A trust is not merged or invalid because a person, including but not limited to the creator of the trust, is or may become the sole trustee and the sole holder of the present beneficial interest therein, provided that one or more other persons hold a beneficial interest therein, whether such interest be vested or contingent, present or future, and whether created by express provision of the instrument or as a result of reversion to the creator’s estate.
EPTL 7-1.1 re-enacts RPL § 92.
Victoria Hasseler, Trustee-Beneficiaries, Creditors, and New York’s EPTL: The Surprises That Result and How the Utc Solves Them, 69 Alb. L. Rev. 1169 at 1170 n.5:
Section 7-1.1 of the Estates, Powers and Trusts Law was formerly entitled “When right to possession creates legal ownership”; in 1997, the Legislature amended the statutory heading of section 7-1.1 so that it is now entitled “When trust interests not to merge.” Act effective June 25, 1997, ch. 139, 1, 1997 N.Y. Laws 1885, 1885; . . .