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S05513 Summary:

S05513 Actions:

S05513 Committee Votes:

S05513 Floor Votes:

S05513 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5513
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                       May 3, 2019
                                       ___________
 
        Introduced  by Sen. HOYLMAN -- (at request of the Office of Court Admin-
          istration) -- read twice and ordered printed, and when printed  to  be
          committed to the Committee on Judiciary
 
        AN  ACT  to  amend  the  estates,  powers and trusts law, in relation to
          testamentary disposition to trustee  under,  or  in  accordance  with,
          terms of existing inter vivos trust
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 3-3.7 of the estates, powers and trusts law,  para-
     2  graph (a) as amended by chapter 139 of the laws of 1997 and such section
     3  as  renumbered by chapter 472 of the laws of 1967, is amended to read as
     4  follows:
     5  § 3-3.7 Testamentary disposition to trustee under, or in accordance with
     6            terms of existing inter vivos trust
     7    (a) A testator [or testatrix] may by will dispose of or appoint all or
     8  any part of [his or her] such testator's estate to a trustee of a trust,
     9  the terms of which are evidenced by a written instrument executed by the
    10  testator [or testatrix], the testator  [or  testatrix]  and  some  other
    11  person,  or  some  other  person,  including a trust established for the
    12  receipt of the proceeds of an annuity or pure endowment contract, or  of
    13  a  thrift,  savings, pension, retirement, death benefit, stock bonus, or
    14  profit-sharing plan or system or a funded or unfunded life, group  life,
    15  industrial  life  or  accident  and health insurance trust (although the
    16  [settlor] person establishing such trust has reserved any or all  rights
    17  of  ownership of the insurance contracts), regardless of [the existence,
    18  size or character of the corpus of such insurance trust or other  trust]
    19  whether any assets have been transferred to the trust prior to the death
    20  of the testator; provided that [such] the trust instrument is identified
    21  in  the  will and is executed by the person establishing the trust prior
    22  to or contemporaneously with the execution of the will and, unless  such
    23  person is the sole trustee, by at least one trustee thereof prior to the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10069-01-9
        S. 5513                             2
 
     1  death  of  the testator, in the manner [provided for in 7-1.17, prior to
     2  or contemporaneously with the execution of  the  will,  and  such  trust
     3  instrument  is  identified  in  such  will] required by the laws of this
     4  state  for  the  recording  of a conveyance of real property or, in lieu
     5  thereof, in the presence of two witnesses who shall affix  their  signa-
     6  tures to the trust instrument.
     7    (b) The testamentary disposition or appointment is valid, even though:
     8    (1) The trust instrument is amendable or revocable, or both, provided,
     9  however,  that  the  disposition or appointment shall be given effect in
    10  accordance with the terms of the trust instrument, including  an  amend-
    11  ment  thereto,  as  they appear in writing on the date of the testator's
    12  death and, where the testator so directs, including  amendments  to  the
    13  trust  instrument  after  his or her death, if the instrument evidencing
    14  such amendment is executed  and  acknowledged  in  the  manner  [herein]
    15  provided  for  [executing  and  acknowledging  the  instrument  which it
    16  amends] in paragraph (b) of 7-1.17.
    17    (2) The right is reserved in such trust instrument (A) to exercise any
    18  power over any property transferred to or held in the trust  or  (B)  to
    19  direct  during  the  lifetime  of  the [settlor] person establishing the
    20  trust or any other person, the persons and organizations to whom  or  in
    21  whose behalf the income shall be paid or the principal distributed.
    22    (3) The trust instrument or any amendment thereto was not executed and
    23  attested in accordance with the formalities prescribed by 3-2.1.
    24    (c) The property so disposed of or appointed by will becomes a part of
    25  the  trust  to which it is given, and title thereto vests in the trustee
    26  to be administered and disposed of in accordance with the terms  of  the
    27  trust instrument.
    28    (d)  Any  disposition or appointment to the trustee made by a testator
    29  who died prior to the effective date of this  section,  which  would  be
    30  invalid  under  the applicable law of this state pre-existing the effec-
    31  tive date of this section, shall be construed to create  a  testamentary
    32  trust  under  and  in  accordance with the terms of the trust instrument
    33  which the testator  originally  intended  should  embrace  the  property
    34  disposed  of or appointed, as such terms appear in such trust instrument
    35  at the date of the testator's death.
    36    (e) A revocation or termination of the trust before the death  of  the
    37  testator  shall cause the disposition or appointment to fail, unless the
    38  testator has made an alternative disposition.
    39    § 2. This act shall take effect immediately and  shall  apply  to  all
    40  testamentary dispositions to a trustee occurring on or after such effec-
    41  tive date.