NY State Senate Bill 2023-S748

Current Bill Status - In Senate Committee Judiciary 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to judiciary
Jan 06, 2023	referred to judiciary

2023-S748 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Surrogate's Court Procedure Act
Laws Affected:: Add §1409-a, SCPA
Versions Introduced in Other Legislative Sessions:: 2019-2020: S6261
2021-2022: S2213

2023-S748 (ACTIVE) - Summary

Prohibits transfer agents from accepting waiver of probate forms to bypass formal estate procedures through the courts.

2023-S748 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S748

SPONSOR: SEPULVEDA
 
TITLE OF BILL:

An act to amend the surrogate's court procedure act, in relation to
prohibiting the use of a waiver of probate form

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would prohibit the usage of a waiver of probate to transfer an
inheritance, and prohibit a transfer agent from accepting a waiver of
probate on behalf of a New York decedent.

 
SUMMARY OF PROVISIONS:

Section 1: Amends the Surrogate's Court Procedure Act by adding a new
section 1409-a. This section prohibits the usage of a waiver of probate
by any deceased person's heirs and/or beneficiaries of an estate, and
prohibits any transfer agent from accepting a waiver of probate on
behalf of a New York decedent.

Section 2: The effective date of this bill.

 
JUSTIFICATION:

Currently transfer agents of publically traded corporations, like Apple,
Google and Amazon, distribute decedent assets with only a sworn affida-
vit and without going through formal estate proceedings that will result
in documentation from the courthouse appointing a fiduciary on behalf of
a New York decedent. The effect of this practice is that the surrogate
court system is often completely sidestepped and family members entitled
to some of the inheritance are left out of the distribution of the
decedent's estate. By prohibiting this practice in New York, this bill
seeks to make sure that family members and beneficiaries of a decedent's
estate get what they are entitled to and are not unfairly left out of
the inheritance. Consequently, this bill will generate increased revenue
for the State through new filing fees that will be collected given that
the surrogate court system is sidestepped in estate matters by transfer
agents. Lastly, this bill empowers the family members with the ability
to look in a public court record for information about a deceased family
member, and allows creditors, such as Medicaid, to file claims and get
reimbursed for services rendered to the decedent.

 
PRIOR LEGISLATIVE HISTORY:

S. 2213 of 2021-22: Referred to Judiciary

S. 6261 of 2019-20: Referred to Judiciary

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S748 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    748
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2023
                                ___________
 
 Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN  ACT  to  amend  the  surrogate's court procedure act, in relation to
   prohibiting the use of a waiver of probate form
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The surrogate's court procedure act is amended by adding a
 new section 1409-a to read as follows:
 § 1409-A. WAIVER OF PROBATE FORM PROHIBITED
   1. FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS  SHALL  HAVE  THE
 FOLLOWING  MEANINGS: (A) "WAIVER OF PROBATE" SHALL MEAN A SWORN DOCUMENT
 EXECUTED BY ANY DECEASED PERSON'S HEIRS AND/OR BENEFICIARIES OF  A  LAST
 WILL AND TESTAMENT AND PRESENTED TO A TRANSFER AGENT TO BRING A CLAIM OF
 ENTITLEMENT  IN AN ACCOUNT OR ACCOUNTS OF SUCH DECEASED PERSON BYPASSING
 FORMAL ESTATE PROCEEDINGS AS REQUIRED BY LAW.
   (B) "TRANSFER AGENT" SHALL MEAN A TRUST COMPANY, BANK,  CREDIT  UNION,
 OR  BROKERAGE  FIRM  WHO  MAINTAINS  RECORDS  OF  INVESTORS AND WORKS TO
 EXECUTE THE TRANSFER OF  HOLDINGS  WITHIN  AN  ACCOUNT,  EITHER  AT  THE
 REQUEST  OF  SUCH  INVESTORS  OR  AT  THE  DIRECTION OF A COURT ORDER OR
 PROCEEDING.
   (C) "ACCOUNT" SHALL HAVE THE SAME MEANING AS SET FORTH IN  SUBDIVISION
 ONE OF SECTION TWO OF THE STATE FINANCE LAW.
   2.  THE  USE  OF A WAIVER OF PROBATE SHALL BE DEEMED PROHIBITED IN THE
 STATE. NO TRANSFER AGENT SHALL ACCEPT AN EXECUTED WAIVER OF PROBATE FROM
 A DECEASED PERSON'S HEIRS OR BENEFICIARIES  OF  SUCH  DECEASED  PERSON'S
 LAST  WILL  AND  TESTAMENT AS PROOF OF ENTITLEMENT TO A CERTAIN ASSET OR
 ASSETS IN ORDER TO FACILITATE THE  TRANSFER  OF  SUCH  ASSET  OR  ASSETS
 BYPASSING FORMAL ESTATE PROCEEDINGS AS REQUIRED BY LAW.
   3.  NO  TRANSFER  AGENT SHALL ACCEPT A WAIVER OF PROBATE, EVEN IF SUCH
 WAIVER OF PROBATE IS AFFIXED WITH A VALID MEDALLION SIGNATURE  GUARANTEE
 FROM  ANY FINANCIAL INSTITUTION AUTHORIZED TO PROVIDE SUCH GUARANTEE. NO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02749-01-3

 S. 748                              2
 
 WAIVER OF PROBATE SHALL BE DEEMED AS SUPPORTING EVIDENCE OF  A  PERSON'S
 CLAIM OF ENTITLEMENT TO AN ASSET OR ASSETS OR TO VERIFY A PERSON'S IDEN-
 TITY AND/OR RELATIONSHIP TO A DECEASED OWNER OF AN ASSET OR ASSETS.
   4.  THIS  SECTION  SHALL APPLY TO ALL PERSONS WHO SHALL AT THE TIME OF
 DEATH BE A RESIDENT OF THE STATE.
   § 2. This act shall take effect immediately.

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Senate Bill S748

Sponsored By

Current Bill Status - In Senate Committee Judiciary Committee

2023-S748 (ACTIVE) - Details

2023-S748 (ACTIVE) - Summary

2023-S748 (ACTIVE) - Sponsor Memo

2023-S748 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S748

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Sponsored By

Luis R. Sepúlveda

Current Bill Status - In Senate Committee Judiciary Committee

2023-S748 (ACTIVE) - Details

2023-S748 (ACTIVE) - Summary

2023-S748 (ACTIVE) - Sponsor Memo

2023-S748 (ACTIVE) - Bill Text download pdf

Comments