N.Y. EPT Law § 11-A-4.9

§ 11-A-4.9 Deferred compensation, annuities, and similar payments\n (a) In this section, "payment" means a payment that a trustee may\nreceive over a fixed number of years or during the life of one or more\nindividuals because of services rendered or property transferred to the\npayer in exchange for future payments. The term includes a payment made\nin money or property from the payer's general assets or from a separate\nfund created by the payer, including a private or commercial annuity, an\nindividual retirement account, and a pension, profit-sharing,\nstock-bonus, or stock-ownership plan.\n (b) To the extent that a payment is characterized as interest or a\ndividend or a payment made in lieu of interest or a dividend, a trustee\nshall allocate it to income. The trustee shall allocate to principal the\nbalance of the payment and any other payment received in the same\naccounting period that is not characterized as interest, a dividend, or\nan equivalent payment.\n (c) If no part of a payment is characterized as interest, a dividend,\nor an equivalent payment, and all or part of the payment is required to\nbe made, a trustee shall allocate to income ten percent of the part that\nis required to be made during the accounting period and the balance to\nprincipal. If no part of a payment is required to be made or the payment\nreceived is the entire amount to which the trustee is entitled, the\ntrustee shall allocate the entire payment to principal. For purposes of\nthis paragraph, a payment is not "required to be made" to the extent\nthat it is made because the trustee exercises a right of withdrawal.\n (d) If, to obtain an estate tax marital deduction for a trust, a\ntrustee must allocate more of a payment to income than provided for by\nthis section, the trustee shall allocate to income the additional amount\nnecessary to obtain the marital deduction.\n (e) This section does not apply to payments to which 11-A-4.10\napplies.\n