Assembly Bill A11590

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11590
 
                           I N  A S S E M B L Y
 
                               June 5, 2026
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Weprin) --
   read once and referred to the Committee on Judiciary
 
 AN ACT to amend the surrogate's court  procedure  act,  in  relation  to
   assignments from a decedent's estate made to a transferee for value
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The surrogate's court procedure act is amended by adding  a
 new section 2116 to read as follows:
 § 2116. ASSIGNMENT MADE TO A TRANSFEREE FOR VALUE ACQUIRING ANY INTEREST
           OF  A BENEFICIARY IN EXCHANGE FOR CASH OR OTHER CONSIDERATION;
           WRITTEN AGREEMENT
   1. WHERE AN ASSIGNMENT FROM A DECEDENT'S ESTATE IS MADE TO A TRANSFER-
 EE FOR VALUE WHO ACQUIRES ANY INTEREST OF A BENEFICIARY IN EXCHANGE  FOR
 CASH  OR  OTHER CONSIDERATION, SUCH ASSIGNMENT SHALL BE IN THE FORM OF A
 WRITTEN AGREEMENT AND  SHALL  BE  SUBJECT  TO  THE  PROVISIONS  OF  THIS
 SECTION.
   2. FOR PURPOSES OF THIS SECTION, "TRANSFEREE FOR VALUE" MEANS A PERSON
 WHO SATISFIES BOTH OF THE FOLLOWING CRITERIA:
   (A) THE PERSON PURCHASES THE INTEREST FROM A BENEFICIARY FOR CONSIDER-
 ATION PURSUANT TO A WRITTEN AGREEMENT; AND
   (B)  THE  PERSON,  DIRECTLY  OR  INDIRECTLY,  REGULARLY ENGAGES IN THE
 PURCHASE OF BENEFICIAL INTERESTS IN ESTATES FOR CONSIDERATION.
   3. THIS SECTION SHALL NOT APPLY TO ANY OF THE FOLLOWING:
   (A) A TRANSFEREE WHO IS A BENEFICIARY OF THE ESTATE OR  A  PERSON  WHO
 HAS  A CLAIM TO DISTRIBUTION FROM THE ESTATE UNDER ANOTHER INSTRUMENT OR
 BY INTESTATE SUCCESSION;
   (B) A TRANSFEREE WHO IS EITHER THE REGISTERED DOMESTIC PARTNER OF  THE
 BENEFICIARY,  OR IS RELATED BY BLOOD, MARRIAGE, OR ADOPTION TO THE BENE-
 FICIARY OR THE DECEDENT; OR
   (C) A TRANSFEREE WHO IS ENGAGED IN THE BUSINESS OF LOCATING MISSING OR
 UNKNOWN HEIRS AND WHO ACQUIRES AN INTEREST FROM A BENEFICIARY SOLELY  IN
 EXCHANGE  FOR PROVIDING INFORMATION OR SERVICES ASSOCIATED WITH LOCATING
 THE HEIR OR BENEFICIARY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15833-01-6
              

 A. 11590                            2
 
   4. A WRITTEN AGREEMENT REQUIRED BY THIS SECTION SHALL BE VALID ONLY IF
 ALL OF THE FOLLOWING CONDITIONS ARE MET:
   (A) THE EXECUTED WRITTEN AGREEMENT IS FILED WITH THE COURT, IN ACCORD-
 ANCE  WITH 22 NYCRR 207.47, NOT LATER THAN FORTY-FIVE DAYS FOLLOWING THE
 DATE OF ITS EXECUTION OR, IF ADMINISTRATION OF THE DECEDENT'S ESTATE HAS
 NOT COMMENCED, NOT LATER THAN FORTY-FIVE DAYS FOLLOWING THE ISSUANCE  BY
 THE  COURT OF FIDUCIARY LETTERS. PRIOR TO FILING OR SERVING SUCH WRITTEN
 AGREEMENT, THE TRANSFEREE FOR VALUE SHALL REDACT ANY PERSONALLY  IDENTI-
 FYING INFORMATION ABOUT THE BENEFICIARY, OTHER THAN THE NAME AND ADDRESS
 OF  THE BENEFICIARY, AND ANY FINANCIAL INFORMATION PROVIDED BY THE BENE-
 FICIARY TO THE TRANSFEREE FOR VALUE ON THE APPLICATION FOR CASH OR OTHER
 CONSIDERATION, FROM THE AGREEMENT;
   (B) IF THE NEGOTIATION OR DISCUSSION BETWEEN THE BENEFICIARY  AND  THE
 TRANSFEREE  FOR  VALUE LEADING TO THE EXECUTION OF THE WRITTEN AGREEMENT
 BY THE BENEFICIARY WAS CONDUCTED IN A LANGUAGE OTHER THAN  ENGLISH,  THE
 BENEFICIARY  SHALL  RECEIVE  THE  WRITTEN AGREEMENT IN ENGLISH, TOGETHER
 WITH A COPY OF THE AGREEMENT TRANSLATED INTO THE LANGUAGE  IN  WHICH  IT
 WAS  NEGOTIATED  OR  DISCUSSED. THE WRITTEN AGREEMENT AND THE TRANSLATED
 COPY, IF ANY, SHALL BE PROVIDED TO THE BENEFICIARY;
   (C) THE DOCUMENTS SIGNED BY,  OR  PROVIDED  TO,  THE  BENEFICIARY  ARE
 PRINTED IN AT LEAST TEN-POINT TYPE;
   (D)  THE  TRANSFEREE  FOR  VALUE  EXECUTES  A DECLARATION OR AFFIDAVIT
 ATTESTING THAT THE REQUIREMENTS OF THIS SECTION HAVE BEEN SATISFIED, AND
 THE DECLARATION OR AFFIDAVIT IS FILED WITH THE COURT  WITHIN  FORTY-FIVE
 DAYS  OF EXECUTION OF THE WRITTEN AGREEMENT OR, IF ADMINISTRATION OF THE
 DECEDENT'S ESTATE HAS NOT COMMENCED,  NOT  LATER  THAN  FORTY-FIVE  DAYS
 FOLLOWING THE ISSUANCE BY THE COURT OF FIDUCIARY LETTERS; AND
   (E)  NOTICE OF THE ASSIGNMENT IS SERVED ON THE PERSONAL REPRESENTATIVE
 OR THE ATTORNEY OF RECORD FOR THE PERSONAL REPRESENTATIVE WITHIN  FORTY-
 FIVE DAYS OF EXECUTION OF THE WRITTEN AGREEMENT OR, IF LETTERS OF ADMIN-
 ISTRATION  OR  LETTERS TESTAMENTARY HAVE NOT BEEN ISSUED, NOT LATER THAN
 FORTY-FIVE DAYS  FOLLOWING  THE  ISSUANCE  BY  THE  COURT  OF  FIDUCIARY
 LETTERS.
   5.  THE  WRITTEN AGREEMENT SHALL INCLUDE THE FOLLOWING TERMS, IN ADDI-
 TION TO ANY OTHER TERMS:
   (A) THE AMOUNT OF CONSIDERATION PAID TO THE BENEFICIARY;
   (B) A DESCRIPTION OF THE TRANSFERRED INTEREST;
   (C) IF THE WRITTEN AGREEMENT SO PROVIDES,  THE  AMOUNT  BY  WHICH  THE
 TRANSFEREE  FOR VALUE WOULD HAVE ITS DISTRIBUTION REDUCED IF THE BENEFI-
 CIAL INTEREST ASSIGNED IS DISTRIBUTED PRIOR TO A SPECIFIED DATE; AND
   (D) A STATEMENT OF THE TOTAL OF ALL COSTS OR FEES CHARGED TO THE BENE-
 FICIARY RESULTING FROM THE TRANSFER FOR VALUE, INCLUDING, BUT NOT LIMIT-
 ED TO, TRANSACTION OR PROCESSING FEES, CREDIT REPORT COSTS, TITLE SEARCH
 COSTS, DUE DILIGENCE FEES, FILING  FEES,  BANK  OR  ELECTRONIC  TRANSFER
 COSTS, OR ANY OTHER FEES OR COSTS. IF ALL THE COSTS AND FEES ARE PAID BY
 THE  TRANSFEREE  FOR  VALUE AND ARE INCLUDED IN THE AMOUNT OF THE TRANS-
 FERRED INTEREST, THEN THE STATEMENT OF COSTS NEED NOT ITEMIZE ANY  COSTS
 OR  FEES.  THIS  SUBDIVISION  SHALL NOT APPLY TO COSTS, FEES, OR DAMAGES
 ARISING OUT OF A MATERIAL BREACH OF THE AGREEMENT OR FRAUD BY OR ON  THE
 PART OF THE BENEFICIARY.
   6.  A  WRITTEN  AGREEMENT  SHALL  NOT  CONTAIN  ANY  OF  THE FOLLOWING
 PROVISIONS AND, IF ANY SUCH PROVISION IS INCLUDED, SUCH PROVISION  SHALL
 BE DEEMED NULL AND VOID:
   (A)  A PROVISION HOLDING HARMLESS THE TRANSFEREE FOR VALUE, OTHER THAN
 FOR LIABILITY ARISING OUT OF FRAUD BY THE BENEFICIARY;
 A. 11590                            3
 
   (B) A PROVISION GRANTING TO THE TRANSFEREE FOR VALUE AGENCY POWERS  TO
 REPRESENT THE BENEFICIARY'S INTEREST IN THE DECEDENT'S ESTATE BEYOND THE
 INTEREST TRANSFERRED;
   (C) A PROVISION REQUIRING PAYMENT BY THE BENEFICIARY TO THE TRANSFEREE
 FOR  VALUE FOR SERVICES NOT RELATED TO THE WRITTEN AGREEMENT OR SERVICES
 OTHER THAN THE TRANSFER OF INTEREST UNDER THE WRITTEN AGREEMENT; AND
   (D) A PROVISION PERMITTING THE TRANSFEREE FOR VALUE TO  HAVE  RECOURSE
 AGAINST THE BENEFICIARY IF THE DISTRIBUTION FROM THE ESTATE IN SATISFAC-
 TION  OF  THE  BENEFICIAL  INTEREST IS LESS THAN THE BENEFICIAL INTEREST
 ASSIGNED TO THE TRANSFEREE  FOR  VALUE,  OTHER  THAN  RECOURSE  FOR  ANY
 EXPENSE OR DAMAGE ARISING OUT OF THE MATERIAL BREACH OF THE AGREEMENT OR
 FRAUD BY THE BENEFICIARY.
   7.  THE COURT ON ITS OWN, MAY INQUIRE INTO THE CIRCUMSTANCES SURROUND-
 ING THE EXECUTION OF, AND THE CONSIDERATION FOR, THE  WRITTEN  AGREEMENT
 FOR  PURPOSES  OF  DETERMINING  WHETHER THE REQUIREMENTS OF THIS SECTION
 HAVE BEEN SATISFIED.
   § 2. This act shall take effect immediately.