so directs, including amendments to the
trust instrument after his OR HER death, if the instrument evidencing
such amendment is executed and acknowledged in the manner [herein]
provided for [executing and acknowledging the instrument which it
amends] IN PARAGRAPH (B) OF 7-1.17.
(2) The right is reserved in such trust instrument (A) to exercise any
power over any property transferred to or held in the trust or (B) to
direct during the lifetime of the [settlor] PERSON ESTABLISHING THE
TRUST or any other person, the persons and organizations to whom or in
whose behalf the income shall be paid or the principal distributed.
(3) The trust instrument or any amendment thereto was not executed and
attested in accordance with the formalities prescribed by 3-2.1.
(c) The property so disposed of or appointed by will becomes a part of
the trust to which it is given, and title thereto vests in the trustee
to be administered and disposed of in accordance with the terms of the
trust instrument.
(d) Any disposition or appointment to the trustee made by a testator
who died prior to the effective date of this section, which would be
invalid under the applicable law of this state pre-existing the effec-
tive date of this section, shall be construed to create a testamentary
trust under and in accordance with the terms of the trust instrument
which the testator originally intended should embrace the property
disposed of or appointed, as such terms appear in such trust instrument
at the date of the testator's death.
(e) A revocation or termination of the trust before the death of the
testator shall cause the disposition or appointment to fail, unless the
testator has made an alternative disposition.
§ 2. This act shall take effect immediately and shall apply to all
testamentary dispositions to a trustee occurring on or after such effec-
tive date.