NY Est Pow & Trusts L § 13-3.3 (2021)
2021 New York Laws EPT - Estates, Powers and Trusts Article 13 - Other Provisions Affecting Estates Part 3 - Miscellaneous Provisions 13-3.3 - Designation of Trustee to Receive Proceeds of Thrift, Savings, Pension, Retirement, Death Benefit, Stock Bonus and Profit-Sharing Plans, Systems or Tr

§ 13-3.3 Designation  of trustee to receive proceeds of thrift, savings,            pension,  retirement,  death   benefit,   stock   bonus   and            profit-sharing plans, systems or trusts, of life, group life,            industrial life or accident and health insurance policies and            of  annuity,  endowment and supplemental insurance contracts,            and taxation thereof  (a) The  proceeds  of  thrift,  savings,  pension,  retirement,  death benefit,  stock  bonus  and  profit-sharing plans, systems or trusts, of life, group life, industrial  life  or  accident  and  health  insurance policies  and of annuity, endowment and supplemental insurance contracts (hereinafter referred to as "proceeds") may be made payable to a trustee designated as beneficiary in the manner prescribed by this  section  and named as:  (1)  Trustee  under  a  trust  agreement  or  declaration  of trust in existence at the date  of  such  designation,  and  identified  in  such designation, and such proceeds shall be paid to such trustee and be held and  disposed of in accordance with the terms of such trust agreement or declaration of trust, including any amendments thereto, as  they  appear in  writing  on  the  date  of  the  death  of  the insured, employee or participant. It shall not be necessary to the validity of any such trust agreement or declaration of trust that it have a trust corpus other than the right of the trustee as beneficiary to receive such proceeds.  (2)  Trustee  of  a  trust  to  be  established  by  will,  and   upon qualification and issuance of letters of trusteeship such proceeds shall be  payable to the trustee to be held and disposed of in accordance with the terms of such will as a testamentary trust. A designation  which  in substance  names  as  such beneficiary the trustee under the will of the insured, employee or participant, shall be taken to refer to the will of such person actually admitted to probate,  whether  executed  before  or after the making of such designation.  (b)  If  no qualified trustee claims such proceeds from the insurer or other payor within eighteen months  after  the  death  of  the  insured, employee or participant, or if satisfactory evidence is furnished to the insurer  or other payor within such period showing that there is or will be no trustee to receive such proceeds, such proceeds shall be  paid  by the  insurer or other payor to the personal representative or assigns of the insured, employee  or  participant,  unless  otherwise  provided  by agreement  with  the  insurer  or other payor during the lifetime of the insured, employee or participant.  (c) Except to the extent otherwise provided by  the  trust  agreement, declaration of trust or will, proceeds received by the trustee shall not be  subject to the debts of the insured, employee or participant, to any greater extent than if such proceeds were payable to  the  beneficiaries named  in  the  trust, and for all purposes including transfer or estate tax purposes they shall not be deemed payable to or for the  benefit  of the estate of the insured, employee or participant.  (d)  Proceeds so held in trust may be commingled with any other assets which may properly become part of such trust.  (e)  Nothing  in  this  section  shall  effect  the  validity  of  any designation  heretofore  made  of  the  trustee of any trust established under a trust agreement or declaration of trust or by will.  (f) This section shall be construed as declaring the law as it existed prior to its enactment and not as modifying it.