§ 7-1.13 Division of trusts and establishment of separate trusts\n (a) Notwithstanding any contrary provision of law, unless expressly\nprohibited by the terms of the disposing instrument:\n (1) the trustee of an express trust (which term as defined in\nparagraph (g) of this section may mean the executor or administrator) is\nauthorized without prior court approval or the consent of the persons\ninterested to establish two or more separate trusts in order to\nsegregate for any of the following purposes:\n (A) property held in trust in which a spouse or surviving spouse has a\nqualifying income interest with respect to which an election has been or\nwill be made in whole or in part under section 2056(b)(7), 2056A or\n2523(f) of the United States Internal Revenue Code of 1986 from property\nwith respect to which no election has been or will be made;\n (B) property held in trust with respect to which a marital deduction\nunder section 2056 or 2523 of the United States Internal Revenue Code\nwould be available, by election or otherwise, from property held in\ntrust for persons other than the spouse or surviving spouse, so that one\nor more of such separate trusts qualify for the deduction under said\nsections;\n (C) property held in trust with respect to which a charitable\ndeduction under section 2055 or 2522 of the United States Internal\nRevenue Code would be available from property held in trust for persons\nnot described in said sections, so that one or more of such separate\ntrusts qualify for the deduction under said sections;\n (D) property held in trust which is or would be excepted, excluded or\nexempt from or under Chapter 13 (tax on generation-skipping transfers)\nof the United States Internal Revenue Code from such property which is\nnot so excepted, excluded or exempt, so that one or more of such\nseparate trusts will have an inclusion ratio of zero, or so that one or\nmore of such separate trusts qualify for the grandchild exception under\nsection 1433(b)-(d) of the Tax Reform Act of 1986, as amended;\n (E) property held in trust for one (of two or more beneficiaries) from\nproperty held in trust for such other beneficiaries, so that one or more\nof such separate trusts shall be a qualified subchapter S trust under\nsection 1361(d) of the United States Internal Revenue Code;\n (F) property transferred in trust by a creator (including but not\nlimited to a transfer treated as made by a spouse by reason of section\n2513 of the United States Internal Revenue Code) from property\ntransferred in trust by one or more different creators; and\n (G) property transferred in trust by a creator (including but not\nlimited to a transfer treated as made by a spouse by reason of section\n2513 of the United States Internal Revenue Code) pursuant to a disposing\ninstrument from property transferred by the same creator pursuant to\nanother disposing instrument;\n (2) the trustee of an express trust may divide such trust into two or\nmore separate trusts, with the consent of all persons interested in the\ntrust but without prior court approval, for any reason which is not\ndirectly contrary to the primary purpose of the trust; and\n (3) the court having jurisdiction of an express trust, upon the\npetition of the trustee or of any person interested in the trust and\nupon notice to all such persons, may direct the establishment of two or\nmore separate trusts for any reason not directly contrary to the primary\npurpose of the trust.\n (b) Unless the court otherwise directs, the trusts established under\nthis section shall be deemed to have been established as of the\neffective date of the disposing instrument; provided that the\nestablishment of separate trusts under subparagraph two of paragraph (a)\nof this section may become effective upon the date or dates provided in\nthe instrument filed under paragraph (e) of this section.\n (c) Except as implicit in the establishment of separate trusts\nauthorized by this section, t
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.