What's happening
This bill expands limitations on exoneration and valuation powers to include inter vivos trustees, not just executors and testamentary trustees.
Why it matters
Extends accountability to living (inter vivos) trustees. The bill ensures that the same legal limitations and responsibilities currently applied to executors and testamentary trustees now also apply to trustees of living trusts, making it harder for them to avoid liability for negligence or mismanagement.
Closes loopholes in trust and estate management. By including inter vivos trustees, the bill prevents trust documents from granting excessive powers or immunities (like self-exoneration clauses or the ability to unilaterally set asset values) that could harm beneficiaries or other interested parties.
Expands protections for beneficiaries and interested parties. Any person with an interest in an estate or trust can now challenge improper grants of power or immunity to all types of fiduciaries (not just those under wills), without risking their share or rights.
Applies prospectively to new wills and trusts. The changes apply only to documents executed after the effective date, so existing trusts and wills are not retroactively impacted, providing clarity for future estate planning.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Limit Executor Legal Immunity
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 42
No co-sponsors yet.
History
- Substituted by A10100
- Advanced to third reading
- 2nd report cal.
- 1st report cal.810
- Referred to judiciary
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1133
- 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 and Trustee Powers
Signed by Governor · Sponsor Jeffrey Dinowitz
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6138
2017-2018 Regular Sessions
IN SENATE
May 11, 2017
Introduced by Sen. BONACIC -- read twice and ordered printed, and when printed to be committed 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.
Sponsor's memo
Title of bill
An act to amend the estates, powers and trusts law, in relation to limitations on powers and immunities of executors and testamentary trustees
Purpose
This legislation amends the EPTL to add inter vivos trusts to current law to prohibit inter vivos trustees from having exoneration clauses for failure to exercise reasonable care.
Summary of specific provisions
Amends Section 11-1.7 of the Estates, Powers and Trusts Law to include inter vivos trustees.
Justification
An inter vivos trust is a living trust. Current law only includes executors and testamentary trustees from being able to enumerate powers or immunities that provide for exoneration of such fiduciary from liability for failure to exercise reasonable care. Executors, testamentary trustees, and inter vivos trustees are held to the same standard of absolute, undivided loyalty to the beneficiaries whom they serve, public policy necessitates that they be treated similarly, especially in the context of exoneration clauses. Due to the fact inter vivos trustees are not included, courts have reached divergent views concerning the enforceability of exoneration clauses in lifetime trust instruments.
Legislative history
New bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.