Text: SSB00194                          Text: SSB00196
Text: SSB00100 - SSB00199               Text: SSB Index
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Senate Study Bill 195

Bill Text

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

Text: SSB00194                          Text: SSB00196
Text: SSB00100 - SSB00199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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