Bill Text: NY S00748 | 2023-2024 | General Assembly | Introduced

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Bill Title: Prohibits transfer agents from accepting waiver of probate forms to bypass formal estate procedures through the courts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO JUDICIARY [S00748 Detail]

Download: New_York-2023-S00748-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           748

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 6, 2023
                                       ___________

        Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary

        AN  ACT  to  amend  the  surrogate's court procedure act, in relation to
          prohibiting the use of a waiver of probate form

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. The surrogate's court procedure act is amended by adding a
     2  new section 1409-a to read as follows:
     3  § 1409-a. Waiver of probate form prohibited
     4    1. For purposes of this section, the following terms  shall  have  the
     5  following  meanings: (a) "Waiver of probate" shall mean a sworn document
     6  executed by any deceased person's heirs and/or beneficiaries of  a  last
     7  will and testament and presented to a transfer agent to bring a claim of
     8  entitlement  in an account or accounts of such deceased person bypassing
     9  formal estate proceedings as required by law.
    10    (b) "Transfer agent" shall mean a trust company, bank,  credit  union,
    11  or  brokerage  firm  who  maintains  records  of  investors and works to
    12  execute the transfer of  holdings  within  an  account,  either  at  the
    13  request  of  such  investors  or  at  the  direction of a court order or
    14  proceeding.
    15    (c) "Account" shall have the same meaning as set forth in  subdivision
    16  one of section two of the state finance law.
    17    2.  The  use  of a waiver of probate shall be deemed prohibited in the
    18  state. No transfer agent shall accept an executed waiver of probate from
    19  a deceased person's heirs or beneficiaries  of  such  deceased  person's
    20  last  will  and  testament as proof of entitlement to a certain asset or
    21  assets in order to facilitate the  transfer  of  such  asset  or  assets
    22  bypassing formal estate proceedings as required by law.
    23    3.  No  transfer  agent shall accept a waiver of probate, even if such
    24  waiver of probate is affixed with a valid medallion signature  guarantee
    25  from  any financial institution authorized to provide such guarantee. No

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02749-01-3
        S. 748                              2

     1  waiver of probate shall be deemed as supporting evidence of  a  person's
     2  claim of entitlement to an asset or assets or to verify a person's iden-
     3  tity and/or relationship to a deceased owner of an asset or assets.
     4    4.  This  section  shall apply to all persons who shall at the time of
     5  death be a resident of the state.
     6    § 2. This act shall take effect immediately.