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A09857 Summary:

A09857 Actions:

A09857 Floor Votes:

A09857 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9857--C
 
                   IN ASSEMBLY
 
                                    February 3, 2010
                                       ___________
 
        Introduced  by  M.  of A. CARROZZA, WEINSTEIN, LAVINE, JEFFRIES, TITONE,
          McKEVITT -- read once and referred to the Committee  on  Judiciary  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- again reported  from  said  committee
          with  amendments, ordered reprinted as amended and recommitted to said

          committee -- again  reported  from  said  committee  with  amendments,
          ordered reprinted as amended and recommitted to said committee
 
        AN  ACT  to  amend  the  estates,  powers and trusts law, in relation to
          certain formula clauses to be construed to refer to the federal estate
          and generation-skipping transfer tax laws  applicable  to  estates  of
          decedents dying after December 31, 2009 and before January 1, 2011
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Sections 2-1.13 and  2-1.14  of  the  estates,  powers  and
     2  trusts  law  are renumbered sections 2-1.14 and 2-1.15 and a new section
     3  2-1.13 is added to read as follows:
     4  § 2-1.13 Certain formula clauses to be construed to refer to the federal

     5             estate and generation-skipping transfer tax  laws  applicable
     6             to  estates  of  decedents dying after December thirty-first,
     7             two thousand nine and  before  January  first,  two  thousand
     8             eleven
     9    (a)(1)  If  by reason of the death of a decedent property passes or is
    10  acquired under a beneficiary designation, in the case of a will or trust
    11  of a decedent who dies after December thirty-first,  two  thousand  nine
    12  and  before  January first, two thousand eleven, that contains a bequest
    13  or other disposition based upon the amount of property that can be shel-
    14  tered from federal estate tax by  referring  to  the  "unified  credit",
    15  "estate  tax  exemption",  "applicable  exclusion  amount",  "applicable

    16  exemption amount",  "applicable  credit  amount",  "marital  deduction",
    17  "maximum  marital deduction", "unlimited marital deduction", "charitable
    18  deduction", "maximum charitable deduction" or similar words  or  phrases
    19  relating  to  the  federal  estate  tax,  or that measures a share of an
    20  estate or trust based on the amount that can pass free of federal estate
    21  taxes, or that is otherwise based on  a  similar  provision  of  federal
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15717-11-0
        A. 9857--C                          2
 

     1  estate  tax  shall  be  deemed to refer to the federal estate tax law as
     2  applied with respect to decedents dying on  December  thirty-first,  two
     3  thousand nine.
     4    (2)  If  by  reason  of  the death of a decedent property passes or is
     5  acquired under a beneficiary designation, in the case of a will or trust
     6  of a decedent who dies after December thirty-first,  two  thousand  nine
     7  and  before  January first, two thousand eleven, that contains a bequest
     8  or other disposition based upon the amount of property that can be shel-
     9  tered from federal generation-skipping transfer tax by referring to  the
    10  "generation-skipping  transfer tax exemption", "GST exemption", "genera-
    11  tion-skipping transfer tax", "GST tax" or similar words or phrases  that

    12  measures a share of an estate or trust based on the amount that can pass
    13  free of federal generation-skipping transfer taxes, or that is otherwise
    14  based on a similar provision of federal generation-skipping transfer tax
    15  law;  or  if  such  bequest  would  have  passed as a "direct skip" to a
    16  "natural person" within the meaning of such terms under  chapter  13  of
    17  the  Internal  Revenue Code of 1986 if the decedent had died on December
    18  thirty-first, two thousand nine, then such will or trust shall be deemed
    19  to refer to the federal generation-skipping transfer tax law  in  effect
    20  on December thirty-first, two thousand nine.
    21    (3) This paragraph shall not apply to a will or trust that:

    22    (A)  is  executed or amended after December thirty-first, two thousand
    23  nine; or
    24    (B) Manifests an intent that a contrary rule shall apply if the  dece-
    25  dent  dies on a date on which there is no then applicable federal estate
    26  tax or generation-skipping transfer tax.
    27    (4) The reference to January first, two thousand eleven in this  para-
    28  graph shall, if a federal estate tax or generation-skipping transfer tax
    29  becomes  applicable  before  that date, be construed to refer instead to
    30  the first date on which the federal estate  tax  or  generation-skipping
    31  transfer tax becomes applicable.
    32    (b)  The  executor, trustee or other interested person under a will or

    33  trust referred to in paragraph (a) of this section may bring a  proceed-
    34  ing  to  determine  whether  the  decedent  intended that the references
    35  described in such paragraph be construed with respect to the law  as  it
    36  existed  on  the  decedent's  date  of  death,  without  regard  to  the
    37  provisions of paragraph (a) of this section.  In  any  such  proceeding,
    38  extrinsic  evidence  may be admitted to establish the decedent's intent.
    39  Such proceeding must be commenced within  twelve  months  following  the
    40  death of the testator or grantor, and not at any time thereafter.
    41    §  2.  This  act shall take effect immediately  and shall be deemed to
    42  have been in full force and effect on and after January 1, 2010, and the

    43  provisions of this act shall apply to wills and trusts of decedents  who
    44  die  after December 31, 2009 and before January 1, 2011, or such earlier
    45  date that a federal  estate  tax  or  generation-skipping  transfer  tax
    46  becomes applicable.