N.Y. Surrogate's Court Procedure Act § 2218: Deposit in court for benefit of legatee, distributee or beneficiary

§ 2218. Deposit in court for benefit of legatee, distributee or

beneficiary. 1. (a) Where it shall appear that a noncitizen legatee,

distributee or beneficiary is domiciled or resident within a country to

which checks or warrants drawn against funds of the United States may

not be transmitted by reason of any executive order, regulation or

similar determination of the United States government or any department

or agency thereof, the court shall direct that the money or property to

which such noncitizen would otherwise be entitled shall be paid into

court for the benefit of said noncitizen or the person or persons who

thereafter may appear to be entitled thereto. The money or property so

paid into court shall be paid out only upon order of the surrogate or

pursuant to the order or judgment of a court of competent jurisdiction.

(b) Any assignment of a fund which is required to be deposited

pursuant to the provisions of paragraph one (a) of this section shall

not be effective to confer upon the assignee any greater right to the

delivery of the fund than the assignor would otherwise enjoy.

2. Where it shall appear that a beneficiary would not have the benefit

or use or control of the money or other property due him or where other

special circumstances make it desirable that such payment should be

withheld the decree may direct that such money or property be paid into

court for the benefit of the beneficiary or the person or persons who

may thereafter appear entitled thereto. The money or property so paid

into court shall be paid out only upon order of the court or pursuant to

the order or judgment of a court of competent jurisdiction.

2-a. Where it appears to the court that the laws of a foreign country

or sovereignty effectively deny a New York state resident beneficiary

legatee or distributee of the benefit, use or control of money or other

property, a decree issued in a matter concerning the right of a resident

of such foreign country or sovereignty to the benefit, use or control of

money or other property with a situs in New York state may direct that

such money or property be paid into the court for the benefit of the

beneficiary or the person or persons who may thereafter appear entitled

thereto. The money or property so paid into the court shall be paid out

only upon order of the court or pursuant to the order or judgment of a

court of competent jurisdiction.

3. In any such proceeding where it is uncertain that a noncitizen

beneficiary or fiduciary not residing within the United States, the

District of Columbia, the Commonwealth of Puerto Rico or a territory or

possession of the United States would have the benefit or use or control

of the money or property due him the burden of proving that the

noncitizen beneficiary will receive the benefit or use or control of the

money or property due him or her shall be upon him or her or the person

claiming from, through or under him or her.

4. Nothwithstanding any laws of inheritance or descent and

distribution of any state or territory of the United States, and

notwithstanding similar laws of foreign countries or sovereignties, such

states or territories of the United States or foreign countries or

sovereignties may not claim for themselves, as heirs or distributees or

by any other theory of inheritance, any funds whose situs is in this

state and which have been deposited pursuant to the laws of the state of

New York for the benefit of any distributee, heir, legatee or owner of

said funds, whether known or unknown, or for any person whose

whereabouts are unknown.