Committee Reports

Letter in Support of Legislation to Clarify the Prudent Investor Act

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SUMMARY

The Trusts, Estate and Surrogate’s Courts Committee (Andrew Auchincloss, Chair) wrote a letter to Governor Cuomo urging him to sign legislation that would provide that adjustments made by a trustee, under the Prudent Investor Act, be deemed to be re-characterizations for the purposes of the payment of commissions. The Committee argues that the law is unclear on whether and when adjusted amounts should be re-characterized for purposes of calculating trustee’s commissions. This uncertainty creates the potential for conflict between co-trustees of a trust as to the method for computing commissions on re-characterized amounts.

BILL INFORMATION

A.1482 (AM Weinstein) / S.2079 (Sen. Bonacic) – Provides that adjustments made by a trustee, under the prudent investor act, shall be deemed to be re-characterizations for the purposes of the payment of commissions (NYS 2017)

OUTCOME

Signed by Governor, Chp. 278 – September 12, 2017

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