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PART 5013- Inter-Vivos or Testamentary Trust as Beneficiary Pursuant to Sections 512 and 513 of the Education Law

Section 5013.1 - Inter-Vivos Trust as Beneficiaries

The designation of a trustee of an inter-vivos trust as beneficiary to receive the return of the accumulated contributions in a lump sum, a lump-sum death benefit, including take-home-pay reserve, if any, the Lump Sum Option pursuant to §5014.2(a) hereof, the commuted value of a Five or Ten Year Guarantee Option pursuant to §5014.2(b), or a lump-sum Alternative Option pursuant to §5014.2(c), shall be proper if the following conditions are met:

(a) The designation must be on a form supplied by the System;

(b) The trustee to whom a benefit may become payable must be a person or corporation, and must be definitely ascertainable from the trust instrument; if the member is a trustee, the trust instrument must clearly identify a person or corporation appointed as successor trustee;

(c) The designation filed with the System (i) must specify the name and address of the trustee(s), (ii) must recite the date of the trust instrument, and (iii) must be accompanied by a true copy of the trust instrument;

(d) The form which the designation must take is as follows:

"John Smith, 275 State Street, Albany, New York 12210, as trustee of a trust created by instrument, dated April 19, 1959, a true copy of which is annexed hereto."

(e) The trust instrument must contain the name and address of the trustee(s) and successor trustee(s).

Notwithstanding the foregoing, the System may, in lieu of requiring a true copy of the entire trust instrument, accept a true copy of such portion(s) of the trust instrument as the System may determine, in its sole discretion, are necessary to identify the trustee(s) and successor trustee(s) to whom a benefit may become payable.

(Statutory authority: Education Law, §§ 512, 513)