Bill > A01387

This bill amends the New York estates, powers and trusts law to provide a legal presumption about how "credit shelter bequests" (a type of estate planning provision that allows the maximum amount of assets to be transferred tax-free) should be interpreted. Specifically, for residents of New York who die after March 31, 2025, if a will, trust, or beneficiary designation contains a formula for transferring the maximum amount of property shielded from federal estate taxes, that formula will now be automatically understood to refer to the maximum amount that can be shielded from both federal and New York state estate taxes, unless the document explicitly states otherwise. The bill also preserves the right of interested parties to seek a court order construing the decedent's true intent or challenging this presumption. This change is designed to provide more clarity and certainty in estate planning by establishing a default interpretation for tax-related bequest formulas that considers both federal and state estate tax exemptions.

Justice

https://www.nysenate.gov/legislation/bills/2025/A1387