N.Y. Comp. Codes R. & Regs. tit. 20 § 360.5

Current through Register Vol. 46, No. 16, April 17, 2024

Section 360.5 - Payment of death benefits under employees' pension or profit-sharing plans

(a)

(1) An amount payable pursuant to the terms of an employees' pension or profit-sharing plan or trust, upon the death of an employee or former employee covered thereby who dies after June 30, 1978, may be paid to any person entitled thereto without written consent or waiver of the State Tax Commission and without retaining any portion thereof for the payment of estate tax or interest, provided the total amount so payable pursuant to such plan or trust and all other employees' pension or profit-sharing plans or trusts established by the same employer or an affiliated corporation is not in excess of $50,000, and provided further that, if the total amount so payable exceeds $30,000, written notice of such payment, in duplicate and in the form set forth in subdivision (c) of this section, has been mailed to the State Tax Commission.

(2) An amount payable pursuant to the terms of an employees' pension or profit-sharing plan or trust, upon the death of an employee or former employee covered thereby who dies before July 1, 1978, may be paid to any person entitled thereto without written consent or waiver of the State Tax Commission and without retaining any portion thereof for the payment of estate tax or interest, provided the total amount so payable pursuant to such plan or trust and all other employees' pension or profit-sharing plans or trusts established by the same employer or an affiliated corporation is not in excess of $20,000, and provided further that, if the total amount so payable exceeds $2,000, written notice of such payment, in duplicate and in the form set forth in subdivision (c) of this section, has been mailed to the State Tax Commission.

(3) Notwithstanding the provisions of paragraph (1) of this subdivision, an amount payable pursuant to the terms of an employees' pension or profit-sharing plan or trust upon the death of an employee or former employee covered thereby who dies after September 30, 1983, may be paid to such employee's or former employee's surviving spouse, if such spouse is the person entitled thereto, without the written consent or waiver of the State Tax Commission and without retaining any portion thereof for the payment of estate tax or interest or giving written notice thereof to the State Tax Commission.

(b) Where the total amount payable to any person pursuant to the terms of any such plan or trust is dependent upon the duration of his life or any life or lives in being, the total amount payable to such person, for the purposes of this section, shall be deemed to mean the value of his right to receive payments pursuant to such plan or trust. In any such case, the notice to the State Tax Commission must contain all information necessary to compute the value of such person's interest.

(c) The following is the form of notice to be mailed to the Estate and Gift Tax Section, Audit Division, pursuant to this section:

NOTICE OF PAYMENT OF DEATH BENEFIT UNDER EMPLOYEES' PENSION OR PROFIT-SHARING PLAN ____

To: Estate and Gift Tax Section Audit Division State Campus Albany, N.Y. 12227

Notice is hereby given that the undersigned is about to make payment, pursuant to the terms of an employees' pension or profit-sharing plan, by reason of the death of the decedent named hereunder, to the persons named in the following schedule, and that the total amount to be paid to each of them (including the value of all future payments) is as set forth in said schedule.

Name of decedent.... Date of death.... Residence address .............

Name

Residence address

Relationship to decedent

Total amount payable

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(Name of corporation or person......

making payment) .......

Dated:

______

(Address) .......

...............................................

By:

................................................

(Name and title of corporate officer)

Note: The above notice, in duplicate, must be mailed to Estate and Gift Tax Section, Audit Division, State Campus, Albany, N.Y. 12227, before payment is made. If any annuity or similar benefit is to be paid, there must be attached to this form a statement showing the age of the beneficiary, and all other facts necessary to compute the value of his interest.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 360.5