S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1726
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2023
                                ___________
 
 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:
 
   Section  1.  The estates, powers and trusts law is amended by adding a
 new section 2-1.12-a to read as follows:
 § 2-1.12-A APPLICATION OF FORMULA CLAUSE
   (A) IF: (I) A DECEDENT WHO IS A RESIDENT OF NEW YORK STATE DIES  AFTER
 MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE; AND
   (II)  BY  REASON  OF THE DEATH OF SUCH DECEDENT, PROPERTY PASSES OR IS
 ACQUIRED FROM SUCH DECEDENT UNDER A  WILL,  A  TRUST  OR  A  BENEFICIARY
 DESIGNATION WHICH CONTAINS A FORMULA PROVIDING, IN SUM OR SUBSTANCE, FOR
 A  BEQUEST  OR  OTHER DISPOSITION OF THE MAXIMUM AMOUNT OF PROPERTY THAT
 CAN BE SHELTERED FROM FEDERAL ESTATE TAX BY REASON OF AVAILABLE  CREDITS
 AGAINST  SUCH  TAX;  THEN,  UNLESS THE GOVERNING INSTRUMENT SPECIFICALLY
 PROVIDES OTHERWISE BY REFERRING TO THIS SECTION, SUCH FORMULA  SHALL  BE
 DEEMED  TO  REFER TO THE MAXIMUM AMOUNT OF PROPERTY, IF ANY, THAT CAN BE
 SHELTERED FROM BOTH FEDERAL ESTATE TAX AND NEW YORK STATE ESTATE TAX  BY
 REASON  OF  THE  APPLICABLE  CREDIT AMOUNT ALLOWABLE AGAINST EACH OF THE
 FEDERAL ESTATE TAX LIABILITY AND THE NEW YORK STATE ESTATE  TAX  LIABIL-
 ITY.
   (B)  NOTWITHSTANDING  PARAGRAPH  (A)  OF THIS SECTION, NOTHING IN THIS
 SECTION SHALL BE DEEMED TO PRECLUDE A PROCEEDING FROM BEING BROUGHT THAT
 SEEKS AN ORDER: (I) CONSTRUING  THE  DECEDENT'S  INTENT  CONCERNING  THE
 EFFECT  OF  A  FORMULA BEQUEST OR OTHER DISPOSITION CONTAINED IN A WILL,
 TRUST OR BENEFICIARY DESIGNATION, OR
   (II) OVERRIDING THE PRESUMPTION SET  FORTH  IN  SUBPARAGRAPH  (II)  OF
 PARAGRAPH (A) OF THIS SECTION.
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD00907-01-3