Title EPT, Estates, Powers & Trusts

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

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

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

§ 11-A-4.12 Timber\n (a) To the extent that a trustee accounts for receipts from the sale\nof timber and related products pursuant to this section, the trustee\nshall allocate the net receipts:\n (1) to income to the extent that the amount of timber removed from the\nland does no…

§ 11-A-4.13 Property not productive of income\n (a) If a gift tax or estate tax marital deduction is allowed for all\nor part of a trust whose assets consist substantially of property that\ndoes not provide the spouse with sufficient income from or use of the\ntrust assets, and i…

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

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

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

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

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

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

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

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

§ 11-A-4.8 Insubstantial allocations not required\n If a trustee determines that an allocation between principal and\nincome required by 11-A-4.9, 11-A-4.10, 11-A-4.11, 11-A-4.12, or\n11-A-4.15 is insubstantial, the trustee may allocate the entire amount\nto principal unless one …

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

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

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

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

§ 11-A-5.4 Transfers from income to reimburse principal\n (a) If a trustee makes or expects to make a principal disbursement\ndescribed in this section, the trustee may transfer an appropriate\namount from income to principal in one or more accounting periods to\nreimburse princi…

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

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

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

§ 11-A-6.2 Severability clause\n If any provision of this article or its application to any person or\ncircumstance is held invalid, the invalidity does not affect other\nprovisions or applications of this article which can be given effect\nwithout the invalid provision or applic…

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

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

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

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

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

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

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

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

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

§ 12-2.5 Title of bona fide purchaser from distributee or testamentary\n beneficiary protected\n The entry and filing of a judgment recovered against a distributee or\ntestamentary beneficiary in an action brought under this article does\nnot affect the rights of a prior purchase…

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

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

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

§ 13-1.4 Action in supreme court to compromise controversies between\n claimants to estate assets\n An action may be maintained in the supreme court to compromise\ncontroversies between claimants to the property of an estate in\naccordance with and subject to the provisions of SC…

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

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

§ 13-2.3 Powers of attorney in relation to decedents' estates required\n to be in writing and recorded\n (a) Every power of attorney relating to an interest in a decedent's\nestate and every conveyance or assignment of an interest in an estate,\nor similar instrument, which conta…

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

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

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

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

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

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

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

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

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

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