N.Y. Estates, Powers & Trusts Law § 11-a-4.9: Deferred compensation, annuities, and similar payments

§ 11-A-4.9 Deferred compensation, annuities, and similar payments

(a) In this section, "payment" means a payment that a trustee may

receive over a fixed number of years or during the life of one or more

individuals because of services rendered or property transferred to the

payer in exchange for future payments. The term includes a payment made

in money or property from the payer's general assets or from a separate

fund created by the payer, including a private or commercial annuity, an

individual retirement account, and a pension, profit-sharing,

stock-bonus, or stock-ownership plan.

(b) To the extent that a payment is characterized as interest or a

dividend or a payment made in lieu of interest or a dividend, a trustee

shall allocate it to income. The trustee shall allocate to principal the

balance of the payment and any other payment received in the same

accounting period that is not characterized as interest, a dividend, or

an equivalent payment.

(c) If no part of a payment is characterized as interest, a dividend,

or an equivalent payment, and all or part of the payment is required to

be made, a trustee shall allocate to income ten percent of the part that

is required to be made during the accounting period and the balance to

principal. If no part of a payment is required to be made or the payment

received is the entire amount to which the trustee is entitled, the

trustee shall allocate the entire payment to principal. For purposes of

this paragraph, a payment is not "required to be made" to the extent

that it is made because the trustee exercises a right of withdrawal.

(d) If, to obtain an estate tax marital deduction for a trust, a

trustee must allocate more of a payment to income than provided for by

this section, the trustee shall allocate to income the additional amount

necessary to obtain the marital deduction.

(e) This section does not apply to payments to which 11-A-4.10

applies.