A 1387: Provides a presumption that credit shelter bequests be construed to set aside the maximum amount that may be shielded from both federal and state estate taxes.
The bill aims to amend the Estates, Powers and Trusts Law in New York to provide a presumption that credit shelter bequests be construed to set aside the maximum amount that may be shielded from both federal and state estate taxes. This presumption applies to bequests made after March 31, 2025, and passes or is acquired through a will, trust, or beneficiary designation that contains a formula for a bequest or other disposition of the maximum amount of property that can be sheltered from federal estate tax. The formula will be deemed to refer to the maximum amount of property that can be sheltered from both federal and state estate tax by reason of the applicable credit amount allowable against each tax liability. However, this presumption can be overridden if a proceeding seeks to construe the decedent's intent or to override the presumption. The bill takes effect immediately.
| Jan. 07, 2026 | referred to judiciary |
| Jan. 09, 2025 | referred to judiciary |
STATE OF NEW YORK ________________________________________________________________________ 1387 2025-2026 Regular Sessions IN ASSEMBLY January 9, 2025 ___________ Introduced by M. of A. DINOWITZ -- read once and referred to the Commit- tee on Judiciary AN ACT to amend the estates, powers and trusts law, in relation to providing a presumption that credit shelter bequests be construed to set aside the maximum amount that may be shielded from both federal and state estate taxes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The estates, powers and trusts law is amended by adding a 2 new section 2-1.12-a to read as follows: 3 § 2-1.12-a Application of formula clause 4 (a) If: (i) a decedent who is a resident of New York state dies after 5 March thirty-first, two thousand twenty-five; and 6 (ii) by reason of the death of such decedent, property passes or is 7 acquired from such decedent under a will, a trust or a beneficiary 8 designation which contains a formula providing, in sum or substance, for 9 a bequest or other disposition of the maximum amount of property that 10 can be sheltered from federal estate tax by reason of available credits 11 against such tax; then, unless the governing instrument specifically 12 provides otherwise by referring to this section, such formula shall be 13 deemed to refer to the maximum amount of property, if any, that can be 14 sheltered from both federal estate tax and New York state estate tax by 15 reason of the applicable credit amount allowable against each of the 16 federal estate tax liability and the New York state estate tax liabil- 17 ity. 18 (b) Notwithstanding paragraph (a) of this section, nothing in this 19 section shall be deemed to preclude a proceeding from being brought that 20 seeks an order: (i) construing the decedent's intent concerning the 21 effect of a formula bequest or other disposition contained in a will, 22 trust or beneficiary designation, or 23 (ii) overriding the presumption set forth in subparagraph (ii) of 24 paragraph (a) of this section. 25 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03160-01-5