§ 7-1.5 When trust interest inalienable; exception\n (a) The interest of the beneficiary of any trust may be assigned or\notherwise transferred, except that:\n (1) The right of a beneficiary of an express trust to receive the\nincome from property and apply it to the use of or pay it to any person\nmay not be transferred by assignment or otherwise unless a power to\ntransfer such right, or any part thereof, is conferred upon such\nbeneficiary by the instrument creating or declaring the trust.\n (2) The proceeds of a life insurance policy which, under a trust or\nother agreement, are upon the death of the insured left with the\ninsurance company may not be (A) transferred, (B) subject to commutation\nor encumbrance or (C) subject to legal process except in an action for\nnecessaries, if provisions to such effect were incorporated in such\ntrust or other agreement.\n (b) Notwithstanding subparagraph (a) (1):\n (1) The beneficiary of an express trust to receive income from\nproperty and apply it to the use of or pay it to any person may, unless\notherwise provided in the instrument creating or declaring such trust,\ntransfer any amount in excess of ten thousand dollars of the annual\nincome to which the beneficiary is entitled from such trust to the\nspouse, issue, ancestors, brothers, sisters, uncles, aunts, nephews or\nnieces of the beneficiary, or to a trustee, committee, conservator,\ncurator, custodian, guardian of the property of a minor, or the donee of\na power during minority for the benefit only of any such person bearing\nsuch relationship to the beneficiary, provided that such transfer is\nevidenced by a written instrument signed and acknowledged by the\nbeneficiary and delivered to the trustee of the trust, together with an\naffidavit by the beneficiary that such transfer and any like transfer\nconcurrently in effect are for all or part of the excess over ten\nthousand dollars of the annual income from such trust to which such\nbeneficiary is entitled, and that he has not received and is not to\nreceive any consideration in money or money's worth for the transfer.\n (2) Any such transfer shall be effective in any year only as to income\nfrom such trust in excess of ten thousand dollars, and for this purpose\nall previous like transfers applicable to a given year shall be taken\ninto account. In the event that two or more transfers are made in or for\nany year in a total amount exceeding the income from such trust properly\ntransferable hereunder, transferees shall be preferred in the order in\nwhich the instruments of transfer were delivered to the trustee.\n (3) A trustee shall be exonerated and fully discharged for any payment\nmade to a transferee in reliance on the affidavit of a beneficiary\ndescribed in subparagraph (1).\n (4) The provisions of this paragraph do not apply to subparagraph (a)\n(2):\n (c) A transferee of income may, if he has not received or is not to\nreceive any consideration in money or money's worth therefor, make a\nfurther transfer of such income only to one or more of the permissible\ntransferees referred to in subparagraph (b) (1), other than a prior\ntransferor; provided, however, that upon the death of a transferee any\nincome not so transferred by him shall be an asset of his estate,\nsubject to his testamentary disposition or passing to his distributees\nunder the statutes of descent and distribution.\n (d) The beneficiary of an express trust to receive the income from\nproperty and apply it to the use of or pay it to any person is not\nprecluded by anything contained in this section from transferring or\nassigning any part or all of such income to or for the benefit of\npersons whom the beneficiary is legally obligated to support.\n
‹ 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.