Assembly Bill A935

2023-2024 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

Current 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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2023-A935 (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
2017-2018: A5432
2019-2020: A4034
2021-2022: A9199

2023-A935 (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.

2023-A935 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    935
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by  M. of A. WEPRIN, COLTON -- 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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01522-01-3
 A. 935                              2

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