Bill Text: NY A07521 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to trust accounting income and principal in regard to allocating income gains from the sale or exchange of a capital asset.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-01-08 - referred to judiciary [A07521 Detail]

Download: New_York-2019-A07521-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7521
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       May 8, 2019
                                       ___________
        Introduced  by M. of A. ZEBROWSKI, 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 trust
          accounting income and principal
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1.  Paragraph 2 of section 11-A-4.4 of the estates, powers and
     2  trusts  law,  as added by chapter 243 of the laws of 2001, is amended to
     3  read as follows:
     4    (2) money or other property received from the sale,  exchange,  liqui-
     5  dation,  or  change  in  form  of  a principal asset, including realized
     6  profit, subject to this part; provided, however, that a trustee may,  in
     7  a  reasonable  and  impartial exercise of discretion, allocate to income
     8  gains from the sale or exchange  of  a  capital  asset  (as  defined  in
     9  section  1221  of  the Internal Revenue Code of 1986, as amended) to the
    10  extent that principal is re-characterized as income by the  exercise  of
    11  the  power  to  adjust  under  subparagraph  11-2.3(b)(5),  and provided
    12  further, however, that a trustee  who  has  an  unlimited  discretionary
    13  power  to  distribute principal may, in a reasonable and impartial exer-
    14  cise of discretion, allocate to income any or all gains from the sale or
    15  exchange of a capital asset (as defined in section 1221 of the  Internal
    16  Revenue Code of 1986, as amended);
    17    §  2.  This  act  shall take effect immediately and shall apply to all
    18  trusts, whenever established.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10075-01-9