Title EPT, Estates, Powers & Trusts

§ 11-A-4.1 Character of receipts (a) In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a tru…

§ 11-A-4.10 Liquidating asset (a) In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and ri…

§ 11-A-4.11 Minerals, water, and other natural resources (a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows: (1) If received as a bonus, delay rental o…

§ 11-A-4.12 Timber (a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts: (1) to income to the extent that the amount of timber removed from the land does not excee…

§ 11-A-4.13 Property not productive of income (a) If a gift tax or estate tax marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the…

§ 11-A-4.14 Derivatives and options (a) In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or i…

§ 11-A-4.15 Asset-backed securities (a) In this section, "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an ass…

§ 11-A-4.2 Distribution from trust or estate A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a dis…

§ 11-A-4.3 Business and other activities conducted by trustee (a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of …

§ 11-A-4.4 Principal receipts A trustee shall allocate to principal: (1) to the extent not allocated to income under this article, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under…

§ 11-A-4.5 Rental property To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a…

§ 11-A-4.6 Obligation to pay money (a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income witho…

§ 11-A-4.7 Insurance policies and similar contracts (a) Except as otherwise provided in paragraph (b), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract t…

§ 11-A-4.8 Insubstantial allocations not required If a trustee determines that an allocation between principal and income required by 11-A-4.9, 11-A-4.10, 11-A-4.11, 11-A-4.12, or 11-A-4.15 is insubstantial, the trustee may allocate the entire amount to principal unless one of th…

§ 11-A-4.9 Deferred compensation, annuities, and similar payments (a) In this section, "payment" means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payer…

§ 11-A-5.1 Disbursements from income A trustee shall make the following disbursements from income to the extent that they are not disbursements to which subparagraph 11-A-2.1 (2)(B) or (C) applies: (1) one-third of the regular compensation of any person providing investment advis…

§ 11-A-5.2 Disbursements from principal (a) A trustee shall make the following disbursements from principal: (1) the remaining two-thirds of the disbursements described in paragraph 11-A-5.1 (1); (2) all of the trustee's compensation calculated on principal as a fee for acceptanc…

§ 11-A-5.3 Transfers from income to principal for depreciation (a) In this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year. (b) A trustee may transfer to pr…

§ 11-A-5.4 Transfers from income to reimburse principal (a) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal o…

§ 11-A-5.5 Income taxes (a) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income. (b) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income …

§ 11-A-5.6 Adjustments between principal and income because of taxes A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from: (1) elections…

§ 11-A-6.1 Uniformity of application and construction In applying and construing this article, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

§ 11-A-6.2 Severability clause If any provision of this article or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this article which can be given effect without the invalid provision or application…

§ 11-A-6.3 Effective date This article takes effect on January first, two thousand two.

§ 11-A-6.4 Application of article Except as specifically provided in the trust instrument, the will, or in this article, this article shall apply to any receipt or expense received or incurred on or after its effective date by any trust or decedent's estate established before, on…

§ 12-1.1 Liability of distributees and testamentary beneficiaries (a) Subject to the other provisions of this article, distributees and testamentary beneficiaries are liable, in an action, to the extent of the value of any property received by them as such, for the debts and reas…

§ 12-1.2 Order of liability; preferences (a) Distributees and testamentary beneficiaries are liable, as provided in 12-1.1, in the following order: (1) Distributees. (2) Residuary beneficiaries. (3) General beneficiaries. Demonstrative beneficiaries shall be treated as general be…

§ 12-1.3 Extent of liability; judgment debtor's right to indemnity and contribution (a) Although subject, under paragraph (a) of 12-1.1, to a judgment in the full amount of the value of any property received by him, which may exceed his ratable obligation as described herein, the…

§ 12-2.1 Action not impaired by failure of creditor or other person to present claim to representative as prescribed by law The failure of the plaintiff to present his claim to the personal representative as prescribed by law shall not impair his right to maintain an action again…

§ 12-2.2 Action may be joint or several; right to implead An action may be brought against one or more of the persons subject to liability under this article. A person against whom an action is brought may implead, pursuant to the provisions of CPLR article 10 governing impleader…

§ 12-2.3 Effect of application to surrogate to sell real property If, during the pendency of an action to enforce a liability created by this article against a distributee or devisee of real property, a proceeding is pending or is subsequently commenced for the judicial settlemen…

§ 12-2.4 Effect of judgment A judgment recovered in an action brought under this article is preferred, as a lien on any property of the decedent passing to a defendant against whom the judgment was recovered, to a judgment obtained against such defendant on his personal obligatio…

§ 12-2.5 Title of bona fide purchaser from distributee or testamentary beneficiary protected The entry and filing of a judgment recovered against a distributee or testamentary beneficiary in an action brought under this article does not affect the rights of a prior purchaser, in …

§ 13-1.1 Certain assets considered personal property (a) For purposes of the administration of an estate, the following assets of the decedent are personal property and together with every other species of personal property pass to the personal representative: (1) Estates for yea…

§ 13-1.2 Assets; debt due from executor to testator; effect of discharge by will The designation by will of a person as executor does not operate as a discharge or testamentary disposition of any just claim which the testator had against him, but such claim must be included as an…

§ 13-1.3 Assets chargeable with payment of estate obligations; order in which assets appropriated; abatement (a) All of the property of a decedent, and any income therefrom in the course of estate administration, is chargeable with the payment of: (1) Administration and reasonabl…

§ 13-1.4 Action in supreme court to compromise controversies between claimants to estate assets An action may be maintained in the supreme court to compromise controversies between claimants to the property of an estate in accordance with and subject to the provisions of SCPA 210…

§ 13-2.1 Agreements involving a contract to establish a trust, to make a testamentary provision of any kind, and by a personal representative to answer for the debt or default of a decedent, required to be in writing (a) Every agreement, promise or undertaking is unenforceable un…

§ 13-2.2 Transfers and mortgages of interest in decedents' estates required to be in writing and recorded (a) Every conveyance, assignment or other transfer of, and every mortgage, security interest in or other charge upon the interest, situated in this state, of a person in the …

§ 13-2.3 Powers of attorney in relation to decedents' estates required to be in writing and recorded (a) Every power of attorney relating to an interest in a decedent's estate and every conveyance or assignment of an interest in an estate, or similar instrument, which contains an…

§ 13-3.1 Rights of payees in non-transferable United States savings bonds Where any United States savings bond is payable to a designated person, whether as owner, co-owner or beneficiary, and such bond is not transferable, the right of such person to receive payment of the bond …

§ 13-3.2 Rights of beneficiaries of pension, retirement, death benefit, stock bonus and profit-sharing plans, systems or trusts and of beneficiaries of annuities and supplemental insurance contracts (a) If a person is entitled to receive (1) payment in money, securities or other …

§ 13-3.3 Designation of trustee to receive proceeds of thrift, savings, pension, retirement, death benefit, stock bonus and profit-sharing plans, systems or trusts, of life, group life, industrial life or accident and health insurance policies and of annuity, endowment and supple…

§ 13-3.4 Payment or delivery of property to foreign fiduciaries (a) Whenever any foreign fiduciary, by whatever title he is designated, of the property or estate of a non-domiciliary infant, incompetent or decedent is authorized, by the laws of the foreign jurisdiction where the …

§ 13-3.5 Action or proceeding by foreign personal or other legal representative (a) A personal or other legal representative of a non-domiciliary decedent, duly appointed or authorized by the law of any other state, territory or other jurisdiction of the United States where the d…

§ 13-3.6 Disaffirmance of fraudulent acts by personal representative and others A fiduciary may, for the benefit of creditors or others interested in property held in trust, treat as void any act done, or disposition or agreement made in fraud of the rights of any creditor, inclu…

§ 13-4.1 Definitions As used in this part unless the context otherwise requires: (a) "Beneficiary form" means a registration of a security which indicates the present owner of the security and the intention of the owner regarding the person who will become the owner of the securi…

§ 13-4.10 Terms, conditions, and forms (a) A registering entity offering to accept registrations in beneficiary form may establish the terms and conditions under which it will receive requests (i) for registrations in beneficiary form, and (ii) for implementation of registration …

§ 13-4.11 Rules of construction (a) This part shall be liberally construed and applied to promote its underlying purposes and policy and to make uniform the laws with respect to the subject of this part among states enacting it. (b) Unless displaced by the particular provisions o…

§ 13-4.12 Application This part applies to registrations of securities in beneficiary form made before, on or after January first, two thousand six, by decedents dying on or after January first, two thousand six.