Print
House Study Bill 106 - IntroducedA Bill ForAn Act 1relating to probate proceedings, including fiduciary and
2trustee duties, and including applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 633.78, subsection 1, Code 2023, is
2amended to read as follows:
31. A fiduciary under this chapter may present a written
4request to any person for the purpose of obtaining property
5owned by a decedent or by a ward protected person of a
6conservatorship for which the fiduciary has been appointed,
7or property to which a decedent or ward protected person is
8entitled, including information about property owned by a
9decedent or protected person that has passed or will pass
10by beneficiary designation or joint tenancy ownership, or
11for information about such property needed to perform the
12fiduciary’s duties. The request must contain statements
13confirming all of the following:
14a. The fiduciary’s authority has not been revoked, modified,
15or amended in any manner which would cause the representations
16in the request to be incorrect.
17b. The request has been signed by all fiduciaries acting on
18behalf of the decedent or ward protected person.
19c. The request has been dated and affirmed under penalty of
20perjury to be true and correct or has been sworn and subscribed
21to under penalty of perjury before a notary public as provided
22in chapter 9B.
23d. A photocopy of the fiduciary’s letters of appointment is
24being provided with the request.
25 Sec. 2. Section 633.78, subsection 4, paragraph a, Code
262023, is amended to read as follows:
27a. Damages sustained by the decedent’s or ward’s protected
28person’s estate.
29 Sec. 3. Section 633.301, Code 2023, is amended to read as
30follows:
31633.301 Copy of will for executor.
32When Upon request by the executor, when a will has been
33admitted to probate and certified pursuant to section 633.300,
34the clerk shall cause a certified copy thereof to be placed
35in the hands of the executor to whom letters are issued. The
-1-1clerk shall retain the will in a separate file provided for
2that purpose until the time for contest has expired, and
3promptly thereafter shall place it with the files of the
4estate.
5 Sec. 4. Section 633.309, Code 2023, is amended to read as
6follows:
7633.309 Time within which action must be commenced.
81. An action to contest or set aside the probate of a will
9must be commenced in the court in which the will was admitted
10to probate within the later to occur of four months from the
11date of second publication of notice of admission of the will
12to probate or one month following the mailing of the notice to
13all heirs of the decedent and devisees under the will whose
14identities are reasonably ascertainable, at such persons’ last
15known addresses.
162. A party claiming the decedent’s will was procured in
17whole or in part by tortious interference with inheritance must
18join such claim together in a timely will contest. The time
19period set out in this section applies to both the will contest
20and procurement of the decedent’s will by tortious interference
21with inheritance if the party making the claim was given notice
22pursuant to section 633.304.
23 Sec. 5. Section 633.555, Code 2023, is amended to read as
24follows:
25633.555 Procedure in lieu of conservatorship for a minor.
261. If a conservator has not been appointed for a minor,
27money due to a minor or other property to which a minor is
28entitled, not exceeding in the aggregate twenty-five fifty
29thousand dollars in value, shall be paid or delivered to a
30custodian under any uniform transfers to minors Act. one or
31more of the following:
32a. A custodian under the uniform transfer to minor account
33established for the protected person pursuant to chapter 565B
34or the laws of any other state.
35b. A custodial trustee under a uniform custodial trust
-2-1account established for the protected person pursuant to
2chapter 633F or the laws of any other state.
3c. An account owner or participant under a college savings
4plan account established for the protected person pursuant to
5section 529 of the Internal Revenue Code or chapter 12D.
6d. The account owner under an ABLE account established for
7the protected person with disabilities pursuant to section 529A
8of the Internal Revenue Code or chapter 12I.
92. If a conservator has not been appointed for a minor, and
10the money due to a minor or other property to which a minor is
11entitled exceeds fifty thousand dollars in the aggregate, the
12property may be paid or delivered in the manner set forth in
13subsection 1 only if such transfer is authorized by the court.
143. The written receipt of the custodian constitutes an
15acquittance of the person making the payment of money or
16delivery of property.
17 Sec. 6. Section 633.561, subsections 3 and 6, Code 2023, are
18amended to read as follows:
193. If the respondent is entitled to representation and is
20indigent or incapable of requesting counsel, the court shall
21appoint an attorney to represent the respondent. The cost of
22court appointed counsel for indigents, including the cost of
23the trial transcript, shall be assessed against the county
24in which the proceedings are pending. For the purposes of
25this subsection, the court shall find a person is indigent if
26the person’s income and resources do not exceed one hundred
27fifty percent of the federal poverty level or the person would
28be unable to pay such costs without prejudicing the person’s
29financial ability to provide economic necessities for the
30person or the person’s dependents.
316. If the court determines that it would be in the
32respondent’s best interest to have legal representation
33with respect to any proceedings in a guardianship or
34conservatorship, the court may appoint an attorney to represent
35the respondent at the expense of the respondent or the
-3-1respondent’s estate, or if the respondent is indigent the cost
2of the court appointed attorney, including the cost of the
3trial transcript, shall be assessed against the county in which
4the proceedings are pending.
5 Sec. 7. NEW SECTION. 633A.4403 Trustee-written request and
6third-party protection.
71. A trustee under this chapter may present a written
8request to any person for the purpose of obtaining information
9needed to perform the trustee’s duties or information regarding
10any of the following property:
11a. Owned by the trust for which the trustee is acting as
12fiduciary.
13b. To which a living or deceased settlor is entitled.
14c. Owned by the deceased settlor at the time of death,
15including information about property of a deceased settlor that
16has passed or will pass by beneficiary designation or joint
17tenancy ownership.
182. The written request must include a certification of
19trust that complies with section 633A.4604. A person to whom a
20request is presented under this section may require that the
21trustee presenting the request provide proof of the trustee’s
22identity.
233. A person who in good faith provides the property or
24information a trustee requests under this section, after taking
25reasonable steps to verify the identity of the trustee and
26who has no knowledge that the representations contained in
27the request are incorrect, shall not be liable to any person
28for so acting and may assume without inquiry the existence of
29the facts contained in the request. The period of time to
30verify the trustee’s authority shall not exceed ten business
31days from the date the person received the request. Any right
32or title acquired from the trustee in consideration of the
33provision of property or information under this section is not
34invalid in consequence of a misapplication by the trustee. A
35transaction, and a lien created by a transaction, entered into
-4-1by the trustee and a person acting in reliance upon a request
2under this section is enforceable against the assets for which
3the trustee has responsibility.
44. If a person refuses to provide the requested property or
5information within ten business days after receiving a request
6under this section, the trustee may bring an action to recover
7the property or information or compel its delivery against
8the person to whom the trustee presented the written request.
9An action brought under this section must be brought within
10one year after the date of the act or failure to act. If the
11court finds that the person acted unreasonably in failing to
12deliver the property or information as requested in the written
13request, the court may award any or all of the following to the
14trustee:
15a. Damages sustained by the trust or by a living or deceased
16settlor’s estate.
17b. Costs of the action.
18c. A penalty in an amount determined by the court, but
19not less than five hundred dollars or more than ten thousand
20dollars.
21d. Reasonable attorney fees, as determined by the court,
22based on the value of the time reasonably expended by the
23attorney and not by the amount of the recovery on behalf of the
24trustee.
255. This section does not limit or change the right of
26beneficiaries, heirs, or creditors of a living or deceased
27settlor to estate or trust property to which they are otherwise
28entitled.
29 Sec. 8. Section 633B.211, subsection 2, Code 2023, is
30amended by adding the following new paragraphs:
31 NEW PARAGRAPH. h. Establish a medical assistance special
32needs trust pursuant to chapter 633C for the benefit of
33the principal and transfer an interest of the principal in
34real property, stocks and bonds, accounts with financial
35institutions or securities intermediaries, insurance,
-5-1annuities, and other property to the trustee of any such trust.
2 NEW PARAGRAPH. i. Establish a medical assistance income
3trust pursuant to chapter 633C for the benefit of the principal
4and transfer an income interest of the principal to the trustee
5of any such trust.
6 Sec. 9. APPLICABILITY. The following apply to estates,
7trusts, and conservatorships in existence on or after the
8effective date of this Act, that were opened or created before,
9on, or after the effective date of this Act:
101. The sections of this Act amending section 633.78.
112. The section of this Act amending section 633.555.
123. The section of this Act enacting section 633A.4403.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16This bill relates to probate proceedings.
17The bill allows a fiduciary to present a written request to
18any person for the purpose of obtaining information about the
19property owned by the decedent or protected person that has
20passed or will pass by beneficiary designation or joint tenancy
21ownership. The written request needs to be dated and affirmed
22under penalty of perjury to be true and correct.
23Under current law, a certified copy of a will is provided to
24the executor by the clerk of court upon the will being admitted
25into probate. The bill requires an executor to request a copy.
26The bill requires that a party claiming that the decedent’s
27will was procured by tortious interference with inheritance
28must join the claims in a timely will contest.
29The bill changes the procedure in lieu of a conservatorship
30for a minor by increasing the aggregate amount of money from
31$25,000 to $50,000 under which the amount may be paid or
32delivered to the following: a uniform transfer to minor
33account, a uniform custodial trust account, an account owner
34or participant under a college savings plan account, or an
35account owner under an ABLE account. An amount over $50,000
-6-1may be paid or delivered in this manner only if authorized by
2the court.
3The bill provides that the cost of a trial transcript for
4an indigent respondent shall be assessed against the county in
5which the probate proceedings are pending.
6The bill creates a procedure for a trustee’s written
7request and third-party protection. A trustee may present a
8written request to any person for the purpose of obtaining
9information needed to perform the trustee’s duties or regarding
10property owned by the trust for which the trustee is acting as
11fiduciary, for which a living or deceased settlor is entitled,
12or owned by the deceased settlor at the time of death. The
13request must include a certification of trust (Code section
14633A.4604). A person to whom a request is presented may
15require that the trustee presenting the request provide proof
16of the trustee’s identity.
17The bill provides that a person who in good faith provides
18the property or information a trustee requests, after taking
19reasonable steps to verify the identity of the trustee and who
20has no knowledge that the representations contained in the
21request are incorrect, shall not be liable to any person for
22so acting and may assume without inquiry the existence of the
23facts contained in the request. If a person refuses to provide
24the requested property or information within 10 business days
25after receiving a request, the trustee may bring an action to
26recover the property or information or compel its delivery
27against the person to whom the trustee presented the written
28request. In an action against a person for unreasonably
29withholding property, the court may award any or all of the
30following to the trustee: damages sustained by the trust or by
31a living or deceased settlor’s estate, costs of the action, a
32penalty set forth in the bill, and reasonable attorney fees.
33Under the bill, certain provisions do not limit or change
34the right of beneficiaries, heirs, or creditors of a living or
35deceased settlor to estate or trust property to which they are
-7-1otherwise entitled.
2The bill allows an agent of a protected person to establish a
3medical assistance special needs trust and a medical assistance
4income trust pursuant to Code chapter 633C for the benefit of
5the principal.
6Certain provisions of the bill apply to estates, trusts, and
7conservatorships in existence on or after July 1, 2023, that
8were opened or created before, on, or after July 1, 2023, as
9set forth in the bill.
-8-cm/nscm/ns
2trustee duties, and including applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 633.78, subsection 1, Code 2023, is
2amended to read as follows:
31. A fiduciary under this chapter may present a written
4request to any person for the purpose of obtaining property
5owned by a decedent or by a ward protected person of a
6conservatorship for which the fiduciary has been appointed,
7or property to which a decedent or ward protected person is
8entitled, including information about property owned by a
9decedent or protected person that has passed or will pass
10by beneficiary designation or joint tenancy ownership, or
11for information about such property needed to perform the
12fiduciary’s duties. The request must contain statements
13confirming all of the following:
14a. The fiduciary’s authority has not been revoked, modified,
15or amended in any manner which would cause the representations
16in the request to be incorrect.
17b. The request has been signed by all fiduciaries acting on
18behalf of the decedent or ward protected person.
19c. The request has been dated and affirmed under penalty of
20perjury to be true and correct or has been sworn and subscribed
21to under penalty of perjury before a notary public as provided
22in chapter 9B.
23d. A photocopy of the fiduciary’s letters of appointment is
24being provided with the request.
25 Sec. 2. Section 633.78, subsection 4, paragraph a, Code
262023, is amended to read as follows:
27a. Damages sustained by the decedent’s or ward’s protected
28person’s estate.
29 Sec. 3. Section 633.301, Code 2023, is amended to read as
30follows:
31633.301 Copy of will for executor.
32When Upon request by the executor, when a will has been
33admitted to probate and certified pursuant to section 633.300,
34the clerk shall cause a certified copy thereof to be placed
35in the hands of the executor to whom letters are issued. The
-1-1clerk shall retain the will in a separate file provided for
2that purpose until the time for contest has expired, and
3promptly thereafter shall place it with the files of the
4estate.
5 Sec. 4. Section 633.309, Code 2023, is amended to read as
6follows:
7633.309 Time within which action must be commenced.
81. An action to contest or set aside the probate of a will
9must be commenced in the court in which the will was admitted
10to probate within the later to occur of four months from the
11date of second publication of notice of admission of the will
12to probate or one month following the mailing of the notice to
13all heirs of the decedent and devisees under the will whose
14identities are reasonably ascertainable, at such persons’ last
15known addresses.
162. A party claiming the decedent’s will was procured in
17whole or in part by tortious interference with inheritance must
18join such claim together in a timely will contest. The time
19period set out in this section applies to both the will contest
20and procurement of the decedent’s will by tortious interference
21with inheritance if the party making the claim was given notice
22pursuant to section 633.304.
23 Sec. 5. Section 633.555, Code 2023, is amended to read as
24follows:
25633.555 Procedure in lieu of conservatorship for a minor.
261. If a conservator has not been appointed for a minor,
27money due to a minor or other property to which a minor is
28entitled, not exceeding in the aggregate twenty-five fifty
29thousand dollars in value, shall be paid or delivered to a
30custodian under any uniform transfers to minors Act. one or
31more of the following:
32a. A custodian under the uniform transfer to minor account
33established for the protected person pursuant to chapter 565B
34or the laws of any other state.
35b. A custodial trustee under a uniform custodial trust
-2-1account established for the protected person pursuant to
2chapter 633F or the laws of any other state.
3c. An account owner or participant under a college savings
4plan account established for the protected person pursuant to
5section 529 of the Internal Revenue Code or chapter 12D.
6d. The account owner under an ABLE account established for
7the protected person with disabilities pursuant to section 529A
8of the Internal Revenue Code or chapter 12I.
92. If a conservator has not been appointed for a minor, and
10the money due to a minor or other property to which a minor is
11entitled exceeds fifty thousand dollars in the aggregate, the
12property may be paid or delivered in the manner set forth in
13subsection 1 only if such transfer is authorized by the court.
143. The written receipt of the custodian constitutes an
15acquittance of the person making the payment of money or
16delivery of property.
17 Sec. 6. Section 633.561, subsections 3 and 6, Code 2023, are
18amended to read as follows:
193. If the respondent is entitled to representation and is
20indigent or incapable of requesting counsel, the court shall
21appoint an attorney to represent the respondent. The cost of
22court appointed counsel for indigents, including the cost of
23the trial transcript, shall be assessed against the county
24in which the proceedings are pending. For the purposes of
25this subsection, the court shall find a person is indigent if
26the person’s income and resources do not exceed one hundred
27fifty percent of the federal poverty level or the person would
28be unable to pay such costs without prejudicing the person’s
29financial ability to provide economic necessities for the
30person or the person’s dependents.
316. If the court determines that it would be in the
32respondent’s best interest to have legal representation
33with respect to any proceedings in a guardianship or
34conservatorship, the court may appoint an attorney to represent
35the respondent at the expense of the respondent or the
-3-1respondent’s estate, or if the respondent is indigent the cost
2of the court appointed attorney, including the cost of the
3trial transcript, shall be assessed against the county in which
4the proceedings are pending.
5 Sec. 7. NEW SECTION. 633A.4403 Trustee-written request and
6third-party protection.
71. A trustee under this chapter may present a written
8request to any person for the purpose of obtaining information
9needed to perform the trustee’s duties or information regarding
10any of the following property:
11a. Owned by the trust for which the trustee is acting as
12fiduciary.
13b. To which a living or deceased settlor is entitled.
14c. Owned by the deceased settlor at the time of death,
15including information about property of a deceased settlor that
16has passed or will pass by beneficiary designation or joint
17tenancy ownership.
182. The written request must include a certification of
19trust that complies with section 633A.4604. A person to whom a
20request is presented under this section may require that the
21trustee presenting the request provide proof of the trustee’s
22identity.
233. A person who in good faith provides the property or
24information a trustee requests under this section, after taking
25reasonable steps to verify the identity of the trustee and
26who has no knowledge that the representations contained in
27the request are incorrect, shall not be liable to any person
28for so acting and may assume without inquiry the existence of
29the facts contained in the request. The period of time to
30verify the trustee’s authority shall not exceed ten business
31days from the date the person received the request. Any right
32or title acquired from the trustee in consideration of the
33provision of property or information under this section is not
34invalid in consequence of a misapplication by the trustee. A
35transaction, and a lien created by a transaction, entered into
-4-1by the trustee and a person acting in reliance upon a request
2under this section is enforceable against the assets for which
3the trustee has responsibility.
44. If a person refuses to provide the requested property or
5information within ten business days after receiving a request
6under this section, the trustee may bring an action to recover
7the property or information or compel its delivery against
8the person to whom the trustee presented the written request.
9An action brought under this section must be brought within
10one year after the date of the act or failure to act. If the
11court finds that the person acted unreasonably in failing to
12deliver the property or information as requested in the written
13request, the court may award any or all of the following to the
14trustee:
15a. Damages sustained by the trust or by a living or deceased
16settlor’s estate.
17b. Costs of the action.
18c. A penalty in an amount determined by the court, but
19not less than five hundred dollars or more than ten thousand
20dollars.
21d. Reasonable attorney fees, as determined by the court,
22based on the value of the time reasonably expended by the
23attorney and not by the amount of the recovery on behalf of the
24trustee.
255. This section does not limit or change the right of
26beneficiaries, heirs, or creditors of a living or deceased
27settlor to estate or trust property to which they are otherwise
28entitled.
29 Sec. 8. Section 633B.211, subsection 2, Code 2023, is
30amended by adding the following new paragraphs:
31 NEW PARAGRAPH. h. Establish a medical assistance special
32needs trust pursuant to chapter 633C for the benefit of
33the principal and transfer an interest of the principal in
34real property, stocks and bonds, accounts with financial
35institutions or securities intermediaries, insurance,
-5-1annuities, and other property to the trustee of any such trust.
2 NEW PARAGRAPH. i. Establish a medical assistance income
3trust pursuant to chapter 633C for the benefit of the principal
4and transfer an income interest of the principal to the trustee
5of any such trust.
6 Sec. 9. APPLICABILITY. The following apply to estates,
7trusts, and conservatorships in existence on or after the
8effective date of this Act, that were opened or created before,
9on, or after the effective date of this Act:
101. The sections of this Act amending section 633.78.
112. The section of this Act amending section 633.555.
123. The section of this Act enacting section 633A.4403.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16This bill relates to probate proceedings.
17The bill allows a fiduciary to present a written request to
18any person for the purpose of obtaining information about the
19property owned by the decedent or protected person that has
20passed or will pass by beneficiary designation or joint tenancy
21ownership. The written request needs to be dated and affirmed
22under penalty of perjury to be true and correct.
23Under current law, a certified copy of a will is provided to
24the executor by the clerk of court upon the will being admitted
25into probate. The bill requires an executor to request a copy.
26The bill requires that a party claiming that the decedent’s
27will was procured by tortious interference with inheritance
28must join the claims in a timely will contest.
29The bill changes the procedure in lieu of a conservatorship
30for a minor by increasing the aggregate amount of money from
31$25,000 to $50,000 under which the amount may be paid or
32delivered to the following: a uniform transfer to minor
33account, a uniform custodial trust account, an account owner
34or participant under a college savings plan account, or an
35account owner under an ABLE account. An amount over $50,000
-6-1may be paid or delivered in this manner only if authorized by
2the court.
3The bill provides that the cost of a trial transcript for
4an indigent respondent shall be assessed against the county in
5which the probate proceedings are pending.
6The bill creates a procedure for a trustee’s written
7request and third-party protection. A trustee may present a
8written request to any person for the purpose of obtaining
9information needed to perform the trustee’s duties or regarding
10property owned by the trust for which the trustee is acting as
11fiduciary, for which a living or deceased settlor is entitled,
12or owned by the deceased settlor at the time of death. The
13request must include a certification of trust (Code section
14633A.4604). A person to whom a request is presented may
15require that the trustee presenting the request provide proof
16of the trustee’s identity.
17The bill provides that a person who in good faith provides
18the property or information a trustee requests, after taking
19reasonable steps to verify the identity of the trustee and who
20has no knowledge that the representations contained in the
21request are incorrect, shall not be liable to any person for
22so acting and may assume without inquiry the existence of the
23facts contained in the request. If a person refuses to provide
24the requested property or information within 10 business days
25after receiving a request, the trustee may bring an action to
26recover the property or information or compel its delivery
27against the person to whom the trustee presented the written
28request. In an action against a person for unreasonably
29withholding property, the court may award any or all of the
30following to the trustee: damages sustained by the trust or by
31a living or deceased settlor’s estate, costs of the action, a
32penalty set forth in the bill, and reasonable attorney fees.
33Under the bill, certain provisions do not limit or change
34the right of beneficiaries, heirs, or creditors of a living or
35deceased settlor to estate or trust property to which they are
-7-1otherwise entitled.
2The bill allows an agent of a protected person to establish a
3medical assistance special needs trust and a medical assistance
4income trust pursuant to Code chapter 633C for the benefit of
5the principal.
6Certain provisions of the bill apply to estates, trusts, and
7conservatorships in existence on or after July 1, 2023, that
8were opened or created before, on, or after July 1, 2023, as
9set forth in the bill.
-8-cm/nscm/ns