Bill Text: NY S07228 | 2011-2012 | General Assembly | Amended

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Bill Title: Establishes the formula for determining the interest payable on a delayed legacy.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-06-21 - COMMITTED TO RULES [S07228 Detail]

Download: New_York-2011-S07228-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        7228--A
                                   I N  S E N A T E
                                      May 2, 2012
                                      ___________
       Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
         printed to be committed to the Committee  on  Judiciary  --  committee
         discharged, bill amended, ordered reprinted as amended and recommitted
         to said committee
       AN  ACT  to amend the estates, powers and trusts law, in relation to the
         payment of interest on delayed legacies; and to repeal paragraphs  (d)
         and  (e)  of  section 11-1.5 of the estates, powers and trusts law and
         subdivision 7 of section 2102 of the surrogate's court  procedure  act
         relating thereto
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraphs (d) and (e) of section 11-1.5  of  the  estates,
    2  powers and trusts law are REPEALED.
    3    S 2. Paragraph 3 of section 11-A-2.1 of the estates, powers and trusts
    4  law,  as added by chapter 243 of the laws of 2001, is amended to read as
    5  follows:
    6    (3) [A] UNLESS OTHERWISE PROVIDED BY THE TERMS OF THE WILL  OR  TRUST,
    7  COMMENCING  (A) SEVEN MONTHS FROM EITHER THE DATE OF DEATH OR OTHER DATE
    8  A BENEFICIARY IS TO RECEIVE A PECUNIARY AMOUNT OUTRIGHT IF  LETTERS  ARE
    9  NOT  REQUIRED,  OR  (B)  SEVEN  MONTHS  FROM THE TIME LETTERS, INCLUDING
   10  PRELIMINARY OR TEMPORARY LETTERS, ARE GRANTED IF LETTERS ARE REQUIRED, A
   11  fiduciary shall distribute INCOME to a beneficiary who receives a  pecu-
   12  niary  amount outright [the interest or any other amount provided by the
   13  will, the terms of the trust, or applicable law], from net income deter-
   14  mined under paragraph (2) or from  principal  to  the  extent  that  net
   15  income  is  insufficient[.  If  a  beneficiary is to receive a pecuniary
   16  amount outright from a trust after an income interest ends and no inter-
   17  est or other amount is provided for by the terms of the trust or  appli-
   18  cable  law,  the fiduciary shall distribute the interest or other amount
   19  to which the beneficiary would be entitled under applicable law  if  the
   20  pecuniary  amount  were  required to be paid under a will], OF AN AMOUNT
   21  EQUAL TO THE PECUNIARY AMOUNT MULTIPLIED  BY  AN  INCOME  FACTOR,  WHICH
   22  SHALL  BE SET (OR RESET) ON THE FIRST BUSINESS DAY OF EACH CALENDAR YEAR
   23  AND FIXED FOR THAT CALENDAR YEAR AT THE TARGET  FEDERAL  FUNDS  RATE  AS
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15478-03-2
       S. 7228--A                          2
    1  ANNOUNCED  BY  THE  FEDERAL  RESERVE  BOARD  (OR IN THE EVENT THE TARGET
    2  FEDERAL FUNDS RATE IS A RANGE OF RATES, THE HIGH OF THAT RANGE) LESS ONE
    3  PERCENT, BUT IN NO EVENT LESS THAN ONE-HALF OF ONE PERCENT.
    4    S 3.  Subdivision 7 of section 2102 of the surrogate's court procedure
    5  act is REPEALED.
    6    S  4.  This  act  shall take effect on the sixtieth day after it shall
    7  have become a law and shall apply to the estates of decedents who  shall
    8  have died on or after such date.