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TRUSTS AND TRUSTEES Section 1501. Application of act to trusts. 1502. Appointment of trustee. 1503. Qualification of trustee appointed by another court. 1504. Renunciation of appointment: retraction thereof. 1505. Proceeding when testamentary trustee is also executor or administrator. 1506. Nonliability for acts of predecessor executor. 1507. Authority to mortgage, sell, lease or exchange. 1508. Authority to release claims against the state by reason of appropriation of trust property not subject to power of sale. 1509. Power over lifetime trusts. S 1501. Application of act to trusts 1. The provisions of this act apply to any of the following trusts without regard to the domicile of the trustee or to the time of the execution of the will or of the creation of the lifetime trust: (a) A trust created by the will of a domiciliary. (b) A trust relating to real or personal property, without regard to the domicile of the testator or the grantor, where if a testamentary trust the will creating the trust was admitted to probate in any surrogate`s court of this state or where the situs of the trust or any real property held by the trust is within this state and if a testamentary trust the will creating the trust was duly proved or established or admitted to probate within a foreign country or state, the District of Columbia, the Commonwealth of Puerto Rico, a territory or possession of the United States where it was executed or where the testator was domiciled at the time of his death. (c) A lifetime trust of which the supreme court would also have jurisdiction. 2. The situs of a trust of personal property created by the will or lifetime trust instrument of a non-domiciliary shall be deemed to be in this state if the personal property is in this state at the date of the testator`s death with respect to a testamentary trust or at the time of the creation of the lifetime trust with respect to a lifetime trust and is held and administered in this state in accordance with the will or lifetime instrument or, except where the will or lifetime trust instrument or the laws of the domicile of the testator or the domicile at the time the trust was created of the grantor expressly provide otherwise, if such property is brought into this state for administration. 3. If original probate of the will of a non-domiciliary has been had in any county of this state jurisdiction of the trust created under the will shall be vested in the surrogate`s court of that county. If ancillary proceedings in respect of any phase of the estate of a non-domiciliary have been had in any county of the state, jurisdiction of the trust shall be vested in the surrogate`s court of that county. If neither an original nor ancillary proceedings has been had in any county of the state, and in all cases involving lifetime trusts, jurisdiction shall be vested in the surrogate`s court of any county in which real property subject to the trust is situated, or if there is no such real property subject to the trust, in the surrogate`s court of the county in which any trustee has his residence or its principal place of business: provided that in case the surrogate`s court in more than one county might be entitled to entertain jurisdiction over any such trust jurisdiction shall be vested in the surrogate`s court first entertaining a proceeding in relation to the trust. 4. Any surrogate may decline to entertain jurisdiction over the administration of a trust of personal property created by the will of or lifetime trust instrument created by a non-domiciliary. Every application to the court to entertain jurisdiction over such a trust shall state whether any previous application for such relief has been made in this state and shall state the disposition thereof and be accompanied by a copy of the will and of the foreign letters, if any have been issued, authenticated as prescribed in 1614, or of the lifetime trust instrument creating the trust, with proof of its authenticity. If the application be entertained the court shall record the will or such instrument in its office. S 1502. Appointment of trustee 1. The court may appoint a trustee or successor or successors or co-trustee or co-trustees whenever there is no trustee able to act or all or one of the trustees is unable to act and a successor or co-trustee in his or their place is necessary in order to execute the trust or execute any power created by a will or lifetime trust instrument creating a trust, the execution of which has devolved upon the court or upon the supreme court. 2. The court shall not appoint a trustee, successor or co-trustee if the appointment would contravene the express terms of the will or lifetime trust instrument or if a trustee may be or has been named in the will or lifetime trust instrument as successor, substitute or co-trustee and is not disqualified to act. 3. Until a successor or co-trustee is appointed the remaining trustee or trustees may execute the trust. 4. A trustee, successor or co-trustee may be appointed upon the application of any person interested and upon notice to such persons as the court may designate. 5. The court may appoint a successor trustee for any purposes deemed necessary to complete administration or distribution of a trust which has terminated by the occurrence of the event measuring its duration when there is no person in office able to execute it. 6. A successor trustee shall be subject to the same duties, as to accounting and trust administration, as are imposed by law on trustees and, in addition to the reasonable expenses incurred in the course of trust administration, shall be entitled to commissions as may be fixed by any court having jurisdiction to pass upon the trustee`s final account, which shall in no case exceed the commissions allowable by law to trustees. S 1503. Qualification of trustee appointed by another court When the supreme court appoints a testamentary trustee a certified copy of the order or decree of appointment and of the bond given by the trustee shall be filed in the surrogate`s court of the county having jurisdiction of the trust and a minute thereof shall be made and indexed in the book kept by the court in which orders or decrees appointing trustees are entered. The trustee shall file in such surrogate`s court the oath or consent and the instrument of designation required of such fiduciary and letters shall thereupon issue to him from such court. He shall be subject to all the duties and liabilities of a testamentary trustee appointed by the surrogate`s court. S 1504. Renunciation of appointment: retraction thereof 1. A testamentary trustee may renounce his appointment by a duly acknowledged instrument. 2. By like instrument the renunciation may be retracted at any time before letters have been issued to another in his place or after such letters have been issued, if they have been revoked or the person to whom they have been issued has become unable to act or disqualified. The court may issue letters to the person so retracting upon such notice as it may require. 3. The instrument of renunciation and the instrument of retraction authorized by this section must be filed in the office of the court having jurisdiction of the trust.
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S 1505. Proceeding when testamentary trustee is also executor or administrator 1. Where the same person is a testamentary trustee and also the executor of the will or the administrator upon the same estate, proceedings taken by or against him as trustee, as prescribed in this act, do not affect him as executor or administrator or persons interested in the general estate, except in one of the following cases: (a) Where he presents a petition praying for the revocation of his letters, he may in the same petition show that he is entitled to resign as testamentary trustee and may thereupon pray for a decree allowing him to resign and for process accordingly. (b) Where a person presents a petition praying for the revocation of letters issued to an executor or administrator and any of the facts in the petition are made, by the provisions of this act, sufficient to entitle the same person to present a petition praying for the removal of a testamentary trustee, the petitioner may pray for a decree removing the person complained of in both capacities, and for process accordingly. 2. In either case proceedings upon the petition for resignation or removal, as the case requires, of the testamentary trustee, and for the judicial settlement of his account, may be taken as prescribed in this act, in connection with or separately from the like proceedings upon the petition for the revocation of the letters, as directed by the court. S 1506. Nonliability for acts of predecessor executor A trustee who was not an executor of the estate of the same decedent shall not be liable for breach of trust committed by the executor in any of the following cases: 1. He received the assets of the trust pursuant to a final decree of the court. 2. He did not know of a situation constituting a breach of trust committed by the executor, and does not improperly permit it to continue. 3. He does not neglect to take proper steps to compel the executor to deliver trust property to him. 4. He does not neglect to take proper steps to redress a breach of trust committed by the executor. S 1507. Authority to mortgage, sell, lease or exchange 1. In any case in which the power to mortgage, sell, lease or exchange real property does not exist under the provisions of EPTL 11-1.1 or for other reasons it is for the best interests of the trust, the court of the county having jurisdiction of the trust may on such terms and conditions as seem just and proper authorize any testamentary trustee to mortgage, sell, lease or exchange real property or any part thereof belonging to the trust. 2. If the application be entertained process shall issue to all persons interested in the trust to show cause why the relief requested in the petition should not be granted. 3. On the return of process the court shall make such order as justice requires. Such order and the mortgage, sale, lease or exchange executed in conformity therewith shall be binding and conclusive on the remainders and reversions as well as the immediate or future trust interests in the real property and shall be valid and effectual against all persons under disability as defined in this act and persons not in being, having estates or interests vested or contingent, for life or in trust or in reversion or remainder in such real property or in the proceeds of the sale thereof and shall bind and be conclusive against all other persons so interested or having such estates or interests who shall by acknowledged instrument consent to such order or who have been made parties to the proceeding. S 1508. Authority to release claims against the state by reason of appropriation of trust property not subject to power of sale 1. The surrogate of any county having jurisdiction of the trust may, by order, authorize any testamentary trustee to release a claim against the state for compensation on account of the appropriation by the state of any real property or any right, interest or easement therein belonging to the trust, and for legal damages caused by the appropriation and for damages sustained by any entry upon, use or occupation of, or injury to the real property by the state prior to completion of the appropriation. 2. Application for the order may be entertained by the court in all cases where the will does not contain a valid power of sale with regard to such property or a sale is not authorized under the provisions of EPTL 11-1.1. 3. Notice of the application shall be given to such persons and in such manner as directed by the court. Prior to the application and irrespective of when the appropriation was effected, the trustee may enter into an agreement with the state, subject to the approval of the court, for the payment of such compensation, a copy of which agreement shall be presented to the court together with the petition. 4. Upon consideration by the court of the petition, the allegations and proofs of the parties and upon the testimony of the petitioner and of at least 2 disinterested persons acquainted with the facts, presented orally or by affidavit, as to the value of the interest of the trust in the property so appropriated, including the legal damage caused by the appropriation and the damages, if any, sustained by the entry upon, use or occupation of, or injury to the real property by the state prior to completion of appropriation and upon inquiring into the facts and circumstances, if it shall appear to the satisfaction of the court that the amount of compensation offered by the state represents the fair market value of the property appropriated and just compensation for the legal damages caused by the appropriation and the damages, if any, sustained by the entry upon, use or occupation of or injury to the property by the state prior to completion of appropriation, the court may by order confirm the agreement and authorize and direct the trustee to execute and deliver to the state a release of such claim and any documents or instruments required by the state to give full effect to the release, for the amount of consideration so offered by the state for such release in full payment of such claim for compensation for the use and benefit of the trust. 5. The order made pursuant to this section and the release and attendant documents and instruments executed and delivered in conformity therewith shall be binding and conclusive on the remainders and reversions as well as the immediate or future trust interests in the real property so held under the trust and shall bind and be conclusive against all persons under disability as defined in this act and persons not in being and all other persons having estates or interests vested or contingent, for life or in trust, or in reversion or remainder in the trust property or in the proceeds of the appropriation thereof by the state. S 1509. Power over lifetime trusts Except to the extent inconsistent with other provisions of this act, the surrogate having jurisdiction of a lifetime trust shall have such power over the lifetime trust and its trustee as a justice of the supreme court having jurisdiction over the trust would have.