BILL NUMBER: S4549
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: Amends the general obligations law by adding section 5-1515,
which relates to a duty for trustees and beneficiaries to notify others
when executing a power of attorney (POA) that impacts a trust. If a
trustee signs a POA granting an agent authority over the trust and the
agent is not a co-trustee, the trustee must make a good faith effort to
notify all co-trustees in writing and disclose the agent's identity.
Similarly, if a beneficiary signs a POA and the agent is not a co-bene-
ficiary, the beneficiary must notify all co-beneficiaries in writing. If
a co-beneficiary cannot be identified or contacted after reasonable
efforts, the principal must attest to the attempts made.
Section 2: Sets Effective Date.
 
JUSTIFICATION:
This bill provides essential protections for trustees and beneficiaries
in financial matters where they share a trust or financial agreement
with others. Currently, a trustee or beneficiary can execute a power of
attorney (POA) with a third party without notifying co-trustees or
co-beneficiaries, creating a risk that an unauthorized agent could
deplete the trust or financial assets. Therefore, this legislation
mandates that any trustee or beneficiary who grants a POA must notify
all co-trustees and co-beneficiaries in writing, ensuring transparency
and safeguarding shared financial interests. If a principal cannot iden-
tify or contact a co-beneficiary despite making good-faith efforts, they
must formally attest to their attempts. By implementing this require-
ment, the bill enhances accountability and prevents potential financial
exploitation within shared trusts and financial agreements.
 
LEGISLATIVE HISTORY:
Senate
2021: N/A
2022: S8892, Vetoed Memo.11l
2023: S3503A, Advanced to Third Reading
2024: S3503A, Advanced to Third Reading
Assembly
2021: A4601, Referred to Judiciary
2022: A4601, Vetoed Memo.11l
2023: No Assembly Same-As
2024: No Assembly Same-As
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law.