Bill S3789-2013

Relates to the effectiveness of the exercise of a power of appointment and an authorized trustee's authority to invade trust principal

Relates to the effectiveness of exercise of a power of appointment and an authorized trustee's authority to invade trust principal.

Details

Actions

  • May 1, 2013: SUBSTITUTED BY A4061
  • Apr 22, 2013: ADVANCED TO THIRD READING
  • Apr 17, 2013: 2ND REPORT CAL.
  • Apr 16, 2013: 1ST REPORT CAL.300
  • Feb 15, 2013: REFERRED TO JUDICIARY

Votes

VOTE: COMMITTEE VOTE: - Judiciary - Apr 16, 2013
Ayes (20): Bonacic, DeFrancisco, Flanagan, Fuschillo, Lanza, LaValle, Little, Nozzolio, O'Mara, Savino, Ranzenhofer, Zeldin, Sampson, Hassell-Thompson, Breslin, Dilan, Espaillat, Perkins, Stavisky, Hoylman
Ayes W/R (1): Adams
Excused (1): Hannon

Memo

BILL NUMBER:S3789

TITLE OF BILL: An act to amend chapter 451 of the laws of 2011, amending the estates, powers and trusts law relating to the exercise of a power of appointment and an authorized trustee's authority to invade trust principal, in relation to the effectiveness thereof

This is one in a series of measures being introduced at the request of the Chief Administrative Judge upon the recommendation of her Surrogate's Court Advisory Committee. This measure would make one technical correction to the effective date of chapter 451 of the Laws of 2011, which substantially altered New York's so-called "decanting statute" - EPTL 10-6.6, enacted in 1992. Section 10-6.6(b) codifies decisional law that permitted a trustee who has authority to invade the trust principal to exercise that power by creating new trusts. This effectively allows the rewriting of an irrevocable trust by permitting trust assets to be "appointed" or "decanted" to another trust. Chapter 451 enacted provisions to make the statute more flexible and more explicit with respect to the procedure required to effect a decanting.

The effective date provisions of L.2011, c. 451 are as fellows:

"This act shall take effect immediately and shall apply to trusts whether created prior to or after such effective date. "(emphasis added.)

The effective date of the new statute was August 17, 2011 and the question has arisen whether the statute applies to a trust created on that date. To clarify this issue it is proposed that there be a chapter amendment to L. 2011, c. 451 enacting the following effective date provisions:

This act shall take effect immediately and shall apply to trusts whether created prior to, on, or after such effective date.

Legislative History: None. New proposal.


Text

STATE OF NEW YORK ________________________________________________________________________ 3789 2013-2014 Regular Sessions IN SENATE February 15, 2013 ___________
Introduced by Sen. BONACIC -- (at request of the Office of Court Admin- istration) -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend chapter 451 of the laws of 2011, amending the estates, powers and trusts law relating to the exercise of a power of appoint- ment and an authorized trustee's authority to invade trust principal, in relation to the effectiveness thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 3 of chapter 451 of the laws of 2011 amending the estates, powers and trusts law relating to the exercise of a power of appointment and an authorized trustee's authority to invade trust prin- cipal is amended to read as follows: S 3. This act shall take effect immediately and shall apply to trusts whether created prior to, ON, or after such effective date. S 2. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus