Bill Text: NY S06080 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO JUDICIARY [S06080 Detail]

Download: New_York-2019-S06080-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6080

                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 16, 2019
                                       ___________

        Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
          printed to be committed to the Committee 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:

     1    Section 1. The estates, powers and trusts law is amended by  adding  a
     2  new section 2-1.12-a to read as follows:
     3  § 2-1.12-a Application of formula clause
     4    (a)  If: (i) a decedent who is a resident of New York state dies after
     5  March thirty-first, two thousand nineteen; and
     6    (ii) by reason of the death of such decedent, property  passes  or  is
     7  acquired  from  such  decedent  under  a  will, a trust or a beneficiary
     8  designation which contains a formula providing, in sum or substance, for
     9  a bequest or other disposition of the maximum amount  of  property  that
    10  can  be sheltered from federal estate tax by reason of available credits
    11  against such tax; then, unless  the  governing  instrument  specifically
    12  provides  otherwise  by referring to this section, such formula shall be
    13  deemed to refer to the maximum amount of property, if any, that  can  be
    14  sheltered  from both federal estate tax and New York state estate tax by
    15  reason of the applicable credit amount allowable  against  each  of  the
    16  federal  estate  tax liability and the New York state estate tax liabil-
    17  ity.
    18    (b) Notwithstanding paragraph (a) of this  section,  nothing  in  this
    19  section shall be deemed to preclude a proceeding from being brought that
    20  seeks  an  order:  (i)  construing  the decedent's intent concerning the
    21  effect of a formula bequest or other disposition contained  in  a  will,
    22  trust or beneficiary designation, or
    23    (ii)  overriding  the  presumption  set  forth in subparagraph (ii) of
    24  paragraph (a) of this section.
    25    § 2. This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01346-01-9