Requires principals to make a good faith effort to identify and notify co-trustees and co-beneficiaries of the signing of a power of attorney including the identity of the agent where the agent is not a co-trustee or co-beneficiary.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7708A
SPONSOR: Zebrowski TITLE OF BILL:
An act to amend the general obligations law, in relation to requiring
principals and beneficiaries to notify co-trustees and co-beneficiaries
of the signing of a power of attorney
PURPOSE:
To provide more transparency in certain financial matters.
SUMMARY OF PROVISIONS:
When a principal who is a trustee of a trust, signs a power of attorney
which allows the agent to affect such trust and the agent is not a
co-trustee of such trust, the principal shall notify in writing all
other co-trustees of the signing of a power of attorney and identify the
person assigned as the principal's agent. When a principal who is a
beneficiary of a trust, signs a power of attorney and the agent is not a
co-beneficiary of such trust, the principal shall notify in writing all.
other co-beneficiaries of the signing of a power of attorney and identi-
fy the person assigned as the principal's agent.
JUSTIFICATION:
This bill will protect trustees and/or beneficiaries in particular
financial matters where said trustee/beneficiary is a co-trustee and/or
co-beneficiary. In instances where you share an account/trust/etc. with
another trustee and/or beneficiary, the other trustee/beneficiary could
create a power of attorney with a non-party. Without any notice, that
non-party could then perhaps raid the trust or financial agreement, thus
taking all funds. This bill would require notice to all trustees and/or
beneficiaries when one member of the financial agreement enters into a
power of attorney.
LEGISLATIVE HISTORY:
2021-2022: A4601, Vetoed memo 111
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the thirteenth day after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
7708--A
2023-2024 Regular Sessions
IN ASSEMBLY
June 6, 2023
___________
Introduced by M. of A. ZEBROWSKI -- read once and referred to the
Committee on Judiciary -- recommitted to the Committee on Judiciary in
accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the general obligations law, in relation to requiring
principals and beneficiaries to notify co-trustees and co-beneficiar-
ies of the signing of a power of attorney
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general obligations law is amended by adding a new
2 section 5-1515 to read as follows:
3 § 5-1515. Duty to notify other trustees and beneficiaries. 1. When a
4 principal, who is a trustee of a trust, signs a power of attorney which
5 allows the agent to affect such trust and the agent is not a co-trustee
6 of such trust, the principal shall make a good faith effort to identify
7 and notify in writing all other co-trustees of the signing of a power of
8 attorney and identify the person assigned as the principal's agent.
9 2. When a principal, who is a beneficiary of a trust, signs a power of
10 attorney and the agent is not a co-beneficiary of such trust, the prin-
11 cipal shall notify in writing all other co-beneficiaries of the signing
12 of a power of attorney and identify the person assigned as the princi-
13 pal's agent. If the principal cannot identify or contact a co-benefici-
14 ary after good faith efforts were made, the principal must attest to the
15 efforts made to identify and/or contact co-beneficiaries.
16 § 2. This act shall take effect on the thirtieth day after it shall
17 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06926-04-3
