Assembly Bill A5432

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

2017-A5432 (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.

2017-A5432 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5432
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2017
                                ___________
 
 Introduced  by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. 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.
   § 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.
   § 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.

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