S3789-2013 - NY Senate Open Legislation - 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.

Sponsor: BONACIC
Law Section: Estates, Powers and Trusts / Law: Amd S3, Chap 451 of 2011

S3789-2013 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

S3789-2013 Meetings

Judiciary: Apr 16, 2013

S3789-2013 Calendars

Active List: May 1, 2013 , Floor Calendar: Apr 17, 2013 , Floor Calendar: Apr 22, 2013 , Floor Calendar: Apr 23, 2013 , Floor Calendar: Apr 24, 2013 , Floor Calendar: Apr 29, 2013 , Floor Calendar: Apr 30, 2013 , Floor Calendar: May 1, 2013

S3789-2013 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

S3789-2013 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.

S3789-2013 Text

 S T A T E   O F   N E W   Y O R K
 
                                          3789
 2013-2014 Regular Sessions
 I N  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.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03052-01-3

S3789-2013: Relates to the effectiveness of the exercise of a power of appointment and an authorized trustee's authority to invade trust principal