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PAG LIN 1 1 Section 1. Section 614.14, subsection 4, paragraph b, Code 1 2 1997, is amended to read as follows: 1 3 b. That, to the knowledge of the trustee, the person 1 4 creating the trust was under no disability or infirmity at the 1 5 time the trust was created. 1 6 Sec. 2. Section 627.6, subsection 8, Code 1997, is amended 1 7 by adding the following new paragraph: 1 8 NEW PARAGRAPH. f. All contributions to and assets in the 1 9 following list of plans or contracts and the accumulated 1 10 earnings, and market increases in value, therefrom: 1 11 simplified employee pension plans, self-employed pension 1 12 plans, Keogh plans, individual retirement accounts, and 1 13 similar plans for retirement investments in the future 1 14 authorized under federal law. However, contributions to a 1 15 plan shall not be exempt to the extent that the contributions 1 16 for the twenty-four month period prior to the date the 1 17 exemption is claimed or execution is issued exceed ten 1 18 thousand dollars in the aggregate over and above the average 1 19 contributions that had been made to the plan or plans by the 1 20 debtor or the debtor's employer or both in the five tax years 1 21 ending prior to the twenty-four-month period before the date 1 22 the exemption is claimed or the execution is issued. The 1 23 exception to the exemption in this paragraph for contributions 1 24 within the twenty-four-month period prior to the date the 1 25 exemption is claimed or execution is issued shall not include 1 26 the interest and any accumulation on that interest in any new 1 27 plans or contracts that are used to replace prior plans, 1 28 contracts, or policies that would have been excludable from a 1 29 bankruptcy estate or that the debtor could have claimed exempt 1 30 from execution at the time of the transfer. For purposes of 1 31 this paragraph, market increases in value shall include, but 1 32 not be limited to, dividends, stock splits, interest, and 1 33 appreciation. 1 34 Sec. 3. Section 633.10, subsection 4, Code 1997, is 1 35 amended by adding the following new paragraph: 2 1 NEW PARAGRAPH. d. A trust that is administered solely or 2 2 jointly by an individual trustee or trustees is not subject to 2 3 the jurisdiction of the court unless jurisdiction is invoked 2 4 by a trustee or beneficiary, or if otherwise provided by the 2 5 governing instrument. Upon application of all trustees 2 6 administering a trust which is subject to the court's 2 7 jurisdiction, and following notice to beneficiaries as 2 8 provided in section 633.40, subsection 4, the court shall 2 9 release the trust from further jurisdiction unless one or more 2 10 beneficiaries object, on the condition that jurisdiction may 2 11 thereafter be invoked by a trustee or beneficiary. The 2 12 provisions of this paragraph shall be effective for 2 13 applications filed on or after July 1, 1997. 2 14 Sec. 4. Section 633.31, Code 1997, is amended by adding 2 15 the following new subsection: 2 16 NEW SUBSECTION. 3. The fee set forth in subsection 2, 2 17 paragraph "k", shall not be charged on any property 2 18 transferred to a testamentary trust from an estate that has 2 19 been administered in this state and for which court costs have 2 20 been assessed and paid. 2 21 Sec. 5. NEW SECTION. 633.357 CUSTODIAL INDIVIDUAL 2 22 RETIREMENT ACCOUNTS. 2 23 1. As used in this section, unless the context otherwise 2 24 requires: 2 25 a. "Custodial independent retirement account" means an 2 26 individual retirement account in accordance with section 2 27 408(a) of the Internal Revenue Code, the assets of which are 2 28 not held in trust. 2 29 b. "Designator" means a person entitled to designate the 2 30 beneficiary or beneficiaries of a custodial independent 2 31 retirement account. 2 32 2. The assets of a custodial independent retirement 2 33 account shall pass on or after the death of the designator of 2 34 the custodial independent retirement account to the 2 35 beneficiary or beneficiaries specified in the custodial 3 1 independent retirement account agreement signed by the 3 2 designator or designated by the designator in writing pursuant 3 3 to the custodial independent retirement account agreement. 3 4 Assets that pass to a beneficiary pursuant to this section 3 5 shall not be considered part of the designator's probate 3 6 estate except to the extent that the designator's estate is a 3 7 beneficiary. The designation of a beneficiary shall not be 3 8 considered testamentary and does not have to be witnessed. 3 9 3. This section applies to a custodial independent 3 10 retirement account established and a beneficiary designation 3 11 made prior to, on, or after the effective date of this Act. 3 12 This section shall be considered to be declarative of the law 3 13 as the law existed immediately prior to the effective date of 3 14 this Act. 3 15 4. This section shall not be construed to imply that 3 16 assets or benefits that are payable upon the death of a person 3 17 to a beneficiary or beneficiaries designated in or pursuant to 3 18 a written arrangement not described in this section, other 3 19 than a will, are part of the person's probate estate or that 3 20 the arrangement is testamentary. 3 21 Sec. 6. Section 633.410, Code 1997, is amended to read as 3 22 follows: 3 23 633.410 LIMITATION ON FILING CLAIMS AGAINST DECEDENT'S 3 24 ESTATE. 3 25 All claims against a decedent's estate, other than charges, 3 26 whether due or to become due, absolute or contingent, 3 27 liquidated or unliquidated, founded on contract or otherwise, 3 28 are forever barred against the estate, the personal 3 29 representative, and the distributees of the estate, unless 3 30 filed with the clerk within the later to occur of four months 3 31 after the date of the second publication of the notice to 3 32 creditors or, as to each claimant whose identity is reasonably 3 33 ascertainable, one month after service of notice by ordinary 3 34 mail to the claimant's last known address. However, notice is 3 35 not required to be given by mail to any creditor whose claim 4 1 will be paid or otherwise satisfied during administration and 4 2 the personal representative may waive the limitation on filing 4 3 provided under this section. This section does not bar claims 4 4 for which there is insurance coverage, to the extent of the 4 5 coverage,claims for debts created under section 249A.54 6relating to the recovery of medical assistance payments,or 4 7 claimants entitled to equitable relief due to peculiar 4 8 circumstances. 4 9 Sec. 7. Section 633.440, Code 1997, is amended to read as 4 10 follows: 4 11 633.440 CONTENTS OF NOTICE OF DISALLOWANCE. 4 12 Such a notice of disallowance shall advise the claimant 4 13 that the claim has been disallowed and will be forever barred 4 14 unless the claimant shall within twenty days after the date of 4 15 mailing the notice, file a request for hearing on the claim 4 16 with the clerk, and mail a copy of such request for hearing to 4 17 the personal representative and the attorney of record, if 4 18 any, by certified mail. 4 19 Sec. 8. Section 633.681, Code 1997, is amended to read as 4 20 follows: 4 21 633.681 ASSETS OF MINOR WARD EXHAUSTED. 4 22 When the assets of a minor ward's conservatorship are 4 23 exhausted or consist of personal property only of an aggregate 4 24 value not in excess offourten thousand dollars, the court, 4 25 upon application or upon its own motion, may terminate the 4 26 conservatorshipand. The order for termination shall direct 4 27 the conservator to delivertheany property remaining after 4 28 the payment of allowed claims and expenses of administration 4 29 tothe parent or other person entitled to the custody of the4 30minor ward, for the use of the ward, after payment of allowed4 31claims and expenses of administrationa custodian under any 4 32 uniform transfers to minors Act. Such delivery shall have the 4 33 same force and effect as if delivery had been made to the ward 4 34 after attaining majority. 4 35 Sec. 9. Section 633.704, subsection 3, paragraph a, Code 5 1 1997, is amended to read as follows: 5 2 a. PASSAGE OF DISCLAIMED INTEREST OR PROPERTY. Unless the 5 3 transferor has otherwise provided, the property, interest, or 5 4 right disclaimed, and any future interest which is to take 5 5 effect in possession or enjoyment at or after the termination 5 6 of the interest or right disclaimed, descends or shall be 5 7 distributed as if the disclaimant has died prior to the date 5 8 of the transfer, or if the disclaimant is one designated to 5 9 take pursuant to a power of appointment exercised by 5 10 testamentary instrument, then as if the disclaimant has 5 11 predeceased the donee of the power unless the donee of the 5 12 power has otherwise provided. In every case, the disclaimer 5 13 relates back for all purposes to the date of the transfer.In5 14the case of a disclaiming beneficiary under a will, other than5 15a spouse, the property, interest, or right disclaimed passes5 16to the heirs of the disclaimant unless from the terms of the5 17transferor's will the intent is clear and explicit to the5 18contrary, in which event the property, interest, or right5 19disclaimed passes pursuant to the will.In the case of a 5 20 disclaimer under a will by a spouse the property, interest, or 5 21 right disclaimed lapses unless from the terms of the 5 22 transferor's will the intent is clear and explicit to the 5 23 contrary. 5 24 EXPLANATION 5 25 This bill addresses the probate code. 5 26 Code section 614.14 is amended by limiting the warranty the 5 27 trustee makes regarding the trustor's condition at the time of 5 28 creation of the trust to that within the trustee's knowledge. 5 29 The bill adds to Code section 627.6 an exemption from 5 30 execution relating to a debtor's pension and retirement 5 31 accounts. A limitation is placed on the exemption for above 5 32 average contributions made two years prior to claiming the 5 33 exemption. 5 34 The bill adds a new paragraph to Code section 633.10 5 35 releasing certain testamentary trusts from the jurisdiction of 6 1 the court. 6 2 The bill amends Code section 633.31 to exempt certain 6 3 property transferred from a testamentary trust from certain 6 4 statutory fees, to prohibit a trust from being charged fees 6 5 after the related estate has already paid court costs. 6 6 The bill creates a new Code section 633.357 to provide that 6 7 the beneficiary designation by the owner of a custodial 6 8 independent retirement account controls the distribution of 6 9 the benefits and the account is not a part of the testamentary 6 10 disposition of a deceased owner subject to the terms of the 6 11 will of the owner unless the designated beneficiary of the 6 12 account is the estate of the owner. 6 13 The bill repeals a 1995 change to Code section 633.410 that 6 14 exempted claims based on medical assistance payments from the 6 15 timely filing limitation requirements. 6 16 The bill amends Code section 633.440 to require that a 6 17 request for a hearing on a notice of disallowance of a claim 6 18 against an estate must be mailed not only to the personal 6 19 representative, but also to any attorney of record. 6 20 The bill amends Code section 633.681 to permit a court to 6 21 terminate a conservatorship where the value of the property is 6 22 $10,000 or less, an increase over the current statutory amount 6 23 of $4,000. The bill provides that upon termination of 6 24 conservatorship, any property remaining after the payment of 6 25 allowed claims and expenses shall be delivered directly to a 6 26 custodian under any uniform transfer to minors Act. 6 27 The bill amends Code section 633.704 to remove language 6 28 regarding a disclaimer made by a beneficiary, to make it 6 29 consistent with the antilapse provisions of Code sections 6 30 633.273 and 633.274. 6 31 LSB 1730SV 77 6 32 tm/sc/14
Text: SF00511 Text: SF00513 Text: SF00500 - SF00599 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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