S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8300
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 12, 2025
                                ___________
 
 Introduced  by  M.  of  A.  McMAHON  -- (at request of the Unified Court
   System) -- read once and referred to the Committee on Judiciary
 
 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 to repeal 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 601 of the laws of 2019, is amended
 to read as follows:
   3.  Unless  the will OR LIFETIME TRUST INSTRUMENT otherwise explicitly
 provides, the annual commissions allowed by [subdivision  two  of]  this
 section  shall  be payable one-third from the income of the trust [or of
 the property subject to the power in  trust]  and  two-thirds  from  the
 principal  of  the  trust  [or from the property subject to the power in
 trust]. However, in the case of a trust whose definition  of  income  is
 governed  by  SECTION 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 ANNUITY OR unitrust [amount] AMOUNTS and shall
 not be payable out of such ANNUITY OR 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, as amended by chapter 601 of  the  laws
 of 2019, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09812-01-5
              

 A. 8300                             2
 
 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.
   § 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 amended by chapter 601 of the laws of 2019, is amended  to  read
 as follows:
   12.  If a trustee of a trust [or donee of a power in trust] is author-
 ized 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 [or to the principal of the  property  subject
 to  the  power  in  trust] shall be deemed a separate trust [or separate
 fund subject to the power in trust] for purposes of this subdivision and
 the trustee [or donee of the  power  in  trust]  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 601 of the laws of 2019, 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 [or property
 subject to the power in trust] and two-thirds from the principal of  the
 trust  [or property subject to the power in trust]. However, in the case
 of a trust whose definition of income is governed by section  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, as amended by chapter 601 of the laws
 of 2019, 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
 A. 8300                             3
 
 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.
   §  7.  Paragraphs  (a) and (b) of subdivision 3 of section 2312 of the
 surrogate's court procedure act, as amended by chapter 601 of  the  laws
 of 2019, 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, EXCEPT AS
 PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, shall be entitled 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.
   (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 on the sixtieth day after it shall
 have become a law 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 commis-
 sions under the law in effect prior to such effective date until  Decem-
 ber 31 of the year this act takes effect.