S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7519
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 8, 2019
                                ___________
 
 Introduced  by M. of A. STIRPE, DINOWITZ -- (at request of the Office of
   Court Administration) -- read once and referred to  the  Committee  on
   Judiciary
 
 AN  ACT  to  amend  the  estates,  powers and trusts law, in relation to
   testamentary disposition to trustee  under,  or  in  accordance  with,
   terms of existing inter vivos trust

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3-3.7 of the estates, powers and trusts law,  para-
 graph (a) as amended by chapter 139 of the laws of 1997 and such section
 as  renumbered by chapter 472 of the laws of 1967, is amended to read as
 follows:
 § 3-3.7 Testamentary disposition to trustee under, or in accordance with
           terms of existing inter vivos trust
   (a) A testator [or testatrix] may by will dispose of or appoint all or
 any part of [his or her] SUCH TESTATOR'S estate to a trustee of a trust,
 the terms of which are evidenced by a written instrument executed by the
 testator [or testatrix], the testator  [or  testatrix]  and  some  other
 person,  or  some  other  person,  including a trust established for the
 receipt of the proceeds of an annuity or pure endowment contract, or  of
 a  thrift,  savings, pension, retirement, death benefit, stock bonus, or
 profit-sharing plan or system or a funded or unfunded life, group  life,
 industrial  life  or  accident  and health insurance trust (although the
 [settlor] PERSON ESTABLISHING SUCH TRUST has reserved any or all  rights
 of  ownership of the insurance contracts), regardless of [the existence,
 size or character of the corpus of such insurance trust or other  trust]
 WHETHER ANY ASSETS HAVE BEEN TRANSFERRED TO THE TRUST PRIOR TO THE DEATH
 OF THE TESTATOR; provided that [such] THE trust instrument is IDENTIFIED
 IN  THE  WILL AND IS executed BY THE PERSON ESTABLISHING THE TRUST PRIOR
 TO OR CONTEMPORANEOUSLY WITH THE EXECUTION OF THE WILL AND, UNLESS  SUCH
 PERSON IS THE SOLE TRUSTEE, BY AT LEAST ONE TRUSTEE THEREOF PRIOR TO THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10069-01-9

 A. 7519                             2
 
 DEATH  OF  THE TESTATOR, in the manner [provided for in 7-1.17, prior to
 or contemporaneously with the execution of  the  will,  and  such  trust
 instrument  is  identified  in  such  will] REQUIRED BY THE LAWS OF THIS
 STATE  FOR  THE  RECORDING  OF A CONVEYANCE OF REAL PROPERTY OR, IN LIEU
 THEREOF, IN THE PRESENCE OF TWO WITNESSES WHO SHALL AFFIX  THEIR  SIGNA-
 TURES TO THE TRUST INSTRUMENT.
   (b) The testamentary disposition or appointment is valid, even though:
   (1) The trust instrument is amendable or revocable, or both, provided,
 however,  that  the  disposition or appointment shall be given effect in
 accordance with the terms of the trust instrument, including  an  amend-
 ment  thereto,  as  they appear in writing on the date of the testator's
 death and, where the testator so directs, including  amendments  to  the
 trust  instrument  after  his OR HER death, if the instrument evidencing
 such amendment is executed  and  acknowledged  in  the  manner  [herein]
 provided  for  [executing  and  acknowledging  the  instrument  which it
 amends] IN PARAGRAPH (B) OF 7-1.17.
   (2) The right is reserved in such trust instrument (A) to exercise any
 power over any property transferred to or held in the trust  or  (B)  to
 direct  during  the  lifetime  of  the [settlor] PERSON ESTABLISHING THE
 TRUST or any other person, the persons and organizations to whom  or  in
 whose behalf the income shall be paid or the principal distributed.
   (3) The trust instrument or any amendment thereto was not executed and
 attested in accordance with the formalities prescribed by 3-2.1.
   (c) The property so disposed of or appointed by will becomes a part of
 the  trust  to which it is given, and title thereto vests in the trustee
 to be administered and disposed of in accordance with the terms  of  the
 trust instrument.
   (d)  Any  disposition or appointment to the trustee made by a testator
 who died prior to the effective date of this  section,  which  would  be
 invalid  under  the applicable law of this state pre-existing the effec-
 tive date of this section, shall be construed to create  a  testamentary
 trust  under  and  in  accordance with the terms of the trust instrument
 which the testator  originally  intended  should  embrace  the  property
 disposed  of or appointed, as such terms appear in such trust instrument
 at the date of the testator's death.
   (e) A revocation or termination of the trust before the death  of  the
 testator  shall cause the disposition or appointment to fail, unless the
 testator has made an alternative disposition.
   § 2. This act shall take effect immediately and  shall  apply  to  all
 testamentary dispositions to a trustee occurring on or after such effec-
 tive date.