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A07062 Summary:

BILL NO    A07062 

SAME AS    SAME AS S04272

SPONSOR    Weinstein (MS)

COSPNSR    Braunstein

MLTSPNSR   

Amd SS715 & 716, SCPA

Relates to settlement of account by a resigning fiduciary; requires the
petition show the facts upon which an application to resign is founded.
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A07062 Actions:

BILL NO    A07062 

04/30/2013 referred to judiciary
05/07/2013 reported 
05/09/2013 advanced to third reading cal.338
05/23/2013 passed assembly
05/23/2013 delivered to senate
05/23/2013 REFERRED TO JUDICIARY
06/11/2013 SUBSTITUTED FOR S4272
06/11/2013 3RD READING CAL.1017
06/11/2013 PASSED SENATE
06/11/2013 RETURNED TO ASSEMBLY
11/01/2013 delivered to governor
11/13/2013 signed chap.483
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A07062 Votes:

A07062 05/23/2013 130/0
AbbateYColtonYGarbariYKearnsYMillmanYRiveraERStevensAB
AbinantYCookYGibsonERKellnerYMontesaYRobertsYStirpeY
ArroyoYCorwinYGiglioYKimYMorelleYRobinsoYSweeneyY
AubryYCrespoERGjonajYKolbYMosleyYRodriguERTediscoY
BarclayYCrouchYGlickYLalorYMoyaYRosaYTenneyER
BarrettYCurranYGoldfedERLavineYNojayYRosenthYThieleY
BarronYCusickYGoodellYLentolYNolanYRozicYTitoneY
BenedetYCymbrowYGottfriYLiftonYOaksYRussellYTitusY
BlankenYDenDekkYGrafYLopezYO'DonneYRyanYWalterY
BorelliYDinowitERGuntherYLupardoYOrtizYSaladinYWeinsteER
BoylandERDiPietrYHawleyYLupinacEROtisYSantabaYWeisenbY
BraunstYDupreyYHeastieYMageeYPalmesaERScarborERWeprinY
BrennanYEnglebrYHennessYMagnareYPaulinERSchimelYWrightY
BrindisYEspinalYHevesiYMaiselYPeoplesYSchimmiYZebrowsY
BronsonYFahyYHikindERMalliotYPerryYSepulveYMr SpkrY
Brook-KYFarrellERHooperYMarkeyYPretlowYSimanowY
BuchwalYFinchYJacobsYMayerYQuartYSimotasY
ButlerYFitzpatYJaffeeYMcDonalYRaYSkartadY
CahillYFriendYJohnsYMcDonouYRabbittYSkoufisY
CamaraYGabryszYJordanYMcKevitYRaiaYSolagesY
CerettoYGalefYKatzYMcLaughYRamosYStecY
ClarkERGanttYKavanagYMillerYReilichYSteckY

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A07062 Memo:

BILL NUMBER:A7062

TITLE OF BILL:  An act to amend the surrogate's court procedure act,
in relation to the settlement of account by a resigning fiduciary

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.

Assuming there are no persons interested in an estate or trust who are
under a disability (see SCPA 103 (40)), a fiduciary may settle an
account by formal judicial process (e.g., judicial accounting) whether
voluntary or compulsory - or by the nonjudicial settlement by receipts
and releases, or by filing an instrument under SCPA 2202 and 2203
(which provide for the recording of instruments settling an account).*
Absent a provision otherwise in the governing instrument, subdivision
8 of section 315 of the SCPA provides that virtual representation
applies to the nonjudicial settlement of an account.

The procedure on an informal account is for the fiduciary to prepare
an account that is sent to the persons interested together with
receipts and releases. Following the return of the receipts and
releases, the fiduciary may distribute the estate or trust and then
close it. An agreement to informally settle a fiduciary's account will
constitute a full settlement discharging the fiduciary and binding the
parties provided: (1) all those who would be necessary parties to a
judicial accounting sign the agreement; (2) the fiduciary has made
full disclosure; and (3) all signatories are adult and competent.**

Today, the preferred method to settle an estate or trust is by an
informal account and receipts and releases executed by the persons
interested. The informal settlement of an account usually saves time
and money, and may also foster family harmony. In light of this shift
in practice, it is proposed that sections 715 and 716 of the SCPA be
amended to remove any requirement that a resigning fiduciary seek to
file a judicial account. This measure merely removes the requirements
and is not intended to usurp the Surrogate's authority to exercise his
or her discretion to direct the filing of a judicial account.

This act shall take effect immediately and shall apply to estates of
decedents dying on or after such date.

Legislative History:

None. New proposal.

* Groppe et. al., Harris 6th Edition: New York Estates: Probate,
Administration and Litigation, S 18:99 - 18:109.

** See, Matter of Goldstick, 177 AD2d 225 (1st Dept 1992); Warren's
Heaton on Surrogate's Practice S 94.02.
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A07062 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         7062

                              2013-2014 Regular Sessions

                                 I N  A S S E M B L Y

                                    April 30, 2013
                                      ___________

       Introduced  by  M.  of  A.  WEINSTEIN,  BRAUNSTEIN -- (at request of the
         Office of Court Administration) --  read  once  and  referred  to  the
         Committee on Judiciary

       AN  ACT to amend the surrogate's court procedure act, in relation to the
         settlement of account by a resigning fiduciary

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  Section  715  of  the  surrogate's court procedure act is
    2  amended to read as follows:
    3  S 715. Application by fiduciary for permission to resign
    4    A fiduciary may present to the court at any time  a  petition  praying
    5  that  he  OR  SHE  be  permitted  to  resign, that his OR HER letters be
    6  revoked and that he OR SHE be permitted to  [file  and  proceed  to  the
    7  judicial  settlement  of]  SETTLE  his  OR  HER  account  JUDICIALLY  OR
    8  INFORMALLY as such fiduciary [within a time to be fixed by  the  court],
    9  and  that  notice  of the application be given to the persons and in the
   10  manner directed by the court. The petition [must] SHALL show  the  facts
   11  upon which the application is founded.
   12    S 2. Section 716 of the surrogate's court procedure act, as amended by
   13  chapter 503 of the laws of 1980, is amended to read as follows:
   14  S 716. Proceedings thereupon
   15    If  it  shall  be  determined  that the petition should be granted, an
   16  intermediate order may be entered forthwith or at any  time  during  the
   17  pendency  of the proceeding, permitting the petitioner to resign, revok-
   18  ing his OR HER letters, or removing him OR HER, appointing a  successor,
   19  and  directing the resigning fiduciary to turn over all assets in his OR
   20  HER hands to his OR HER successor and [file] SETTLE his OR  HER  account
   21  [and  a petition for the judicial settlement thereof and proceed to have
   22  it judicially settled] JUDICIALLY OR INFORMALLY. The proceedings  there-
   23  upon,  whether  or not the letters of the petitioner be revoked or he OR
   24  SHE be removed, must be the same as upon a  petition  for  the  judicial

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09331-01-3
       A. 7062                             2

    1  settlement  of the petitioner's account, except that the successor fidu-
    2  ciary, if one shall have been appointed, shall be a necessary  party  to
    3  it.  Upon  the  resigning fiduciary fully accounting and paying over all
    4  money  which  is found to be due from him OR HER and delivering over all
    5  books, papers and other property in his OR  HER  hands  to  his  OR  HER
    6  successor,  or in such manner as the court directs, a decree may be made
    7  discharging him OR HER accordingly.
    8    S 3. This act shall take effect immediately and shall apply to estates
    9  of decedents dying on or after such date.
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