BILL NUMBER: S10469
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the surrogate's court procedure act, in relation to
certain assignments to a transferee for value
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would amend the Surrogate's Court Procedure Act to provide for
the regulation of beneficiary funding
 
SUMMARY OF PROVISIONS:
Section One. Amends The surrogate's court procedure act by adding a new
section 1425
Section Two. Provides for the Effective Date
 
JUSTIFICATION:
Persons who are entitled to receive an inheritance from a decedent's
estate often encounter long waiting periods to receive their inheritance
while in probate court. The beneficiary funding services industry offers
payments in exchange for the assignment of a portion of an individual's
beneficial interests.
This legislation establishes a formal, transparent process for purchas-
ing a beneficiary's interest in a probate estate and codifies uniform
consumer protection standards governing these transactions to ensure
transparency, fairness, and accountability. The bill requires timely
court filing and notice, disclosure of fees and consideration, trans-
lated agreements where necessary, and prohibits abusive contractual
provisions that unfairly disadvantage beneficiaries. The legislation
also grants Surrogate's Courts authority to review these agreements to
ensure statutory compliance and protect estate beneficiaries from preda-
tory practices. The bill will provide the necessary guardrails to
protect New Yorkers.
 
PRIOR LEGISLATIVE HISTORY:
None
 
FISCAL IMPLICATIONS:
TBD
 
EFFECTIVE DATE:
This act shall take effect immediately