Report on the proposed amendment to §2-1.11(d)(5) of the New York Estate, Powers and Trusts Law concerning renunciation of property interest

SUMMARY

The Committee on Trusts, Estates and Surrogate’s Courts offered a memorandum in support of a proposed amendment to §2-1.11(D)(5) of the New York State Estates, Powers and Trusts Law. That section requires a decedent’s personal representative to obtain prior court authorization to renounce any interest in property to which the decedent became entitled but did not receive prior to his death. Court approval is required even in the most common situation, in which spouses have reciprocal wills with identical beneficiaries who take upon the death of the surviving spouse. Where both spouses die within nine months of each other, disclaimer is often used to minimize the duplication of administration expenses in both estates. The amendment, by removing the requirement of court approval, will reduce expense for the estates and, importantly, reduce delays in implementing the disclaimer, which is ineffective if made more than nine months after death.

BILL INFORMATION

A.9355-A (AM Santabarbara) / S.7144 (Sen. Bonacic) – amends §2-1.11(D)(5) of the New York Estate, Powers and Trusts Law concerning renunciation of property interest (NYS 2014)

OUTCOME

Signed by the Governor, Chp. 315 – August 11, 2014