N.Y. Estates, Powers & Trusts Law § 7-1.11: Application of principal to creator of trust as reimbursement

§ 7-1.11 Application of principal to creator of trust as reimbursement

for taxes

(a) Notwithstanding any contrary provision of law, the trustee of an

express trust, unless otherwise provided in the disposing instrument,

may, from time to time, pay from principal to the creator of such trust

an amount equal to any income taxes on any portion of the trust

principal with which he is charged.

(b) The provisions of this section do not apply to any trust by which

a future estate is indefeasibly vested in the United States or a

political subdivision for exclusively public purposes; a corporation

organized exclusively for religious, charitable, scientific, literary or

educational purposes, including the encouragement of art and the

prevention of cruelty to children or animals, no part of the net

earnings of which inures to the benefit of any private shareholder or

individual, and no substantial part of the activities of which is

carrying on propaganda or otherwise attempting to influence legislation;

a trustee, or a fraternal society, order or association operating under

the lodge system, provided the principal or income of such trust is to

be used by such trustee or by such fraternal society, order or

association exclusively for religious, charitable, scientific, literary

or educational purposes, or for the prevention of cruelty to children or

animals, and no substantial part of the activities of such trustee or of

such fraternal society, order or association is carrying on propaganda

or otherwise attempting to influence legislation; or any veteran's

organization incorporated by Act of Congress, or of its department or

local chapters or posts, no part of the net earnings of which inures to

the benefit of any private shareholder or individual.