Relates to providing a presumption that credit shelter bequests be construed to set aside the maximum amount that may be shielded from both federal and state estate taxes.
STATE OF NEW YORK
________________________________________________________________________
1726
2023-2024 Regular Sessions
IN ASSEMBLY
January 20, 2023
___________
Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
tee on Judiciary
AN ACT to amend the estates, powers and trusts law, in relation to
providing a presumption that credit shelter bequests be construed to
set aside the maximum amount that may be shielded from both federal
and state estate taxes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The estates, powers and trusts law is amended by adding a
2 new section 2-1.12-a to read as follows:
3 § 2-1.12-a Application of formula clause
4 (a) If: (i) a decedent who is a resident of New York state dies after
5 March thirty-first, two thousand twenty-three; and
6 (ii) by reason of the death of such decedent, property passes or is
7 acquired from such decedent under a will, a trust or a beneficiary
8 designation which contains a formula providing, in sum or substance, for
9 a bequest or other disposition of the maximum amount of property that
10 can be sheltered from federal estate tax by reason of available credits
11 against such tax; then, unless the governing instrument specifically
12 provides otherwise by referring to this section, such formula shall be
13 deemed to refer to the maximum amount of property, if any, that can be
14 sheltered from both federal estate tax and New York state estate tax by
15 reason of the applicable credit amount allowable against each of the
16 federal estate tax liability and the New York state estate tax liabil-
17 ity.
18 (b) Notwithstanding paragraph (a) of this section, nothing in this
19 section shall be deemed to preclude a proceeding from being brought that
20 seeks an order: (i) construing the decedent's intent concerning the
21 effect of a formula bequest or other disposition contained in a will,
22 trust or beneficiary designation, or
23 (ii) overriding the presumption set forth in subparagraph (ii) of
24 paragraph (a) of this section.
25 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00907-01-3
