A 8300: Relates to the computation and allocation of the commissions of trustees of charitable trusts.

  
  STATE OF NEW YORK ________________________________________________________________________ 8300 2025-2026 Regular Sessions  IN ASSEMBLY May 12, 2025 ___________ Introduced by M. of A. McMAHON -- (at request of the Unified Court System) -- read once and referred to the Committee on Judiciary AN ACT to amend the surrogate's court procedure act, in relation to the computation and allocation of the commissions of trustees of charita- ble trusts; and to repeal certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 3 of section 2308 of the surrogate's court 2 procedure act, as amended by chapter 601 of the laws of 2019, is amended 3 to read as follows: 4 3. Unless the will or lifetime trust instrument otherwise explicitly 5 provides, the annual commissions allowed by [subdivision two of] this 6 section shall be payable one-third from the income of the trust [or of 7 the property subject to the power in trust] and two-thirds from the 8 principal of the trust [or from the property subject to the power in 9 trust]. However, in the case of a trust whose definition of income is 10 governed by section 11-2.4 of the estates, powers and trusts law, such 11 annual commissions shall be payable from the corpus of any such trust 12 after allowance for the annuity or unitrust [amount] amounts and shall 13 not be payable out of such annuity or unitrust amount and shall not be 14 payable out of such unitrust amount. 15 § 2. Paragraphs (a) and (b) of subdivision 5 of section 2308 of the 16 surrogate's court procedure act, as amended by chapter 601 of the laws 17 of 2019, are amended to read as follows: 18 (a) During the continuance of a trust created solely for public, reli- 19 gious, charitable, scientific, literary, educational or fraternal uses 20 and during the period of continuance of such a trust established after 21 the termination of a life use or uses the trustee shall be entitled to 22 and may retain annual commissions [from income in an amount annually 23 equal to 6 per cent of income collected in each year] according to the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09812-01-5 
 A. 8300 2 1 terms specified in subdivision 2 of this section, but only to the extent 2 of 80 percent of the rates stated therein. Notwithstanding any 3 other provision of law, with respect to any portion of such trust 4 which exceeds a principal value of twenty million dollars, the trustee 5 may only take annual commissions to the extent of 50 percent of the rate 6 specified in paragraph (c) of subdivision 2 of this section. 7 (b) In the case of a trust [created solely for public, religious, 8 charitable, scientific, literary, educational or fraternal uses the] 9 described in paragraph (a) of this subdivision, a trustee shall not be 10 entitled to any commission from principal as specified in subdivision 1 11 of this section for paying out principal. 12 § 3. Paragraph (c) of subdivision 6 of section 2308 of the surrogate's 13 court procedure act is REPEALED. 14 § 4. Subdivision 12 of section 2308 of the surrogate's court procedure 15 act, as amended by chapter 601 of the laws of 2019, is amended to read 16 as follows: 17 12. If a trustee of a trust [or donee of a power in trust] is author- 18 ized or required by the terms of the will to accumulate income for any 19 purpose permitted by law, any income so accumulated which is not added 20 to principal of the trust [or to the principal of the property subject 21 to the power in trust] shall be deemed a separate trust [or separate 22 fund subject to the power in trust] for purposes of this subdivision and 23 the trustee [or donee of the power in trust] shall be entitled to 24 commissions in respect thereof at the rates and according to the terms 25 and provisions of subdivisions 1 [and], 2 and 5 of this section as 26 though, for purposes of computing commissions of the trustee, income so 27 accumulated was principal. 28 § 5. Subdivision 3 of section 2309 of the surrogate's court procedure 29 act, as amended by chapter 601 of the laws of 2019, is amended to read 30 as follows: 31 3. Unless the will or lifetime trust instrument otherwise explicitly 32 provides, the annual commissions allowed by [subdivision 2] this section 33 shall be payable one-third from the income of the trust [or property 34 subject to the power in trust] and two-thirds from the principal of the 35 trust [or property subject to the power in trust]. However, in the case 36 of a trust whose definition of income is governed by section 11-2.4 of 37 the estates, powers and trusts law or a charitable remainder annuity 38 trust or a charitable remainder unitrust, as defined in section six 39 hundred sixty-four of the Internal Revenue Code of nineteen hundred 40 eighty-six, as amended, such annual commissions shall be payable from 41 the corpus of any such trust after allowance for the annuity or unitrust 42 amounts and shall not be payable out of such annuity or unitrust 43 amounts. 44 § 6. Paragraphs (a) and (b) of subdivision 5 of section 2309 of the 45 surrogate's court procedure act, as amended by chapter 601 of the laws 46 of 2019, are amended to read as follows: 47 (a) During the continuance of a trust created solely for public, reli- 48 gious, charitable, scientific, literary, educational or fraternal uses 49 and during the period of continuance of such a trust established after 50 the termination of a life use or uses the trustee shall be entitled to 51 and may retain annual commissions [from income in an amount annually 52 equal to 6 per cent of income collected in each year] according to the 53 terms specified in subdivision 2 of this section, but only to the extent 54 of 80 percent of the rates stated therein. Notwithstanding any other 55 provision of law, with respect to any portion of such trust which 56 exceeds a principal value of twenty million dollars, the trustee may 
 A. 8300 3 1 only take annual commissions to the extent of 50 percent of the rate 2 specified in paragraph (c) of subdivision 2 of this section. 3 (b) In the case of a trust [created solely for public, religious, 4 charitable, scientific, literary, educational or fraternal uses the] 5 described in paragraph (a) of this subdivision, a trustee shall not be 6 entitled to any commission from principal as specified in subdivision 1 7 of this section for paying out principal. 8 § 7. Paragraphs (a) and (b) of subdivision 3 of section 2312 of the 9 surrogate's court procedure act, as amended by chapter 601 of the laws 10 of 2019, are amended to read as follows: 11 (a) during the continuance of a trust created solely for public, reli- 12 gious, charitable, scientific, literary, educational or fraternal uses 13 and during the period of continuance of such a trust established after 14 the termination of a life use or uses a corporate trustee, except as 15 provided in paragraph (b) of this subdivision, shall be entitled to and 16 may retain annual commissions [from income] in accordance with the 17 provisions of subdivision 1 or 2 [hereof] of this section, as the case 18 may be. 19 (b) In the case of a trust created solely for public, religious, char- 20 itable, scientific, literary, educational or fraternal uses a corporate 21 trustee shall not be entitled to any commission [from] for paying out 22 principal. 23 § 8. This act shall take effect on the sixtieth day after it shall 24 have become a law and shall apply to all trusts in existence on or after 25 such effective date; provided, however, that a trustee of a trust in 26 existence on such effective date may elect to continue to take commis- 27 sions under the law in effect prior to such effective date until Decem- 28 ber 31 of the year this act takes effect.