Bill S4090-2011

Relates to the authority of the court to direct establishment accounts for the benefit of children in certain types of cases

Relates to the authority of the court to direct establishment of a trust or other designated account for the benefit of children in matrimonial, child support and paternity cases.

Details

Actions

  • Mar 12, 2012: referred to judiciary
  • Mar 12, 2012: DELIVERED TO ASSEMBLY
  • Mar 12, 2012: PASSED SENATE
  • Mar 7, 2012: ADVANCED TO THIRD READING
  • Mar 6, 2012: 2ND REPORT CAL.
  • Mar 5, 2012: 1ST REPORT CAL.285
  • Jan 4, 2012: REFERRED TO CHILDREN AND FAMILIES
  • Jan 4, 2012: returned to senate
  • Jan 4, 2012: died in assembly
  • Apr 11, 2011: referred to judiciary
  • Apr 11, 2011: DELIVERED TO ASSEMBLY
  • Apr 11, 2011: PASSED SENATE
  • Apr 6, 2011: ADVANCED TO THIRD READING
  • Apr 5, 2011: 2ND REPORT CAL.
  • Apr 4, 2011: 1ST REPORT CAL.301
  • Mar 17, 2011: REFERRED TO CHILDREN AND FAMILIES

Meetings

Votes

VOTE: COMMITTEE VOTE: - Children and Families - Apr 4, 2011
Ayes (4): Saland, Young, Savino, Montgomery
Ayes W/R (1): Johnson
Absent (1): Duane
VOTE: COMMITTEE VOTE: - Children and Families - Mar 5, 2012
Ayes (6): Johnson, Saland, Young, Savino, Montgomery, Duane

Memo

BILL NUMBER:S4090

TITLE OF BILL: An act to amend the domestic relations law and the family court act, in relation to the authority of the court to direct establishment of a trust or other designated account for the benefit of children in matrimonial, child support and paternity cases

This is one in a series of measures being introduced at the request of the Chief Administrative Judge upon the recommendation of her Family Court Advisory and Rules Committee.

The Child Support Standards Act provides helpful parameters for Family and Supreme Courts to utilize to ensure that parents are assessed an appropriate proportion of their incomes for the support of their children, premised on the assumption that the incomes are relatively constant. However, the Act provides no mechanism for courts to address the not-infrequent situation where one parent receives an economic windfall or exceptionally high income during a short period of time, an income not likely to remain at that level in the future. Examples include professional athletes or performers, individuals who sell a successful business or those who win significant awards. Without a means of preserving a portion of the windfall income for children's future needs, courts are hampered in their ability to provide just and appropriate child support orders that incorporate future costs, such as college expenses. Accordingly, this measure would authorize courts to direct that children be permitted to benefit from such windfalls through establishment of designated accounts, such as trust funds or annuities, that would provide them with future streams of payments, thus ensuring adequate support even after a non-custodial parent's income has decreased.

While explicitly not diminishing the non-custodial parent's basic support obligation and in no way superseding the issuance of orders for periodic payments pursuant to the Child Support Standards Act, this measure would authorize Supreme or Family Court, under such terms and conditions as it deems appropriate, to direct a noncustodial parent to pay an amount to establish a security account designated for the benefit of the child, including, but not limited to, a trust account or annuity, to meet the child's future needs. This measure would require the Court to specify the parameters of the account, including, as applicable, the particular purposes of the account; the person or entity that will act as trustee, custodian or administrator of the funds in the account; the person or entity that will act as the trustee, custodian or administrator of the funds in the account in the event of the death of the designated trustee, custodian or administrator; the disposition of the funds after the emancipation or death of the child or children named as beneficiaries; the particular structure that will fulfill the purposes of the account; and any further provisions necessary to accomplish the purpose of the account.

This measure, which would have no fiscal impact upon the State, would take effect immediately.

2011 LEGISLATIVE HISTORY: None. New proposal.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4090 2011-2012 Regular Sessions IN SENATE March 17, 2011 ___________
Introduced by Sen. SAVINO -- (at request of the Office of Court Adminis- tration) -- read twice and ordered printed, and when printed to be committed to the Committee on Children and Families AN ACT to amend the domestic relations law and the family court act, in relation to the authority of the court to direct establishment of a trust or other designated account for the benefit of children in matrimonial, child support and paternity cases THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (c) of subdivision 1-b of section 240 of the domestic relations law is amended by adding a new subparagraph 8 to read as follows: (8) IN ADDITION TO THE BASIC CHILD SUPPORT OBLIGATION ORDERED UNDER THIS SUBDIVISION, THE COURT MAY, IN ITS DISCRETION, ORDER THE RESPONDENT TO PAY AN AMOUNT TO ESTABLISH A SECURITY ACCOUNT DESIGNATED FOR THE BENEFIT OF THE CHILD, INCLUDING, BUT NOT LIMITED TO, A TRUST ACCOUNT OR ANNUITY TO MEET THE CHILD'S FUTURE NEEDS. THE COURT MAY DIRECT THE ESTABLISHMENT OF SUCH AN ACCOUNT UNDER SUCH TERMS AND CONDITIONS AS IT DEEMS APPROPRIATE. THE COURT SHALL SET FORTH, AS APPLICABLE: THE SPECIF- IC PURPOSES OF THE ACCOUNT; THE PERSON OR ENTITY THAT WILL ACT AS TRUS- TEE, CUSTODIAN OR ADMINISTRATOR OF THE FUNDS IN THE ACCOUNT; THE PERSON OR ENTITY THAT WILL ACT AS THE TRUSTEE, CUSTODIAN OR ADMINISTRATOR OF THE FUNDS IN THE ACCOUNT IN THE EVENT OF THE DEATH OF THE DESIGNATED TRUSTEE, CUSTODIAN OR ADMINISTRATOR; THE DISPOSITION OF THE FUNDS AFTER THE EMANCIPATION OR DEATH OF THE CHILD OR CHILDREN NAMED AS BENEFICI- ARIES; THE PARTICULAR STRUCTURE THAT WILL FULFILL THE PURPOSES OF THE ACCOUNT; AND ANY FURTHER PROVISIONS NECESSARY TO ACCOMPLISH THE PURPOSE OF THE ACCOUNT. THE ESTABLISHMENT OF SUCH AN ACCOUNT SHALL NOT DIMINISH ANY CURRENT CHILD SUPPORT OBLIGATIONS. S 2. Paragraph (c) of subdivision 1 of section 413 of the family court act is amended by adding a new subparagraph 8 to read as follows:
(8) IN ADDITION TO THE BASIC CHILD SUPPORT OBLIGATION ORDERED UNDER THIS SUBDIVISION, THE COURT MAY, IN ITS DISCRETION, ORDER THE NON-CUSTO- DIAL PARENT TO PAY AN AMOUNT TO ESTABLISH A SECURITY ACCOUNT DESIGNATED FOR THE BENEFIT OF THE CHILD, INCLUDING, BUT NOT LIMITED TO, A TRUST ACCOUNT OR ANNUITY TO MEET THE CHILD'S FUTURE NEEDS. THE COURT MAY DIRECT THE ESTABLISHMENT OF AN ACCOUNT UNDER SUCH TERMS AND CONDITIONS AS IT DEEMS APPROPRIATE. THE COURT SHALL SET FORTH, AS APPLICABLE: THE SPECIFIC PURPOSES OF THE ACCOUNT; THE PERSON OR ENTITY THAT WILL ACT AS TRUSTEE, CUSTODIAN OR ADMINISTRATOR OF THE FUNDS IN THE ACCOUNT; THE PERSON OR ENTITY THAT WILL ACT AS THE TRUSTEE, CUSTODIAN OR ADMINISTRA- TOR OF THE FUNDS IN THE ACCOUNT IN THE EVENT OF THE DEATH OF THE DESIG- NATED TRUSTEE, CUSTODIAN OR ADMINISTRATOR; THE DISPOSITION OF THE FUNDS AFTER THE EMANCIPATION OR DEATH OF THE CHILD OR CHILDREN NAMED AS BENE- FICIARIES; THE PARTICULAR STRUCTURE THAT WILL FULFILL THE PURPOSES OF THE ACCOUNT; AND ANY FURTHER PROVISIONS NECESSARY TO ACCOMPLISH THE PURPOSE OF THE ACCOUNT. THE ESTABLISHMENT OF SUCH AN ACCOUNT SHALL NOT DIMINISH ANY CURRENT CHILD SUPPORT OBLIGATIONS. S 3. This act shall take effect immediately.

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