What's happening
This bill expands limitations on powers and immunities of executors and trustees to include inter vivos (living) trusts.
Why it matters
Expands accountability to living trusts. By adding inter vivos (living) trusts to the statute, the bill ensures that trustees of these trusts face the same restrictions as executors and testamentary trustees, closing a loophole that previously allowed different standards for living trusts versus wills.
Limits exoneration and asset valuation powers. The bill prohibits granting trustees of living trusts immunity from liability for negligence or allowing them to unilaterally set asset values for distribution—practices that could have enabled abuse or mismanagement without recourse.
Protects beneficiaries’ rights. Anyone with an interest in a trust (not just a will) can now challenge provisions that violate these limitations, ensuring that beneficiaries of living trusts have the same legal protections as those of estates governed by wills.
Applies prospectively for clarity. The changes only affect new wills and trusts created after the law takes effect, providing clear guidance for future estate planning while avoiding retroactive disruption.
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Who cares
Headline styles
Limit Executor and Trustee Powers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.245
- Delivered to governor
- Returned to assembly
- Passed senateVote 61–0
- 3rd reading cal.810
- Substituted for S6138
- Referred to judiciary
- Delivered to senate
- Passed assembly
- Advanced to third reading cal.726
- Reported
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Executor Legal Immunity
Senate Floor Calendar · Sponsor John J. Bonacic
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10100
IN ASSEMBLY
March 14, 2018
Introduced by M. of A. DINOWITZ -- read once and referred to the Committee on Judiciary
AN ACT to amend the estates, powers and trusts law, in relation to limitations on powers and immunities of executors and testamentary trustees
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 11-1.7 of the estates, powers and trusts law, as amended by chapter 686 of the laws of 1967, is amended to read as follows: § 11-1.7 Limitations on powers and immunities of executors and testamen-
tary trustees
(a) The attempted grant to an executor [or], testamentary trustee, or inter vivos trustee, or [the] his or her successor [of either], of any of the following enumerated powers or immunities is contrary to public policy:
(1) The exoneration of such fiduciary from liability for failure to exercise reasonable care, diligence and prudence.
(2) The power to make a binding and conclusive fixation of the value of any asset for purposes of distribution, allocation or otherwise.
(b) The attempted grant in any will or trust of any power or immunity in contravention of the terms of this section shall be void but shall not be deemed to render such will or trust invalid as a whole, and the remaining terms of the [will] instrument shall, so far as possible, remain effective.
(c) Any person interested in an estate or [testamentary] trust may contest the validity of any purported grant of any power [of] or immunity within the purview of this section without diminishing or affecting adversely his or her interest in the estate or trust[,] any provision in any will or trust to the contrary notwithstanding.
§ 2. This act shall take effect immediately and shall apply to all wills and trusts executed on or after its effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11695-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.