NY State Senate Bill 2025-S4549

Senate Bill S4549

2025-2026 Legislative Session

Relates to requiring principals to notify co-trustees and co-beneficiaries of the signing of a power of attorney

download bill text pdf

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 06, 2025	referred to judiciary

2025-S4549 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: General Obligations Law
Laws Affected:: Add §5-1515, Gen Ob L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8892
2023-2024: S3503

2025-S4549 (ACTIVE) - Summary

Requires principals to make a good faith effort to identify and notify co-trustees and co-beneficiaries of the signing of a power of attorney including the identity of the agent where the agent is not a co-trustee or co-beneficiary.

2025-S4549 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4549

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to requiring
principals and beneficiaries to notify co-trustees and co-beneficiaries
of the signing of a power of attorney

 
PURPOSE:

To provide more transparency in certain financial matters.

 
SUMMARY OF PROVISIONS:

Section 1: Amends the general obligations law by adding section 5-1515,
which relates to a duty for trustees and beneficiaries to notify others
when executing a power of attorney (POA) that impacts a trust. If a
trustee signs a POA granting an agent authority over the trust and the
agent is not a co-trustee, the trustee must make a good faith effort to
notify all co-trustees in writing and disclose the agent's identity.
Similarly, if a beneficiary signs a POA and the agent is not a co-bene-

ficiary, the beneficiary must notify all co-beneficiaries in writing. If
a co-beneficiary cannot be identified or contacted after reasonable
efforts, the principal must attest to the attempts made.

Section 2: Sets Effective Date.

 
JUSTIFICATION:

This bill provides essential protections for trustees and beneficiaries
in financial matters where they share a trust or financial agreement
with others. Currently, a trustee or beneficiary can execute a power of
attorney (POA) with a third party without notifying co-trustees or
co-beneficiaries, creating a risk that an unauthorized agent could
deplete the trust or financial assets.  Therefore, this legislation
mandates that any trustee or beneficiary who grants a POA must notify
all co-trustees and co-beneficiaries in writing, ensuring transparency
and safeguarding shared financial interests. If a principal cannot iden-
tify or contact a co-beneficiary despite making good-faith efforts, they
must formally attest to their attempts. By implementing this require-
ment, the bill enhances accountability and prevents potential financial
exploitation within shared trusts and financial agreements.

 
LEGISLATIVE HISTORY:

Senate

2021: N/A

2022: S8892, Vetoed Memo.11l

2023: S3503A, Advanced to Third Reading

2024: S3503A, Advanced to Third Reading

Assembly

2021: A4601, Referred to Judiciary
2022: A4601, Vetoed Memo.11l

2023: No Assembly Same-As

2024: No Assembly Same-As

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law.

2025-S4549 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4549
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 6, 2025
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the general obligations law, in  relation  to  requiring
   principals  and beneficiaries to notify co-trustees and co-beneficiar-
   ies of the signing of a power of attorney

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  obligations  law is amended by adding a new
 section 5-1515 to read as follows:
   § 5-1515. DUTY TO NOTIFY OTHER TRUSTEES AND BENEFICIARIES. 1.  WHEN  A
 PRINCIPAL,  WHO IS A TRUSTEE OF A TRUST, SIGNS A POWER OF ATTORNEY WHICH
 ALLOWS THE AGENT TO AFFECT SUCH TRUST AND THE AGENT IS NOT A  CO-TRUSTEE
 OF  SUCH TRUST, THE PRINCIPAL SHALL MAKE A GOOD FAITH EFFORT TO IDENTIFY
 AND NOTIFY IN WRITING ALL OTHER CO-TRUSTEES OF THE SIGNING OF A POWER OF
 ATTORNEY AND IDENTIFY THE PERSON ASSIGNED AS THE PRINCIPAL'S AGENT.
   2. WHEN A PRINCIPAL, WHO IS A BENEFICIARY OF A TRUST, SIGNS A POWER OF
 ATTORNEY AND THE AGENT IS NOT A CO-BENEFICIARY OF SUCH TRUST, THE  PRIN-
 CIPAL  SHALL NOTIFY IN WRITING ALL OTHER CO-BENEFICIARIES OF THE SIGNING
 OF A POWER OF ATTORNEY AND IDENTIFY THE PERSON ASSIGNED AS  THE  PRINCI-
 PAL'S AGENT.  IF THE PRINCIPAL CANNOT IDENTIFY OR CONTACT A CO-BENEFICI-
 ARY AFTER GOOD FAITH EFFORTS WERE MADE, THE PRINCIPAL MUST ATTEST TO THE
 EFFORTS MADE TO IDENTIFY AND/OR CONTACT CO-BENEFICIARIES.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08773-01-5

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