BILL NUMBER: S3503A
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the general obligations law, in relation to requiring
principals and beneficiaries to notify co-trustees and co-beneficiaries
of the signing of a power of attorney
 
PURPOSE:
To provide more transparency in certain financial matters.
 
SUMMARY OF PROVISIONS:
Section 1: When a principal who is a trustee of a trust, signs a power
of attorney which allows the agent to affect such trust and the agent is
not a co-trustee of such trust, the principal shall notify in writing
all other co-trustees of the signing of a power of attorney and identify
the person assigned as the principal's agent.
When a principal who is a beneficiary of a trust, signs a power of
attorney and the agent is not a co-beneficiary of such trust, the prin-
cipal shall notify in writing all other co-beneficiaries of the signing
of a power of attorney and identify the person assigned as the princi-
pal's agent.
Section 2: Sets effective date.
 
JUSTIFICATION:
This bill will protect trustees and/or beneficiaries in particular
financial matters where said trustee/beneficiary is a co-trustee and/or
co-beneficiary. In instances where you share an account/trust/etc. with
another trustee and/or beneficiary, the other trustee/beneficiary could
create a power of attorney with a non-party. Without any notice, that
non-party could then perhaps raid the trust or financial agreement, thus
taking all funds. This bill would require notice to all trustees and/or
beneficiaries when one member of the financial agreement enters into a
power of attorney. If the principal cannot identify or contact a co-be-
neficiary after good faith efforts were made, the principal must attest
to the efforts made to identify and/or contact co-beneficiaries.
 
LEGISLATIVE HISTORY:
Senate
2021-2022: S8892, Vetoed memo 111
Assembly
2021-2022: A4601, Vetoed memo 111
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the thirteenth day after it shall have
become a law.