NY State Assembly Bill 2017-A9764A

Assembly Bill A9764A

2017-2018 Legislative Session

Relates to the computation and allocation of the commissions of trustees of charitable trusts; repealer

download bill text pdf

Archive: Last Bill Status - On Floor Calendar

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 07, 2018	amended on third reading 9764a
Mar 22, 2018	advanced to third reading cal.723
Mar 20, 2018	reported
Feb 06, 2018	referred to judiciary

Bill Amendments

Original

A (Active)

2017-A9764 - Details

See Senate Version of this Bill:: S6765
Law Section:: Surrogate's Court Procedure Act
Laws Affected:: Amd §§2308, 2309 & 2312, rpld §2308 sub 6 ¶(c), SCPA
Versions Introduced in Other Legislative Sessions:: 2019-2020: A7523
2021-2022: A7800

2017-A9764 - Summary

Relates to the computation and allocation of the commissions of trustees of charitable trusts.

2017-A9764 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9764
 
                           I N  A S S E M B L Y
 
                             February 6, 2018
                                ___________
 
 Introduced  by  M.  of A. DINOWITZ -- (at request of the Office of Court
   Administration) -- read once and referred to the Committee on  Judici-
   ary
 
 AN  ACT to amend the surrogate's court procedure act, in relation to the
   computation and allocation of the commissions of trustees of  charita-
   ble  trusts;  and  repealing  certain  provisions of such law relating
   thereto

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraphs (a) and (b) of subdivision 5 of section 2308 of
 the surrogate's court procedure act, paragraph (a) as amended by chapter
 936 of the laws of 1984, are amended to read as follows:
   (a) During the continuance of a trust created solely for public, reli-
 gious, charitable, scientific, literary, educational or  fraternal  uses
 and  during  the period of continuance of such a trust ESTABLISHED after
 the termination of a life use or uses the trustee shall be  entitled  to
 and  may  retain  ANNUAL  commissions [from income in an amount annually
 equal to 6 per cent of income collected in each year] ACCORDING  TO  THE
 TERMS SPECIFIED IN SUBDIVISION 2 OF THIS SECTION, BUT ONLY TO THE EXTENT
 OF  80  PERCENT  OF  THE RATES STATED THEREIN. NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW, WITH RESPECT  TO  ANY  PORTION  OF  SUCH  TRUST  WHICH
 EXCEEDS  A  PRINCIPAL  VALUE  OF TWENTY MILLION DOLLARS, THE TRUSTEE MAY
 ONLY TAKE ANNUAL COMMISSIONS TO THE EXTENT OF 50  PERCENT  OF  THE  RATE
 SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION 2 OF THIS SECTION.
   (b)  In  the  case  of  a trust [created solely for public, religious,
 charitable, scientific, literary, educational  or  fraternal  uses  the]
 DESCRIBED  IN  PARAGRAPH (A) OF THIS SUBDIVISION, A trustee shall not be
 entitled to any commission from principal AS SPECIFIED IN SUBDIVISION  1
 OF THIS SECTION FOR PAYING OUT PRINCIPAL.
   § 2. Paragraph (c) of subdivision 6 of section 2308 of the surrogate's
 court procedure act is REPEALED.
   § 3. Subdivision 12 of section 2308 of the surrogate's court procedure
 act,  as added by chapter 237 of the laws of 1978, is amended to read as
 follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD09529-05-8

 A. 9764                             2
 
   12. If a trustee of a trust is authorized or required by the terms  of
 the  will  to  accumulate  income  for any purpose permitted by law, any
 income so accumulated which is not added to principal of the trust shall
 be deemed a separate trust for purposes  of  this  subdivision  and  the
 trustee shall be entitled to commissions in respect thereof at the rates
 and according to the terms and provisions of subdivisions 1 [and], 2 AND
 5  of  this  section as though, for purposes of computing commissions of
 the trustee, income so accumulated was principal.
   § 4. Subdivision 3 of section 2309 of the surrogate's court  procedure
 act,  as  amended by chapter 243 of the laws of 2001, is amended to read
 as follows:
   3. Unless the will or lifetime trust instrument  otherwise  explicitly
 provides  the annual commissions allowed by [subdivision 2] THIS SECTION
 shall be payable one-third from the income of the trust  and  two-thirds
 from  the  principal of the trust. However, in the case of a trust whose
 definition of income is governed by 11-2.4 of the  estates,  powers  and
 trusts  law  or  a  charitable  remainder  annuity trust or a charitable
 remainder unitrust, as defined in section six hundred sixty-four of  the
 Internal  Revenue  Code of nineteen hundred eighty-six, as amended, such
 annual commissions shall be payable from the corpus of  any  such  trust
 after  allowance  for  the  annuity or unitrust amounts and shall not be
 payable out of such annuity or unitrust amounts.
   § 5. Paragraphs (a) and (b) of subdivision 5 of section  2309  of  the
 surrogate's court procedure act, paragraph (a) as amended by chapter 936
 of the laws of 1984, are amended to read as follows:
   (a) During the continuance of a trust created solely for public, reli-
 gious,  charitable,  scientific, literary, educational or fraternal uses
 and during the period of continuance of such a trust  ESTABLISHED  after
 the  termination  of a life use or uses the trustee shall be entitled to
 and may retain ANNUAL commissions [from income  in  an  amount  annually
 equal  to  6 per cent of income collected in each year] ACCORDING TO THE
 TERMS SPECIFIED IN SUBDIVISION 2 OF THIS SECTION, BUT ONLY TO THE EXTENT
 OF 80 PERCENT OF THE RATES STATED  THEREIN.  NOTWITHSTANDING  ANY  OTHER
 PROVISION  OF  LAW,  WITH  RESPECT  TO  ANY  PORTION OF SUCH TRUST WHICH
 EXCEEDS A PRINCIPAL VALUE OF TWENTY MILLION  DOLLARS,  THE  TRUSTEE  MAY
 ONLY  TAKE  ANNUAL  COMMISSIONS  TO THE EXTENT OF 50 PERCENT OF THE RATE
 SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION 2 OF THIS SECTION.
   (b) In the case of a trust  [created  solely  for  public,  religious,
 charitable,  scientific,  literary,  educational  or fraternal uses the]
 DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION, A trustee shall  not  be
 entitled  to any commission from principal AS SPECIFIED IN SUBDIVISION 1
 OF THIS SECTION FOR PAYING OUT PRINCIPAL.
   § 6. Paragraphs (a) and (b) of subdivision 3 of section  2312  of  the
 surrogate's  court  procedure act, as amended by chapter 511 of the laws
 of 1987, are amended to read as follows:
   (a) during the continuance of a trust created solely for public, reli-
 gious, charitable, scientific, literary, educational or  fraternal  uses
 and  during  the period of continuance of such a trust ESTABLISHED after
 the termination of a life use or uses a corporate trustee shall be enti-
 tled to and may retain ANNUAL commissions [from  income]  in  accordance
 with  the  provisions of subdivision 1 or 2 [hereof] OF THIS SECTION, as
 the case may be, EXCEPT THAT THE TRUSTEE SHALL  NOT  BE  ENTITLED  TO  A
 COMMISSION FOR PAYING OUT PRINCIPAL.
   (b) In the case of a trust created solely for public, religious, char-
 itable,  scientific, literary, educational or fraternal uses a corporate

 A. 9764                             3
 
 trustee shall not be entitled to any commission [from]  FOR  PAYING  OUT
 principal.
   §  7.  This  act  shall take effect immediately and shall apply to all
 trusts in existence on or after such effective date;  provided,  however
 that  a trustee of a trust in existence on such effective date may elect
 to continue to take commissions under the law in effect  prior  to  such
 effective date until December 31 of the year this act takes effect.

2017-A9764A (ACTIVE) - Details

See Senate Version of this Bill:: S6765
Law Section:: Surrogate's Court Procedure Act
Laws Affected:: Amd §§2308, 2309 & 2312, rpld §2308 sub 6 ¶(c), SCPA
Versions Introduced in Other Legislative Sessions:: 2019-2020: A7523
2021-2022: A7800

2017-A9764A (ACTIVE) - Summary

Relates to the computation and allocation of the commissions of trustees of charitable trusts.

2017-A9764A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9764--A
                                                         Cal. No. 723
 
                           I N  A S S E M B L Y
 
                             February 6, 2018
                                ___________
 
 Introduced  by  M.  of A. DINOWITZ -- (at request of the Office of Court
   Administration) -- read once and referred to the Committee on  Judici-
   ary  --  reported from committee, advanced to a third reading, amended
   and ordered reprinted, retaining its place on the order of third read-
   ing

 AN ACT to amend the surrogate's court procedure act, in relation to  the
   computation  and allocation of the commissions of trustees of charita-
   ble trusts; and repealing certain  provisions  of  such  law  relating
   thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section  2308  of  the  surrogate's  court
 procedure act, as amended by chapter 243 of the laws of 2001, is amended
 to read as follows:
   3.  Unless  the will otherwise explicitly provides, the annual commis-
 sions allowed by [subdivision two of]  this  section  shall  be  payable
 one-third from the income of the trust and two-thirds from the principal
 of the trust. However, in the case of a trust whose definition of income
 is governed by 11-2.4 of the estates, powers and trusts law, such annual
 commissions  shall  be  payable  from the corpus of any such trust after
 allowance for the unitrust amount and shall not be payable out  of  such
 unitrust amount.
   §  2.   Paragraphs (a) and (b) of subdivision 5 of section 2308 of the
 surrogate's court procedure act, paragraph (a) as amended by chapter 936
 of the laws of 1984, are amended to read as follows:
   (a) During the continuance of a trust created solely for public, reli-
 gious, charitable, scientific, literary, educational or  fraternal  uses
 and  during  the period of continuance of such a trust ESTABLISHED after
 the termination of a life use or uses the trustee shall be  entitled  to
 and  may  retain  ANNUAL  commissions [from income in an amount annually
 equal to 6 per cent of income collected in each year] ACCORDING  TO  THE
 TERMS SPECIFIED IN SUBDIVISION 2 OF THIS SECTION, BUT ONLY TO THE EXTENT
 OF  80  PERCENT  OF  THE RATES STATED THEREIN. NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW, WITH RESPECT  TO  ANY  PORTION  OF  SUCH  TRUST  WHICH

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09529-07-8

 A. 9764--A                          2
 
 EXCEEDS  A  PRINCIPAL  VALUE  OF TWENTY MILLION DOLLARS, THE TRUSTEE MAY
 ONLY TAKE ANNUAL COMMISSIONS TO THE EXTENT OF 50  PERCENT  OF  THE  RATE
 SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION 2 OF THIS SECTION.
   (b)  In  the  case  of  a trust [created solely for public, religious,
 charitable, scientific, literary, educational  or  fraternal  uses  the]
 DESCRIBED  IN  PARAGRAPH (A) OF THIS SUBDIVISION, A trustee shall not be
 entitled to any commission from principal AS SPECIFIED IN SUBDIVISION  1
 OF THIS SECTION FOR PAYING OUT PRINCIPAL.
   § 3. Paragraph (c) of subdivision 6 of section 2308 of the surrogate's
 court procedure act is REPEALED.
   § 4. Subdivision 12 of section 2308 of the surrogate's court procedure
 act,  as added by chapter 237 of the laws of 1978, is amended to read as
 follows:
   12. If a trustee of a trust is authorized or required by the terms  of
 the  will  to  accumulate  income  for any purpose permitted by law, any
 income so accumulated which is not added to principal of the trust shall
 be deemed a separate trust for purposes  of  this  subdivision  and  the
 trustee shall be entitled to commissions in respect thereof at the rates
 and according to the terms and provisions of subdivisions 1 [and], 2 AND
 5  of  this  section as though, for purposes of computing commissions of
 the trustee, income so accumulated was principal.
   § 5. Subdivision 3 of section 2309 of the surrogate's court  procedure
 act,  as  amended by chapter 243 of the laws of 2001, is amended to read
 as follows:
   3. Unless the will or lifetime trust instrument  otherwise  explicitly
 provides  the annual commissions allowed by [subdivision 2] THIS SECTION
 shall be payable one-third from the income of the trust  and  two-thirds
 from  the  principal of the trust. However, in the case of a trust whose
 definition of income is governed by 11-2.4 of the  estates,  powers  and
 trusts  law  or  a  charitable  remainder  annuity trust or a charitable
 remainder unitrust, as defined in section six hundred sixty-four of  the
 Internal  Revenue  Code of nineteen hundred eighty-six, as amended, such
 annual commissions shall be payable from the corpus of  any  such  trust
 after  allowance  for  the  annuity or unitrust amounts and shall not be
 payable out of such annuity or unitrust amounts.
   § 6. Paragraphs (a) and (b) of subdivision 5 of section  2309  of  the
 surrogate's court procedure act, paragraph (a) as amended by chapter 936
 of the laws of 1984, are amended to read as follows:
   (a) During the continuance of a trust created solely for public, reli-
 gious,  charitable,  scientific, literary, educational or fraternal uses
 and during the period of continuance of such a trust  ESTABLISHED  after
 the  termination  of a life use or uses the trustee shall be entitled to
 and may retain ANNUAL commissions [from income  in  an  amount  annually
 equal  to  6 per cent of income collected in each year] ACCORDING TO THE
 TERMS SPECIFIED IN SUBDIVISION 2 OF THIS SECTION, BUT ONLY TO THE EXTENT
 OF 80 PERCENT OF THE RATES STATED  THEREIN.  NOTWITHSTANDING  ANY  OTHER
 PROVISION  OF  LAW,  WITH  RESPECT  TO  ANY  PORTION OF SUCH TRUST WHICH
 EXCEEDS A PRINCIPAL VALUE OF TWENTY MILLION  DOLLARS,  THE  TRUSTEE  MAY
 ONLY  TAKE  ANNUAL  COMMISSIONS  TO THE EXTENT OF 50 PERCENT OF THE RATE
 SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION 2 OF THIS SECTION.
   (b) In the case of a trust  [created  solely  for  public,  religious,
 charitable,  scientific,  literary,  educational  or fraternal uses the]
 DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION, A trustee shall  not  be
 entitled  to any commission from principal AS SPECIFIED IN SUBDIVISION 1
 OF THIS SECTION FOR PAYING OUT PRINCIPAL.

 A. 9764--A                          3
 
   § 7. Paragraphs (a) and (b) of subdivision 3 of section  2312  of  the
 surrogate's  court  procedure act, as amended by chapter 511 of the laws
 of 1987, are amended to read as follows:
   (a) during the continuance of a trust created solely for public, reli-
 gious,  charitable,  scientific, literary, educational or fraternal uses
 and during the period of continuance of such a trust  ESTABLISHED  after
 the termination of a life use or uses a corporate trustee shall be enti-
 tled  to  and  may retain ANNUAL commissions [from income] in accordance
 with the provisions of subdivision 1 or 2 [hereof] OF THIS  SECTION,  as
 the  case  may  be,  EXCEPT  THAT THE TRUSTEE SHALL NOT BE ENTITLED TO A
 COMMISSION FOR PAYING OUT PRINCIPAL.
   (b) In the case of a trust created solely for public, religious, char-
 itable, scientific, literary, educational or fraternal uses a  corporate
 trustee  shall  not  be entitled to any commission [from] FOR PAYING OUT
 principal.
   § 8. This act shall take effect immediately and  shall  apply  to  all
 trusts  in  existence on or after such effective date; provided, however
 that a trustee of a trust in existence on such effective date may  elect
 to  continue  to  take commissions under the law in effect prior to such
 effective date until December 31 of the year this act takes effect.

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