S T A T E O F N E W Y O R K
________________________________________________________________________
7521
2019-2020 Regular Sessions
I N A S S E M B L Y
May 8, 2019
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Introduced by M. of A. ZEBROWSKI, DINOWITZ -- (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 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.
LBD10075-01-9