Assembly Bill A873

2013-2014 Legislative Session

Clarifies and declares as the existing law of the state of New York the provisions of rules relating to the lapse of a power of withdrawal over the income of a trust

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2013-A873 (ACTIVE) - Details

Current Committee:
Assembly Judiciary
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd §7-3.1, EPT L; amd §5205, CPLR
Versions Introduced in Other Legislative Sessions:
2009-2010: A6762
2011-2012: A2004
2015-2016: A3345
2017-2018: A5432
2019-2020: A4034
2021-2022: A9199
2023-2024: A935

2013-A873 (ACTIVE) - Summary

Clarifies and declares as the existing law of the state of New York the provisions of rules relating to the lapse of a power of withdrawal over the income or principal of a trust.

2013-A873 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   873

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. BRENNAN,
  COLTON,  ORTIZ, STEVENSON, WEISENBERG -- read once and referred to the
  Committee on Judiciary

AN ACT to amend the estates, powers and trusts law and the  civil  prac-
  tice  law  and  rules,  in relation to clarifying and declaring as the
  existing law of the state of New York the provisions of rules relating
  to the lapse of a power of withdrawal over the income or principal  of
  a trust

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (a) of section 7-3.1 of the estates,  powers  and
trusts law, as amended by chapter 108 of the laws of 1987, is amended to
read as follows:
  (a)  A  disposition  in  trust  for  the use of the creator is void as
against the existing or subsequent creditors of the creator. NO INDIVID-
UAL SHALL BE TREATED FOR PURPOSES OF  THIS  SECTION  AS  HAVING  MADE  A
DISPOSITION IN TRUST FOR THE USE OF THAT INDIVIDUAL BY REASON OF A LAPSE
OF A POWER OF WITHDRAWAL OVER THE INCOME OR CORPUS OF A TRUST CREATED BY
ANOTHER PERSON.
  S 2. Paragraph 1 of subdivision (c) of section 5205 of the civil prac-
tice  law  and  rules,  as amended by chapter 93 of the laws of 1995, is
amended to read as follows:
  1. Except as provided in paragraphs four and five of this subdivision,
all property while held in trust for a judgment debtor, where the  trust
has  been created by, or the fund so held in trust has proceeded from, a
person other than the judgment debtor, is exempt from application to the
satisfaction of a money judgment. FOR PURPOSES OF THIS SECTION, A  JUDG-
MENT  DEBTOR  SHALL  NOT  BE  TREATED  AS CREATING OR FUNDING A TRUST BY
REASON OF THE LAPSE OF A POWER OF WITHDRAWAL OVER THE INCOME OR  PRINCI-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02907-01-3

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