Expands assets for the benefit of a decedent's family which are exempt from provisions of a will

This bill amends EPTL §5-3.1 by expanding some of the articles of personal property to be included, deleting some of the items that were previously included and increasing the value of all of the items referenced therein.

Summary of provisions

The provisions of this section were last revised and updated in 1992 at the recommendation of the EPTL-SCPA Advisory Committee. In the past 15 years, inflation has caused the price of the exempt items to rise thus reducing the value of the automobile, furniture and other items the surviving spouse or family may receive. The total potential set off was increased in 1992 from $26,150 to $56,000. The present proposal would increase it again to $92,500.00.

It should be noted this maximum limit is often never reached and is achieved only if the decedent owned the right combination of personal property in the amounts set forth in each subsection of EPTL §5-3.1. For .example, if decedent did not own any items referred to in (a)(3), the $20,000 of value allowed for that item would not go to the family, thus reducing the potential total of exempt property to $72,500.00.

A short summary of the monetary changes is as follows:

1. Household items, etc. was changed from $10,000 to $20,000.

2. Books, computers, etc. was changed from $1,000 to 2,500.

3. Farm animals and tractor were changed from $15,000 to $20,000.

4. The automobile was changed from $15,000 to $25,000.

5. Money (cash equivalents) was changed from $15,000 to $25,000.

The bill also provides that a specific legatee of any of the specified items will receive any excess paid by the spouse or appropriate children over and above the value of such item. The bill also deals with cash passing to a minor. The first $10,000 will be distributed to a minor child under SCPA §2220 without the need for a guardian. If the amount actually due the minor is over $10,000, the overage would be released upon their majority or through a guardianship proceeding. Obviously a child between 18 and 21 years

of age could receive more than $10,000. The bill also provides the Court with the power to issue documentation to facilitate the transfer of assets under this section. Presently, there is no statutory authority for this.

Justification

All of the changes are necessary in light of the changes in our society since the last amendment to the statute which was done over fifteen years ago. Today, most people not only have a home computer but they also have all of the accompanying hardware, home music and video libraries. We also factored in the rising value of furniture. In addition, the value of automobiles, farm machinery, and tractors alone require that the respective maximum values be raised to coincide with these everyday items.

The bill eliminates "or other personal property" and adds language to include cash and cash equivalents, so that this section gives the surviving spouse or children the means to pay their immediate expenses during the settlement of the estate which was probably the original intent of the section. Liquid assets, rather than personal property, is the intent of this subsection,

Legislative history

2009: A.8969 - Passed Assembly.

Fiscal implications for state and local governments

The increased dollar amounts which could be set off to spouse and children may result in a decease in filings of administration petitions and commensurate reduction in the time of court personnel to review such filings. The loss of filing fees which might have been received will be more than offset by the savings of time for court personnel.

Effective date

Effective immediately and applying to estates of persons dying on or after the effective date.