Bill Text: NY A09857 | 2009-2010 | General Assembly | Amended
Bill Title: Provides for the interpretation of trust and will clauses relating to federal estate taxes and generation-skipping transfer taxes when the decedent dies during 2010.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Passed) 2010-08-13 - signed chap.349 [A09857 Detail]
Download: New_York-2009-A09857-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
9857--C
I N A S S E M B L Y
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 S 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 S 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.
