Bill Text: NY S07475 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to the computation and allocation of the commissions of trustees of charitable trusts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-06-03 - referred to judiciary [S07475 Detail]
Download: New_York-2023-S07475-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7475 2023-2024 Regular Sessions IN SENATE May 30, 2023 ___________ Introduced by Sen. HOYLMAN-SIGAL -- (at request of the Office of Court Administration) -- 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 the computation and allocation of the commissions of trustees of charita- ble trusts; and to repeal 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, as amended by chapter 601 of the 3 laws of 2019, 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 12 other provision of law, with respect to any portion of such trust 13 which exceeds a principal value of twenty million dollars, the trustee 14 may 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 Paragraph (c) of subdivision 6 of section 2308 of the surrogate's 22 court procedure act is REPEALED. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09925-01-3S. 7475 2 1 § 3. Subdivision 12 of section 2308 of the surrogate's court procedure 2 act, as amended by chapter 601 of the laws of 2019, is amended to read 3 as follows: 4 12. If a trustee of a trust [or donee of a power in trust] is author- 5 ized or required by the terms of the will to accumulate income for any 6 purpose permitted by law, any income so accumulated which is not added 7 to principal of the trust [or to the principal of the property subject8to the power in trust] shall be deemed a separate trust [or separate9fund subject to the power in trust] for purposes of this subdivision and 10 the trustee [or donee of the power in trust] shall be entitled to 11 commissions in respect thereof at the rates and according to the terms 12 and provisions of subdivisions 1 [and], 2 and 5 of this section as 13 though, for purposes of computing commissions of the trustee, income so 14 accumulated was principal. 15 § 4. Subdivision 3 of section 2309 of the surrogate's court procedure 16 act, as amended by chapter 601 of the laws of 2019, is amended to read 17 as follows: 18 3. Unless the will or lifetime trust instrument otherwise explicitly 19 provides, the annual commissions allowed by [subdivision 2] this section 20 shall be payable one-third from the income of the trust [or property21subject to the power in trust] and two-thirds from the principal of the 22 trust [or property subject to the power in trust]. However, in the case 23 of a trust whose definition of income is governed by section 11-2.4 of 24 the estates, powers and trusts law or a charitable remainder annuity 25 trust or a charitable remainder unitrust, as defined in section six 26 hundred sixty-four of the Internal Revenue Code of nineteen hundred 27 eighty-six, as amended, such annual commissions shall be payable from 28 the corpus of any such trust after allowance for the annuity or unitrust 29 amounts and shall not be payable out of such annuity or unitrust 30 amounts. 31 § 5. Paragraphs (a) and (b) of subdivision 5 of section 2309 of the 32 surrogate's court procedure act, as amended by chapter 601 of the laws 33 of 2019, are amended to read as follows: 34 (a) During the continuance of a trust created solely for public, reli- 35 gious, charitable, scientific, literary, educational or fraternal uses 36 and during the period of continuance of such a trust established after 37 the termination of a life use or uses the trustee shall be entitled to 38 and may retain annual commissions [from income in an amount annually39equal to 6 per cent of income collected in each year] according to the 40 terms specified in subdivision 2 of this section, but only to the extent 41 of 80 percent of the rates stated therein. Notwithstanding any other 42 provision of law, with respect to any portion of such trust which 43 exceeds a principal value of twenty million dollars, the trustee may 44 only take annual commissions to the extent of 50 percent of the rate 45 specified in paragraph (c) of subdivision 2 of this section. 46 (b) In the case of a trust [created solely for public, religious,47charitable, scientific, literary, educational or fraternal uses the] 48 described in paragraph (a) of this subdivision, a trustee shall not be 49 entitled to any commission from principal as specified in subdivision 1 50 of this section for paying out principal. 51 § 6. Paragraphs (a) and (b) of subdivision 3 of section 2312 of the 52 surrogate's court procedure act, as amended by chapter 601 of the laws 53 of 2019, are amended to read as follows: 54 (a) during the continuance of a trust created solely for public, reli- 55 gious, charitable, scientific, literary, educational or fraternal uses 56 and during the period of continuance of such a trust established afterS. 7475 3 1 the termination of a life use or uses a corporate trustee shall be enti- 2 tled to and may retain annual commissions [from income] in accordance 3 with the provisions of subdivision 1 or 2 [hereof] of this section, as 4 the case may be, except that the trustee shall not be entitled to a 5 commission for paying out principal. 6 (b) In the case of a trust created solely for public, religious, char- 7 itable, scientific, literary, educational or fraternal uses a corporate 8 trustee shall not be entitled to any commission [from] for paying out 9 principal. 10 § 7. This act shall take effect immediately and shall apply to all 11 trusts in existence on or after such effective date; provided, however, 12 that a trustee of a trust in existence on such effective date may elect 13 to continue to take commissions under the law in effect prior to such 14 effective date until December 31 of the year this act takes effect.