2023 New York Laws › EPT - Estates, Powers and Trusts › Article 2 - Rules Governing Dispositions Subject to This Law › Part 1 - Substantive Rules Governing Dispositions › 2-1.13 - Certain Formula Clauses to Be Construed to Refer to the Federal Estate and Generation-Skipping Transfer Tax Laws Applicable to Estates of Decedents Dying After December Thirty-First, Two Thousand Nine and Before January First, Two Thousand Eleven

§ 2-1.13 Certain formula clauses to be construed to refer to the federal
estate  and  generation-skipping transfer tax laws applicable
to estates of decedents dying  after  December  thirty-first,
two  thousand  nine  and  before  January first, two thousand
eleven
(a)(1) If by reason of the death of a decedent property passes  or  is
acquired  under a beneficiary designation, a will or trust of a decedent
who dies after December  thirty-first,  two  thousand  nine  and  before
January  first,  two  thousand  eleven, that contains a bequest or other
disposition based upon the amount of property that can be sheltered from
federal estate tax by referring to the  "unified  credit",  "estate  tax
exemption",   "applicable   exclusion   amount",  "applicable  exemption
amount",  "applicable  credit  amount",  "marital  deduction",  "maximum
marital   deduction",   "unlimited   marital   deduction",   "charitable
deduction", "maximum charitable deduction" or similar words  or  phrases
relating  to  the  federal  estate  tax,  or that measures a share of an
estate or trust based on the amount that can pass free of federal estate
taxes, or that is otherwise based on  a  similar  provision  of  federal
estate  tax  then  such  beneficiary designation, will or trust shall be
deemed to refer to the federal estate tax law as applied with respect to
decedents dying in two thousand ten, regardless of whether  an  election
is made not to have the federal estate tax apply to a particular estate.
(2)  If  by  reason  of  the death of a decedent property passes or is
acquired under a beneficiary designation, a will or trust of a  decedent
who  dies  after  December  thirty-first,  two  thousand nine and before
January first, two thousand eleven, that contains  a  bequest  or  other
disposition based upon the amount of property that can be sheltered from
federal   generation-skipping   transfer   tax   by   referring  to  the
"generation-skipping   transfer   tax   exemption",   "GST   exemption",
"generation-skipping  transfer  tax",  "GST  tax"  or  similar  words or
phrases that measures a share of an estate or trust based on the  amount
that  can  pass  free  of federal generation-skipping transfer taxes, or
that  is  otherwise  based   on   a   similar   provision   of   federal
generation-skipping transfer tax law, then such beneficiary designation,
will   or   trust   shall   be   deemed   to   refer   to   the  federal
generation-skipping transfer tax law in  effect  in  two  thousand  ten,
regardless of whether an election is made not to have the federal estate
tax apply to a particular estate.
(3)  This paragraph shall not apply to a beneficiary designation, will
or trust that manifests an intent that a contrary rule shall apply.
(b)  The  executor,  trustee  or  other  interested  person  under   a
beneficiary  designation,  will or trust referred to in paragraph (a) of
this section may bring a proceeding to determine whether the beneficiary
designation, will or trust manifests a  contrary  intention  within  the
meaning  of  subparagraph three of paragraph (a) of this section. In any
such proceeding, extrinsic evidence may be  admitted  to  establish  the
decedent's intent.
(c)  Any proceeding described in paragraph (b) of this section must be
commenced by the date which is (1) twenty-four months following the date
of death of  the  decedent,  testator  or  grantor  or  (2)  six  months
following  the  day  on  which  the  chapter of the laws of two thousand
eleven which amended this paragraph became  a  law,  whichever  date  is
later,  and  not  at any time thereafter. Notwithstanding the foregoing,
the time  to  commence  such  a  proceeding  may  be  extended,  in  the
discretion  of  the court, on a petition showing reasonable cause and on
notice to such persons and in such manner as the court may direct.