NY A09857

Adds new section 2-1.13 to the Estates, Powers and Trusts Law to clarify how formula clauses in wills and trusts are interpreted for decedents dying after December 31, 2009 and before January 1, 2011.

Directs that estate tax formula clauses referencing unified credit, exemption amounts, marital deduction, or similar terms shall refer to federal estate tax law as it applied on December 31, 2009.

Directs that generation-skipping transfer tax formula clauses referencing GST exemption, direct skip, or similar terms shall refer to federal GST tax law as it existed on December 31, 2009.

Allows executors, trustees, or interested parties to bring a proceeding within 12 months of death to determine whether the decedent intended different tax treatment, with extrinsic evidence permitted.

Excludes from this rule any wills or trusts executed or amended after December 31, 2009, or those manifesting intent that contrary rules apply if no federal estate or GST tax is in effect on the decedent's death date.