senate Bill S4866A

2017-2018 Legislative Session

Relates to trust accounting income and principal

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Archive: Last Bill Status - In Senate Committee Rules Committee


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

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Actions

view actions (15)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2018 committed to rules
May 31, 2018 advanced to third reading
May 30, 2018 2nd report cal.
May 22, 2018 1st report cal.1319
May 07, 2018 print number 4866a
May 07, 2018 amend and recommit to judiciary
Jan 03, 2018 referred to judiciary
returned to senate
died in assembly
Jun 13, 2017 referred to judiciary
delivered to assembly
passed senate
Jun 05, 2017 ordered to third reading cal.1477
committee discharged and committed to rules
Mar 03, 2017 referred to judiciary

Votes

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S4866 - Details

See Assembly Version of this Bill:
A9765
Current Committee:
Senate Rules
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd §§11-2.3 & 11-A-4.4, EPT L
Versions Introduced in 2015-2016 Legislative Session:
S5620

S4866 - Summary

Relates to trust accounting income and principal; allows a trustee to allocate to income gains from the sale or exchange or other disposition of specified principal assets.

S4866 - Sponsor Memo

S4866 - Bill Text download pdf


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

                                  4866

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                              March 3, 2017
                               ___________

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 trust
  accounting income and principal

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

  Section 1. Paragraph 2 of section 11-A-4.4 of the estates, powers  and
trusts  law,  as added by chapter 243 of the laws of 2001, is amended to
read as follows:
  (2) money or other property received from the sale,  exchange,  liqui-
dation,  or  change  in  form  of  a principal asset, including realized
profit, subject to this part; PROVIDED, HOWEVER, THAT A TRUSTEE MAY,  IN
A  REASONABLE  AND  IMPARTIAL EXERCISE OF DISCRETION, ALLOCATE TO INCOME
GAINS FROM THE SALE OR EXCHANGE  OF  A  CAPITAL  ASSET  (AS  DEFINED  IN
SECTION  1221  OF  THE INTERNAL REVENUE CODE OF 1986, AS AMENDED) TO THE
EXTENT THAT PRINCIPAL IS RE-CHARACTERIZED AS INCOME BY THE  EXERCISE  OF
THE  POWER  TO  ADJUST  UNDER  SUBPARAGRAPH  11-2.3(B)(5),  AND PROVIDED
FURTHER, HOWEVER, THAT A TRUSTEE  WHO  HAS  AN  UNLIMITED  DISCRETIONARY
POWER  TO  DISTRIBUTE PRINCIPAL MAY, IN A REASONABLE AND IMPARTIAL EXER-
CISE OF DISCRETION, ALLOCATE TO INCOME ANY OR ALL GAINS FROM THE SALE OR
EXCHANGE OF A CAPITAL ASSET (AS DEFINED IN SECTION 1221 OF THE  INTERNAL
REVENUE CODE OF 1986, AS AMENDED);
  §  2.  This  act  shall take effect immediately and shall apply to all
trusts, whenever established.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09597-01-7

S4866A (ACTIVE) - Details

See Assembly Version of this Bill:
A9765
Current Committee:
Senate Rules
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd §§11-2.3 & 11-A-4.4, EPT L
Versions Introduced in 2015-2016 Legislative Session:
S5620

S4866A (ACTIVE) - Summary

Relates to trust accounting income and principal; allows a trustee to allocate to income gains from the sale or exchange or other disposition of specified principal assets.

S4866A (ACTIVE) - Sponsor Memo

S4866A (ACTIVE) - Bill Text download pdf


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

                                 4866--A

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                              March 3, 2017
                               ___________

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 -- recommitted to the Commit-
  tee on Judiciary in accordance with Senate Rule 6, sec. 8 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the estates, powers and trusts law, in relation to trust
  accounting income and principal

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

  Section  1.   Clause (A) of subparagraph 5 of paragraph (b) of section
11-2.3 of the estates, powers and trusts law, as amended by chapter  408
of the laws of 2008, is amended to read as follows:
  (A)  Where the rules in article 11-A apply to a trust and the terms of
the trust describe the amount that may or must be distributed to a bene-
ficiary by referring to the trust's income, the prudent investor  stand-
ard  also  authorizes the trustee to adjust between principal and income
to the extent the trustee considers advisable to enable the  trustee  to
make  appropriate  present  and  future distributions in accordance with
clause (b)(3)(A) if the trustee determines, in light of  its  investment
decisions,  the  consideration factors incorporated in clause (b)(5)(B),
and the accounting income expected to be produced by applying the  rules
in article 11-A, that such an adjustment would be fair and reasonable to
all  of  the beneficiaries.  IN ADJUSTING FROM INCOME TO PRINCIPAL UNDER
THE POWER CONFERRED BY THIS CLAUSE, THE TRUSTEE MAY ALLOCATE TO  PRINCI-
PAL ANY FORM OF RECEIPT WHICH WOULD OTHERWISE BE CHARACTERIZED AS INCOME
AND  MAY  SPECIFY  THE PARTICULAR RECEIPT OR RECEIPTS BEING ALLOCATED TO
PRINCIPAL. IN ADJUSTING FROM PRINCIPAL TO INCOME  THE  TRUSTEE  (I)  MAY
ALLOCATE  TO  INCOME ANY ASSET WHICH WOULD OTHERWISE BE CHARACTERIZED AS
PRINCIPAL, REGARDLESS OF WHETHER IT CONSTITUTES ORIGINAL  TRUST  PRINCI-
PAL,  ACCUMULATED  INCOME,  OR REALIZED OR UNREALIZED APPRECIATION, (II)

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

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