Includes marketable securities within the list of items considered family benefit exemptions and not included as assets of the estate.
TITLE OF BILL: An act to amend the estates, powers and trusts law, in relation to exemptions for the benefit of the family
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.
Section 5-3.1 of the Estates, Powers and Trusts Law provides that, where a person dies leaving a surviving spouse or children under 21, certain property belonging to such decedent must be exempted from his or her estate assets and, instead, vest in and be set off to the surviving spouse or, if there be none, to his or her children under 21. This exempted property includes money up to $25,000 (subject to certain limitations). This statute was recently updated and modernized for the first time since 1992. L. 2010, c.437. Chapter 437 amended section 5-3.1 by expanding some of the articles of personal property to be exempted, deleting some of the items that were previously exempted and increasing the value of all of the items referenced therein.
However, since enactment, a question has been raised regarding the type of assets that may be used in computing the $25,000 set off in paragraph six. When the changes to this paragraph were made, the phrase "or other personal property" was eliminated and language to include cash and cash equivalents was added. The purpose of the revision was to give the surviving spouse or children the means to pay their immediate expenses during the settlement of the estate. The sponsor's memorandum clearly stated that: "Liquid assets, rather than personal property, is the intent of this subsection." However, the eliminated term "or other personal property" was construed to include shares of stock owned by the decedent. To clarify that stock is still included in the class of assets comprising paragraph six, this measure adds the language "marketable securities" to the other assets listed in this section. It also proposes a simple clarifying technical amendment to paragraph (b).
This measure would take effect immediately, but shall be deemed to have been in full force on and after January 1, 2011.
2011 LEGISLATIVE HISTORY: OCA 2011-54 Assembly 8344 (M. of A. Weinstein) [Passed]
STATE OF NEW YORK ________________________________________________________________________ 6657 IN SENATE March 8, 2012 ___________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 the estates, powers and trusts law, in relation to exemptions for the benefit of the family THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph 6 of paragraph (a) of section 5-3.1 of the estates, powers and trusts law, as amended by chapter 437 of the laws of 2010, is amended to read as follows: (6) Money including but not limited to cash, checking, savings and money market accounts, certificates of deposit or equivalents thereof, AND MARKETABLE SECURITIES, not exceeding in value twenty-five thousand dollars, reduced by the excess value, if any, of acquired items referred to in subparagraphs (1), (2), (3) and (5) of this paragraph. However, where assets are insufficient to pay the reasonable funeral expenses of the decedent, the personal representative must first apply such money to defray any deficiency in such expenses. S 2. Paragraph (b) of section 5-3.1 of the estates, powers and trusts law, as amended by chapter 595 of the laws of 1992, is amended to read as follows: (b) No allowance shall be made in money or other property if the items of property described in subparagraph (1), (2), (3) or
[(4)](5) OF PARAGRAPH (A) are not in existence when the decedent dies. S 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2011.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13070-04-2