Bill Text: NY A03087 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to providing a presumption that credit shelter bequests be construed to set aside the maximum amount that may be shielded from both federal and state estate taxes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - referred to judiciary [A03087 Detail]

Download: New_York-2021-A03087-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          3087

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 22, 2021
                                       ___________

        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee on Judiciary

        AN  ACT  to  amend  the  estates,  powers and trusts law, in relation to
          providing a presumption that credit shelter bequests be  construed  to
          set  aside  the  maximum amount that may be shielded from both federal
          and state estate taxes

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

     1    Section  1.  The estates, powers and trusts law is amended by adding a
     2  new section 2-1.12-a to read as follows:
     3  § 2-1.12-a Application of formula clause
     4    (a) If: (i) a decedent who is a resident of New York state dies  after
     5  March thirty-first, two thousand twenty-one; and
     6    (ii)  by  reason  of the death of such decedent, property passes or is
     7  acquired from such decedent under a  will,  a  trust  or  a  beneficiary
     8  designation which contains a formula providing, in sum or substance, for
     9  a  bequest  or  other disposition of the maximum amount of property that
    10  can be sheltered from federal estate tax by reason of available  credits
    11  against  such  tax;  then,  unless the governing instrument specifically
    12  provides otherwise by referring to this section, such formula  shall  be
    13  deemed  to  refer to the maximum amount of property, if any, that can be
    14  sheltered from both federal estate tax and New York state estate tax  by
    15  reason  of  the  applicable  credit amount allowable against each of the
    16  federal estate tax liability and the New York state estate  tax  liabil-
    17  ity.
    18    (b)  Notwithstanding  paragraph  (a)  of this section, nothing in this
    19  section shall be deemed to preclude a proceeding from being brought that
    20  seeks an order: (i) construing  the  decedent's  intent  concerning  the
    21  effect  of  a  formula bequest or other disposition contained in a will,
    22  trust or beneficiary designation, or
    23    (ii) overriding the presumption set  forth  in  subparagraph  (ii)  of
    24  paragraph (a) of this section.
    25    § 2. This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05503-01-1