Text: S05234 Text: S05236 Text: S05200 - S05299 Text: S Index Bills and Amendments: General Index Bill History: General Index
Get Version To Print
PAG LIN
1 1 Amend Senate File 2424 as follows:
1 2 #1. Page 6, by inserting after line 9 the
1 3 following:
1 4 "Sec. . NEW SECTION. 633.699A MODIFICATION OR
1 5 TERMINATION OF TESTAMENTARY TRUST.
1 6 1. On petition by a trustee or beneficiary, and
1 7 after notice to all interested parties as determined
1 8 by the court, the court may modify the provisions of a
1 9 testamentary trust or may terminate a testamentary
1 10 trust in whole or in part if the continuation of the
1 11 trust under its terms would defeat or substantially
1 12 impair the accomplishment of the purposes of the
1 13 trust, or if the purposes of the trust have been
1 14 fulfilled, or have become illegal or impossible to
1 15 fulfill.
1 16 a. The court may order the trustee to do acts that
1 17 are not authorized or are forbidden by the will
1 18 creating the trust, or may order that the trustee be
1 19 prohibited from performing acts that are required by
1 20 the terms of the trust.
1 21 b. The existence of a trust provision restraining
1 22 transfer of the beneficiary's interest does not
1 23 prevent application of this subsection.
1 24 c. If the court orders the termination of the
1 25 trust, disposition of all property shall be made
1 26 according to the will provisions that address the
1 27 disposition of the property in the event the trust is
1 28 terminated. However, if the will does not address the
1 29 disposition of the property in the event the trust is
1 30 terminated, the court shall determine the disposition
1 31 of the trust property.
1 32 2. On petition by a trustee or beneficiary, and
1 33 after notice to all interested parties as determined
1 34 by the court, if the court determines that the fair
1 35 market value of a testamentary trust has become so low
1 36 in relation to the cost of administration that
1 37 continuation of the trust under its existing terms
1 38 will defeat or substantially impair the accomplishment
1 39 of its purposes, the court may, in its discretion,
1 40 order termination of the trust, modification of the
1 41 trust, or appointment of a new trustee.
1 42 a. If the court orders the termination of the
1 43 trust, disposition of all property shall be made
1 44 according to the will provisions that address the
1 45 disposition of the property in the event the trust is
1 46 terminated. However, if the will does not address the
1 47 disposition of the property in the event the trust is
1 48 terminated, the court shall determine the disposition
1 49 of the trust property.
1 50 b. The existence of a trust provision restraining
2 1 transfer of the beneficiary's interest does not
2 2 prevent application of this subsection.
2 3 3. In the case of a charitable testamentary trust,
2 4 the attorney general shall be considered an interested
2 5 party under this section. This section shall not be
2 6 construed to limit intervention by the attorney
2 7 general according to section 633.303."
2 8 #2. By renumbering as necessary.
2 9
2 10
2 11
2 12 ELAINE SZYMONIAK
2 13 SF 2424.501 76
2 14 jls/jw
Text: S05234 Text: S05236 Text: S05200 - S05299 Text: S Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: Senate Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Thu Mar 7 03:20:06 CST 1996
URL: /DOCS/GA/76GA/Legislation/S/05200/S05235/960306.html
jhf