Bill Text: NY S06765 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to the computation and allocation of the commissions of trustees of charitable trusts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-05-01 - PRINT NUMBER 6765B [S06765 Detail]
Download: New_York-2017-S06765-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6765--B 2017-2018 Regular Sessions IN SENATE June 16, 2017 ___________ Introduced by Sen. LANZA -- (at request of the Office of Court Adminis- tration) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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. Subdivision 3 of section 2308 of the surrogate's court 2 procedure act, as amended by chapter 243 of the laws of 2001, is amended 3 to read as follows: 4 3. Unless the will otherwise explicitly provides, the annual commis- 5 sions allowed by [subdivision two of] this section shall be payable 6 one-third from the income of the trust and two-thirds from the principal 7 of the trust. However, in the case of a trust whose definition of income 8 is governed by 11-2.4 of the estates, powers and trusts law, such annual 9 commissions shall be payable from the corpus of any such trust after 10 allowance for the unitrust amount and shall not be payable out of such 11 unitrust amount. 12 § 2. Paragraphs (a) and (b) of subdivision 5 of section 2308 of the 13 surrogate's court procedure act, paragraph (a) as amended by chapter 936 14 of the laws of 1984, are amended to read as follows: 15 (a) During the continuance of a trust created solely for public, reli- 16 gious, charitable, scientific, literary, educational or fraternal uses 17 and during the period of continuance of such a trust established after 18 the termination of a life use or uses the trustee shall be entitled to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09529-06-8S. 6765--B 2 1 and may retain annual commissions [from income in an amount annually2equal to 6 per cent of income collected in each year] according to the 3 terms specified in subdivision 2 of this section, but only to the extent 4 of 80 percent of the rates stated therein. Notwithstanding any other 5 provision of law, with respect to any portion of such trust which 6 exceeds a principal value of twenty million dollars, the trustee may 7 only take annual commissions to the extent of 50 percent of the rate 8 specified in paragraph (c) of subdivision 2 of this section. 9 (b) In the case of a trust [created solely for public, religious,10charitable, scientific, literary, educational or fraternal uses the] 11 described in paragraph (a) of this subdivision, a trustee shall not be 12 entitled to any commission from principal as specified in subdivision 1 13 of this section for paying out principal. 14 § 3. Paragraph (c) of subdivision 6 of section 2308 of the surrogate's 15 court procedure act is REPEALED. 16 § 4. Subdivision 12 of section 2308 of the surrogate's court procedure 17 act, as added by chapter 237 of the laws of 1978, is amended to read as 18 follows: 19 12. If a trustee of a trust is authorized or required by the terms of 20 the will to accumulate income for any purpose permitted by law, any 21 income so accumulated which is not added to principal of the trust shall 22 be deemed a separate trust for purposes of this subdivision and the 23 trustee shall be entitled to commissions in respect thereof at the rates 24 and according to the terms and provisions of subdivisions 1 [and], 2 and 25 5 of this section as though, for purposes of computing commissions of 26 the trustee, income so accumulated was principal. 27 § 5. Subdivision 3 of section 2309 of the surrogate's court procedure 28 act, as amended by chapter 243 of the laws of 2001, is amended to read 29 as follows: 30 3. Unless the will or lifetime trust instrument otherwise explicitly 31 provides the annual commissions allowed by [subdivision 2] this section 32 shall be payable one-third from the income of the trust and two-thirds 33 from the principal of the trust. However, in the case of a trust whose 34 definition of income is governed by 11-2.4 of the estates, powers and 35 trusts law or a charitable remainder annuity trust or a charitable 36 remainder unitrust, as defined in section six hundred sixty-four of the 37 Internal Revenue Code of nineteen hundred eighty-six, as amended, such 38 annual commissions shall be payable from the corpus of any such trust 39 after allowance for the annuity or unitrust amounts and shall not be 40 payable out of such annuity or unitrust amounts. 41 § 6. Paragraphs (a) and (b) of subdivision 5 of section 2309 of the 42 surrogate's court procedure act, paragraph (a) as amended by chapter 936 43 of the laws of 1984, are amended to read as follows: 44 (a) During the continuance of a trust created solely for public, reli- 45 gious, charitable, scientific, literary, educational or fraternal uses 46 and during the period of continuance of such a trust established after 47 the termination of a life use or uses the trustee shall be entitled to 48 and may retain annual commissions [from income in an amount annually49equal to 6 per cent of income collected in each year] according to the 50 terms specified in subdivision 2 of this section, but only to the extent 51 of 80 percent of the rates stated therein. Notwithstanding any other 52 provision of law, with respect to any portion of such trust which 53 exceeds a principal value of twenty million dollars, the trustee may 54 only take annual commissions to the extent of 50 percent of the rate 55 specified in paragraph (c) of subdivision 2 of this section.S. 6765--B 3 1 (b) In the case of a trust [created solely for public, religious,2charitable, scientific, literary, educational or fraternal uses the] 3 described in paragraph (a) of this subdivision, a trustee shall not be 4 entitled to any commission from principal as specified in subdivision 1 5 of this section for paying out principal. 6 § 7. Paragraphs (a) and (b) of subdivision 3 of section 2312 of the 7 surrogate's court procedure act, as amended by chapter 511 of the laws 8 of 1987, are amended to read as follows: 9 (a) during the continuance of a trust created solely for public, reli- 10 gious, charitable, scientific, literary, educational or fraternal uses 11 and during the period of continuance of such a trust established after 12 the termination of a life use or uses a corporate trustee shall be enti- 13 tled to and may retain annual commissions [from income] in accordance 14 with the provisions of subdivision 1 or 2 [hereof] of this section, as 15 the case may be, except that the trustee shall not be entitled to a 16 commission for paying out principal. 17 (b) In the case of a trust created solely for public, religious, char- 18 itable, scientific, literary, educational or fraternal uses a corporate 19 trustee shall not be entitled to any commission [from] for paying out 20 principal. 21 § 8. This act shall take effect immediately and shall apply to all 22 trusts in existence on or after such effective date; provided, however 23 that a trustee of a trust in existence on such effective date may elect 24 to continue to take commissions under the law in effect prior to such 25 effective date until December 31 of the year this act takes effect.
