A gross sum payable to a party in lieu of the income of a sum of money paid into court for his benefit shall be calculated according to article four of the real property actions and proceedings law.
§ 2604.Calculation of gross sum in lieu of income
Article 26. Property Paid Into Court · Last amended 1966 · Last verified July 21, 2026
In one sentenceCPLR 2604 requires a lump-sum payment made in place of ongoing income from money held in court to be calculated using the valuation method set out in article four of the Real Property Actions and Proceedings Law.
Full Text of CPLR 2604
Plain-English Summary
Money paid into court sometimes generates income for a party over time rather than a single payout — think of a life estate or a similar interest funded by court-held funds. Occasionally it makes more sense to pay that party one gross sum up front instead of a stream of periodic payments.
CPLR 2604 tells the court how to figure out what that lump sum should be: by the calculation method in article four of the Real Property Actions and Proceedings Law. That article supplies the valuation tables New York already uses to convert a right to future income into a present dollar figure, so this section borrows an established formula rather than inventing a new one.
Frequently Asked Questions
What is a gross sum in lieu of income under CPLR 2604?
It's a single lump-sum payment made instead of ongoing periodic income from money paid into court for a party's benefit.
How does New York calculate a lump-sum payout of court-held funds?
CPLR 2604 requires the calculation to follow article four of the Real Property Actions and Proceedings Law, which supplies the valuation method.
Why does CPLR 2604 point to the Real Property Actions and Proceedings Law?
That law already contains an established formula for converting a right to future income into a present lump sum, so CPLR 2604 relies on it rather than setting out a separate calculation.
Does CPLR 2604 apply to life estates funded by court deposits?
It applies whenever a party is owed a gross sum in place of income from money paid into court for their benefit, which includes life-estate-type interests.
Can a party ask for a lump sum instead of periodic income from court-held money?
The statute assumes such a request can arise and tells the court how to size the payment; it does not itself grant a right to demand one in every case.
Advisory Committee Notes
This section is the second sentence of RCP 30 with only minor changes in language. The words “yearly interest” have been omitted as unnecessary. The parenthetical reference to former rule 243, which provided for the calculation of a gross sum in an action for dower, has been omitted, since an inconsistent special statute or rule would govern without the necessity for such reference. See CPLR § 101. Revision Notes: [1966, ch 233] These are amendments recommended by the Law Revision Commission. See Leg Doc (1966) No. 65 (H). Their purpose is to substitute for the reference to the outdated American Experience Table of Mortality in Real Property Actions and Proceedings Law, § 403, a reference to the modern mortality table prescribed by Insurance Law, § 205(3)(a)(i). Conformity amendments are made to CPLR 2604 and Decedent Estate Law, § 17.
Amendment History
Add, L 1962, ch 308, § 1; amd, L 1966, ch 233, § 1, eff April 25, 1966.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
Also known as: lump sum in lieu of income NY courtgross sum calculation court depositRPAPL article 4 valuation CPLRpresent value payout court held funds