N.Y. Estates, Powers & Trusts Law § 3-3.7: Testamentary disposition to trustee under, or in accordance with

§ 3-3.7 Testamentary disposition to trustee under, or in accordance with

terms of existing inter vivos trust

(a) A testator may by will dispose of or appoint all or any part of

such testator's estate to a trustee of a trust, the terms of which are

evidenced by a written instrument executed by the testator, the testator

and some other person, or some other person, including a trust

established for the receipt of the proceeds of an annuity or pure

endowment contract, or of a thrift, savings, pension, retirement, death

benefit, stock bonus, or profit-sharing plan or system or a funded or

unfunded life, group life, industrial life or accident and health

insurance trust (although the person establishing such trust has

reserved any or all rights of ownership of the insurance contracts),

regardless of whether any assets have been transferred to the trust

prior to the death of the testator; provided that the trust instrument

is identified in the will and is executed by the person establishing the

trust prior to or contemporaneously with the execution of the will and,

unless such person is the sole trustee, by at least one trustee thereof

prior to the death of the testator, in the manner required by the laws

of this state for the recording of a conveyance of real property or, in

lieu thereof, in the presence of two witnesses who shall affix their

signatures to the trust instrument.

(b) The testamentary disposition or appointment is valid, even though:

(1) The trust instrument is amendable or revocable, or both, provided,

however, that the disposition or appointment shall be given effect in

accordance with the terms of the trust instrument, including an

amendment thereto, as they appear in writing on the date of the

testator's death and, where the testator so directs, including

amendments to the trust instrument after his or her death, if the

instrument evidencing such amendment is executed and acknowledged in the

manner provided for in paragraph (b) of 7-1.17.

(2) The right is reserved in such trust instrument (A) to exercise any

power over any property transferred to or held in the trust or (B) to

direct during the lifetime of the person establishing the trust or any

other person, the persons and organizations to whom or in whose behalf

the income shall be paid or the principal distributed.

(3) The trust instrument or any amendment thereto was not executed and

attested in accordance with the formalities prescribed by 3-2.1.

(c) The property so disposed of or appointed by will becomes a part of

the trust to which it is given, and title thereto vests in the trustee

to be administered and disposed of in accordance with the terms of the

trust instrument.

(d) Any disposition or appointment to the trustee made by a testator

who died prior to the effective date of this section, which would be

invalid under the applicable law of this state pre-existing the

effective date of this section, shall be construed to create a

testamentary trust under and in accordance with the terms of the trust

instrument which the testator originally intended should embrace the

property disposed of or appointed, as such terms appear in such trust

instrument at the date of the testator's death.

(e) A revocation or termination of the trust before the death of the

testator shall cause the disposition or appointment to fail, unless the

testator has made an alternative disposition.