Assembly Bill A3345

2015-2016 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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2015-A3345 (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
2013-2014: A873
2017-2018: A5432
2019-2020: A4034
2021-2022: A9199
2023-2024: A935

2015-A3345 (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.

2015-A3345 (ACTIVE) - Bill Text download pdf 

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

                                  3345

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2015
                               ___________

Introduced by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. BRENNAN,
  COLTON, ORTIZ -- 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-
PAL OF A TRUST CREATED AND FUNDED BY A PERSON OR PERSONS OTHER THAN  THE
JUDGMENT DEBTOR.
  S  3.  This act shall take effect immediately and shall be enforceable
as to all trusts created under New York law, regardless of when created,
as it is declaratory of existing New York law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

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