A2004-2011 Actions

• Jan 4, 2012: referred to judiciary
• Jan 12, 2011: referred to judiciary

A2004-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         2004
 2011-2012 Regular Sessions
 I N  ASSEMBLY
 January 12, 2011
 
 Introduced by M. of A. WEPRIN, COLTON, ORTIZ -- Multi-Sponsored by -- M.
 of  A.  BRENNAN,  TOWNS,  WEISENBERG  -- read once and referred to the
 Committee on Judiciary
 

AN ACT to amend the estates, powers and trusts law and the  civil  prac
 tice  law  and  rules,  in relation to clarifying and declaring as the
 existing law of the state of New York the provisions of rules relating
 to the lapse of a power of withdrawal over the income or principal  of
 a trust
 

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

 

Section 1. Paragraph (a) of section 7-3.1 of the estates,  powers  and
 trusts law, as amended by chapter 108 of the laws of 1987, is amended to
 read as follows:

 (a)  A  disposition  in  trust  for  the use of the creator is void as
 against the existing or subsequent creditors of the creator. NO INDIVID
 UAL SHALL BE TREATED FOR PURPOSES OF  THIS  SECTION  AS  HAVING  MADE  A
 DISPOSITION IN TRUST FOR THE USE OF THAT INDIVIDUAL BY REASON OF A LAPSE
 OF A POWER OF WITHDRAWAL OVER THE INCOME OR CORPUS OF A TRUST CREATED BY
 ANOTHER PERSON.
 

S 2. Paragraph 1 of subdivision (c) of section 5205 of the civil prac
 tice  law  and  rules,  as amended by chapter 93 of the laws of 1995, is
 amended to read as follows:

 1. Except as provided in paragraphs four and five of this subdivision,
 all property while held in trust for a judgment debtor, where the  trust
 has  been created by, or the fund so held in trust has proceeded from, a
 person other than the judgment debtor, is exempt from application to the
 satisfaction of a money judgment. FOR PURPOSES OF THIS SECTION, A  JUDG
 MENT  DEBTOR  SHALL  NOT  BE  TREATED  AS CREATING OR FUNDING A TRUST BY
 REASON OF THE LAPSE OF A POWER OF WITHDRAWAL OVER THE INCOME OR  PRINCI
 PAL  OF A TRUST CREATED AND FUNDED BY A PERSON OR PERSONS OTHER THAN THE
 JUDGMENT DEBTOR.
 

S 3. This act shall take effect immediately and shall  be  enforceable
 as to all trusts created under New York law, regardless of when created,
 as it is declaratory of existing New York law.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05088-01-1

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