NY A01387

Amends the Estates, Powers and Trusts Law to add a new section governing the interpretation of "credit shelter" or "formula" clauses in wills, trusts, and beneficiary designations

Applies to New York residents who die after March 31, 2025, whose estate documents contain formulas designed to maximize the amount sheltered from federal estate tax

Creates a presumption that such formula clauses refer to the maximum amount that can be sheltered from both federal estate tax and New York state estate tax, rather than federal tax alone

Allows estate documents to override this presumption if they specifically reference this section of law

Preserves the right to bring legal proceedings to determine the decedent's actual intent or to override the statutory presumption