Makes technical correction to provisions granting jurisdiction to surrogate's court over actions taken pursuant to the uniform transfers to minors act.
TITLE OF BILL: An act to amend the surrogate's court procedure act, in relation to custodians acting under the uniform transfers to minors act
To amend the Surrogate's Court Procedure Act section 1724 in order to correct the section of the Estates Powers and Trusts Law being referred to under current law.
SUMMARY OF PROVISIONS OF BILL:
Amends Surrogate's Court Procedure Act section 1724 by replacing the reference to the repealed sections of the Estates Powers and Trusts Law (sections 7-4.1 to 7-4.9) which referred to the Uniform Gifts to Minors Act with a reference to the sections of the Estates Powers and Trusts Law that contain the Uniform Transfers to Minors Act (sections 7-6.1 to 7-6.26).
In its current form, the Surrogate's Court Procedure Act ("SCPA") section 1724 specifically references the Uniform Gifts to Minors Act ("UGMA") sections of the Estates Powers and Trusts Law ("EPTL"). See, repealed sections EPTL § 7-4.1 to 7-4.9. UGMA was repealed (1997 N.Y. Laws 535) and replaced by Uniform Transfers to Minors Act ("UTMA") (1996 N.Y. Laws 304). See, EPTL sections 7-6.1 to 7-6.26. When UTMA was first enacted, UGMA was left intact because UTMA directed that UGMA would continue to apply to transfers made before December 31, 1996. However, that overlap proved to be unwieldy for practitioners. Therefore, UGMA was repealed the following year and UTMA was made applicable to existing UGMA accounts. See, EPTL 7-6.22. Despite this change; SCPA section 1724 still remains with the reference to the now repealed sections of the EPTL.
Arguably, the purpose of SCPA section 1724 is largely superseded by EPTL section 7-6.2 which details and defines the scope and jurisdiction of UTMA. However, it is preferable not to repeal SCPA section 1724.
As a general (and historical) matter, SCPA contains most of the procedural and jurisdictional provisions of estate law. Article 17 of the SCPA contains procedural statutory authority related to guardians and custodians. Practitioners searching for the jurisdictional authority for UTMA may begin their search with SCPA. Regardless, it is confusing and incorrect to have a statute which references a now repealed section of the EPTL. Therefore, the erroneous reference to repealed sections of the EPTL in SCPA section 1724 is being corrected by this proposed legislation.
New Bill, 2014.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
STATE OF NEW YORK ________________________________________________________________________ 7137 IN SENATE April 30, 2014 ___________Introduced by Sen. BONACIC -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the surrogate's court procedure act, in relation to custodians acting under the uniform transfers to minors act THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1724 of the surrogate's court procedure act, as amended by chapter 685 of the laws of 1967 and as renumbered by chapter 311 of the laws of 1971, is amended to read as follows: S 1724. Custodians An infant or a custodian acting under
[EPTL 7-4.1 to 7-4.9 inclusive]PART SIX OF ARTICLE SEVEN OF THE ESTATES, POWERS AND TRUSTS LAW shall be subject to the jurisdiction of the court in accordance with the provisions of such law. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14328-01-4