Which statement describes the conditions under which an elective share trust is considered valid?

• A. Died prior to 1994 with outright gift at least $50,000, principal in trust at least 1/3, and spouse has a life estate.
• B. Died after 1994, regardless of gift amounts.
• C. The trust must be funded with at least $100,000.
• D. The spouse has no life estate.

Answer: (A)

The tested idea is how an elective share trust is valid under New York law, which hinges on the historical framework in effect at the decedent’s death. Under the older pre-1994 regime, an elective share trust could be valid only if the decedent died before the statutory change and the arrangement met specific funding and interest requirements: there had to be a substantial outright gift to the surviving spouse (at least $50,000), the trust had to hold at least one-third of the estate, and the surviving spouse needed to hold a life estate in the trust assets. When those conditions line up, the trust is recognized as a proper vehicle to satisfy the spouse’s elective share.

This is why the scenario describing a death before 1994 with an outright gift of at least $50,000, a trust principal of at least one-third of the estate, and the spouse having a life estate fits as a valid elective share trust. Scenarios that involve death after 1994, smaller or different gift amounts, a trust funded with less than the required portion, or the absence of a life estate do not meet the pre-1994 requirements and would not be considered valid elective share trusts under the same framework.