What's happening
This bill prohibits the use of waiver of probate forms to claim assets from a deceased person's account, requiring formal estate proceedings.
Why it matters
Increases oversight and court involvement in asset transfers after death,. closing a loophole where heirs or beneficiaries could previously access accounts using a simple waiver form, potentially reducing the risk of fraud or disputes.
Ensures that transfer agents (banks, credit unions, brokerages, etc.) cannot bypass formal estate proceedings,. requiring official probate processes before releasing assets, which may lengthen the time it takes to access inherited funds but adds legal safeguards.
Prevents even notarized or medallion-guaranteed waiver forms from being used as evidence of entitlement,. making it harder for someone to falsely claim assets or for heirs to inadvertently waive legal protections.
Applies universally to all New York residents at time of death,. meaning families, beneficiaries, and financial institutions will need to understand and comply with stricter procedures for settling estates, potentially impacting how people plan their inheritance and estate documentation.
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Who cares
Headline styles
No Probate Waivers for Transfers
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 32
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6261
2019-2020 Regular Sessions
IN SENATE
May 30, 2019
Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the surrogate's court procedure act, in relation to prohibiting the use of a waiver of probate form
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The surrogate's court procedure act is amended by adding a new section 1409-a to read as follows: § 1409-a. Waiver of probate form prohibited
1. For purposes of this section, the following terms shall have the following meanings: (a) "Waiver of probate" shall mean a sworn document executed by any deceased person's heirs and/or beneficiaries of a last will and testament and presented to a transfer agent to bring a claim of entitlement in an account or accounts of such deceased person bypassing formal estate proceedings as required by law.
(b) "Transfer agent" shall mean a trust company, bank, credit union, or brokerage firm who maintains records of investors and works to execute the transfer of holdings within an account, either at the request of such investors or at the direction of a court order or proceeding.
(c) "Account" shall have the same meaning as set forth in subdivision one of section two of the state finance law.
2. The use of a waiver of probate shall be deemed prohibited in the state. No transfer agent shall accept an executed waiver of probate from a deceased person's heirs or beneficiaries of such deceased person's last will and testament as proof of entitlement to a certain asset or assets in order to facilitate the transfer of such asset or assets bypassing formal estate proceedings as required by law.
3. No transfer agent shall accept a waiver of probate, even if such waiver of probate is affixed with a valid medallion signature guarantee from any financial institution authorized to provide such guarantee. No
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11445-01-9
S. 6261 2
waiver of probate shall be deemed as supporting evidence of a person's claim of entitlement to an asset or assets or to verify a person's identity and/or relationship to a deceased owner of an asset or assets.
4. This section shall apply to all persons who shall at the time of death be a resident of the state.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the surrogate's court procedure act, in relation to prohibiting the use of a waiver of probate form
Purpose or general idea of bill
This bill would prohibit the usage of a waiver of probate to transfer an inheritance, and prohibit a transfer agent from accepting a waiver of probate on behalf of a New York decedent.
Summary of provisions
Section 1: Amends the Surrogate's Court Procedure Act by adding a new section 1409-a. This section prohibits the usage of a waiver of probate by any deceased person's heirs and/or beneficiaries of an estate, and prohibits any transfer agent from accepting a waiver of probate on behalf of a New York decedent.
Section 2: The effective date of this bill.
Justification
Currently transfer agents of publically traded corporations, like Apple, Google and Amazon, distribute decedent assets with only a sworn affida- vit and without going through formal estate proceedings that will result in documentation from the courthouse appointing a fiduciary on behalf of a New York decedent. The effect of this practice is that the surrogate court system is often completely sidestepped and family members entitled to some of the inheritance are left out of the distribution of the decedent's estate. By prohibiting this practice in New York, this bill seeks to make sure that family members and beneficiaries of a decedent's estate get what they are entitled to and are not unfairly left out of the inheritance. Consequently, this bill will generate increased reven- ue for the State through new filing fees that will be collected given that the surrogate court system is sidestepped in estate matters by transfer agents. Lastly, this bill empowers the family members with the ability to look in a public court record for information about a deceased family member, and allows creditors, such as Medicaid, to file claims and get reimbursed for services rendered to the decedent.
Prior legislative history
New Bill
Fiscal implications for state and local governments
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.