Bill Text: NY A01185 | 2013-2014 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2014-10-21 - signed chap.404 [A01185 Detail]

Download: New_York-2013-A01185-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1185
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by  M.  of  A.  WEINSTEIN  --  read once and referred to the
         Committee on Judiciary
       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    2  powers and trusts law are REPEALED.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
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03692-01-3
       A. 1185                             2
    1  SHALL BE SET (OR RESET) ON THE FIRST BUSINESS DAY OF EACH CALENDAR  YEAR
    2  AND  FIXED  FOR  THAT  CALENDAR YEAR AT THE TARGET FEDERAL FUNDS RATE AS
    3  ANNOUNCED BY THE FEDERAL RESERVE BOARD  (OR  IN  THE  EVENT  THE  TARGET
    4  FEDERAL FUNDS RATE IS A RANGE OF RATES, THE HIGH OF THAT RANGE) LESS ONE
    5  PERCENT, BUT IN NO EVENT LESS THAN ONE-HALF OF ONE PERCENT.
    6    S 3.  Subdivision 7 of section 2102 of the surrogate's court procedure
    7  act is REPEALED.
    8    S  4.  This  act  shall take effect on the sixtieth day after it shall
    9  have become a law and shall apply to the estates of decedents who  shall
   10  have died on or after such date.