Bill Text: NY A09764 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to the computation and allocation of the commissions of trustees of charitable trusts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-05-07 - amended on third reading 9764a [A09764 Detail]
Download: New_York-2017-A09764-Introduced.html
Bill Title: Relates to the computation and allocation of the commissions of trustees of charitable trusts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-05-07 - amended on third reading 9764a [A09764 Detail]
Download: New_York-2017-A09764-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9764 IN ASSEMBLY February 6, 2018 ___________ Introduced by M. of A. DINOWITZ -- (at request of the Office of Court Administration) -- read once and referred to the Committee on Judici- ary AN ACT to amend the surrogate's court procedure act, in relation to the computation and allocation of the commissions of trustees of charita- ble trusts; and repealing certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs (a) and (b) of subdivision 5 of section 2308 of 2 the surrogate's court procedure act, paragraph (a) as amended by chapter 3 936 of the laws of 1984, are amended to read as follows: 4 (a) During the continuance of a trust created solely for public, reli- 5 gious, charitable, scientific, literary, educational or fraternal uses 6 and during the period of continuance of such a trust established after 7 the termination of a life use or uses the trustee shall be entitled to 8 and may retain annual commissions [from income in an amount annually9equal to 6 per cent of income collected in each year] according to the 10 terms specified in subdivision 2 of this section, but only to the extent 11 of 80 percent of the rates stated therein. Notwithstanding any other 12 provision of law, with respect to any portion of such trust which 13 exceeds a principal value of twenty million dollars, the trustee may 14 only take annual commissions to the extent of 50 percent of the rate 15 specified in paragraph (c) of subdivision 2 of this section. 16 (b) In the case of a trust [created solely for public, religious,17charitable, scientific, literary, educational or fraternal uses the] 18 described in paragraph (a) of this subdivision, a trustee shall not be 19 entitled to any commission from principal as specified in subdivision 1 20 of this section for paying out principal. 21 § 2. Paragraph (c) of subdivision 6 of section 2308 of the surrogate's 22 court procedure act is REPEALED. 23 § 3. Subdivision 12 of section 2308 of the surrogate's court procedure 24 act, as added by chapter 237 of the laws of 1978, is amended to read as 25 follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09529-05-8A. 9764 2 1 12. If a trustee of a trust is authorized or required by the terms of 2 the will to accumulate income for any purpose permitted by law, any 3 income so accumulated which is not added to principal of the trust shall 4 be deemed a separate trust for purposes of this subdivision and the 5 trustee shall be entitled to commissions in respect thereof at the rates 6 and according to the terms and provisions of subdivisions 1 [and], 2 and 7 5 of this section as though, for purposes of computing commissions of 8 the trustee, income so accumulated was principal. 9 § 4. Subdivision 3 of section 2309 of the surrogate's court procedure 10 act, as amended by chapter 243 of the laws of 2001, is amended to read 11 as follows: 12 3. Unless the will or lifetime trust instrument otherwise explicitly 13 provides the annual commissions allowed by [subdivision 2] this section 14 shall be payable one-third from the income of the trust and two-thirds 15 from the principal of the trust. However, in the case of a trust whose 16 definition of income is governed by 11-2.4 of the estates, powers and 17 trusts law or a charitable remainder annuity trust or a charitable 18 remainder unitrust, as defined in section six hundred sixty-four of the 19 Internal Revenue Code of nineteen hundred eighty-six, as amended, such 20 annual commissions shall be payable from the corpus of any such trust 21 after allowance for the annuity or unitrust amounts and shall not be 22 payable out of such annuity or unitrust amounts. 23 § 5. Paragraphs (a) and (b) of subdivision 5 of section 2309 of the 24 surrogate's court procedure act, paragraph (a) as amended by chapter 936 25 of the laws of 1984, are amended to read as follows: 26 (a) During the continuance of a trust created solely for public, reli- 27 gious, charitable, scientific, literary, educational or fraternal uses 28 and during the period of continuance of such a trust established after 29 the termination of a life use or uses the trustee shall be entitled to 30 and may retain annual commissions [from income in an amount annually31equal to 6 per cent of income collected in each year] according to the 32 terms specified in subdivision 2 of this section, but only to the extent 33 of 80 percent of the rates stated therein. Notwithstanding any other 34 provision of law, with respect to any portion of such trust which 35 exceeds a principal value of twenty million dollars, the trustee may 36 only take annual commissions to the extent of 50 percent of the rate 37 specified in paragraph (c) of subdivision 2 of this section. 38 (b) In the case of a trust [created solely for public, religious,39charitable, scientific, literary, educational or fraternal uses the] 40 described in paragraph (a) of this subdivision, a trustee shall not be 41 entitled to any commission from principal as specified in subdivision 1 42 of this section for paying out principal. 43 § 6. Paragraphs (a) and (b) of subdivision 3 of section 2312 of the 44 surrogate's court procedure act, as amended by chapter 511 of the laws 45 of 1987, are amended to read as follows: 46 (a) during the continuance of a trust created solely for public, reli- 47 gious, charitable, scientific, literary, educational or fraternal uses 48 and during the period of continuance of such a trust established after 49 the termination of a life use or uses a corporate trustee shall be enti- 50 tled to and may retain annual commissions [from income] in accordance 51 with the provisions of subdivision 1 or 2 [hereof] of this section, as 52 the case may be, except that the trustee shall not be entitled to a 53 commission for paying out principal. 54 (b) In the case of a trust created solely for public, religious, char- 55 itable, scientific, literary, educational or fraternal uses a corporateA. 9764 3 1 trustee shall not be entitled to any commission [from] for paying out 2 principal. 3 § 7. This act shall take effect immediately and shall apply to all 4 trusts in existence on or after such effective date; provided, however 5 that a trustee of a trust in existence on such effective date may elect 6 to continue to take commissions under the law in effect prior to such 7 effective date until December 31 of the year this act takes effect.