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

Section 5013.2 - Testementary Trust as Beneficiary

The designation of a trustee of a testamentary 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) hereof, 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 will;

(c) The designation must state the date of the will and the paragraph in such will under which such trust will be created. The form which the designation must take is as follows:

"John Smith ( and Mary Brown), as trustee(s) of the testamentary trust established by paragraph 4 of my will, dated September 22, 1968."

(d) The will under which the trust is established must be the member's/beneficiary’s will; and

(e) The System must be furnished, at or before the time a benefit becomes payable, with a certified copy of the letters of trusteeship or other evidence which, in the System’s sole judgment, establishes the authority of the trustee(s) to receive payment.

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