Senate Bill S10469

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10469
 
                             I N  S E N A T E
 
                               May 15, 2026
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN  ACT  to  amend  the  surrogate's court procedure act, in relation to
   certain assignments 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 1425 to read as follows:
 § 1425. ASSIGNMENT TO A TRANSFEREE FOR VALUE
   1. THIS SECTION APPLIES WHEN AN ASSIGNMENT FROM A DECEDENT'S ESTATE IS
 MADE TO A TRANSFEREE FOR VALUE WHO ACQUIRES ANY INTEREST OF A  BENEFICI-
 ARY IN EXCHANGE FOR CASH OR OTHER CONSIDERATION.
   2.  FOR  PURPOSES  OF THIS SECTION, A TRANSFEREE FOR VALUE IS 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.
   4.  A  WRITTEN AGREEMENT IS EFFECTIVE ONLY IF ALL THE FOLLOWING CONDI-
 TIONS 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15828-01-6
 S. 10469                            2
 
 NOT  COMMENCED, NOT LATER THAN FORTY-FIVE DAYS FOLLOWING THE ISSUANCE BY
 THE SURROGATE'S COURT OF FIDUCIARY LETTERS. PRIOR TO FILING  OR  SERVING
 SUCH  WRITTEN  AGREEMENT,  THE  TRANSFEREE  FOR  VALUE  SHALL REDACT ANY
 PERSONALLY  IDENTIFYING  INFORMATION  OF THE BENEFICIARY, OTHER THAN THE
 NAME AND ADDRESS OF  THE  BENEFICIARY,  AND  ANY  FINANCIAL  INFORMATION
 PROVIDED  BY THE BENEFICIARY TO THE TRANSFEREE FOR VALUE ON THE APPLICA-
 TION 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 SURROGATE'S 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 SURROGATE'S COURT OF FIDU-
 CIARY 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 PARAGRAPH SHALL NOT APPLY TO COSTS, FEES, OR DAMAGES ARIS-
 ING 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, THAT PROVISION  SHALL
 BE NULL AND VOID:
   (A)  A PROVISION HOLDING HARMLESS THE TRANSFEREE FOR VALUE, OTHER THAN
 FOR LIABILITY ARISING OUT OF FRAUD BY THE BENEFICIARY;
   (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;
 S. 10469                            3
 
   (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; OR
   (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 SURROGATE'S COURT ON ITS OWN,  MAY  INQUIRE  INTO  THE  CIRCUM-
 STANCES  SURROUNDING  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.