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House File 662

Partial Bill History

Bill Text

PAG LIN
  1  1 
  1  2                                        HOUSE FILE 662
  1  3 
  1  4                             AN ACT
  1  5 RELATING TO ESTATE ISSUES BY MODIFYING THE WARRANTY BY A
  1  6    TRUSTEE, JURISDICTION OF THE PROBATE COURT, FEES
  1  7    PAYABLE ON CERTAIN TRUSTS, NOTICE PROVISIONS RELATING
  1  8    TO CLAIMS AGAINST ESTATES, AND DISCLAIMERS MADE BY
  1  9    BENEFICIARIES.
  1 10 
  1 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 12 
  1 13    Section 1.  Section 614.14, subsection 4, paragraph b, Code
  1 14 1999, is amended to read as follows:
  1 15    b.  That, to the knowledge of the trustee, the person
  1 16 creating the trust was under no disability or infirmity at the
  1 17 time the trust was created.
  1 18    Sec. 2.  Section 633.10, subsection 4, Code 1999, is
  1 19 amended by adding the following new paragraph:
  1 20    NEW PARAGRAPH.  d.  A trust that is administered solely or
  1 21 jointly by an individual trustee or trustees is not subject to
  1 22 the jurisdiction of the court unless jurisdiction is invoked
  1 23 by a trustee or beneficiary, or if otherwise provided by the
  1 24 governing instrument.  Upon application of all trustees
  1 25 administering a trust which is subject to the court's
  1 26 jurisdiction, and following notice to beneficiaries as
  1 27 provided in section 633.40, subsection 4, the court shall
  1 28 release the trust from further jurisdiction unless one or more
  1 29 beneficiaries object, on the condition that jurisdiction may
  1 30 thereafter be invoked by a trustee or beneficiary.  The
  1 31 provisions of this paragraph shall be effective for
  1 32 applications filed on or after July 1, 1997.
  1 33    Sec. 3.  Section 633.31, Code 1999, is amended by adding
  1 34 the following new subsection:
  1 35    NEW SUBSECTION.  3.  The fee set forth in subsection 2,
  2  1 paragraph "k", shall not be charged on any property
  2  2 transferred to a testamentary trust from an estate that has
  2  3 been administered in this state and for which court costs have
  2  4 been assessed and paid.
  2  5    Sec. 4.  NEW SECTION.  633.357  CUSTODIAL INDIVIDUAL
  2  6 RETIREMENT ACCOUNTS.
  2  7    1.  As used in this section, unless the context otherwise
  2  8 requires:
  2  9    a.  "Custodial independent retirement account" means an
  2 10 individual retirement account in accordance with section
  2 11 408(a) of the Internal Revenue Code or a Roth individual
  2 12 retirement account in accordance with section 408A of the
  2 13 Internal Revenue Code, the assets of which are not held in
  2 14 trust.
  2 15    b.  "Designator" means a person entitled to designate the
  2 16 beneficiary or beneficiaries of a custodial independent
  2 17 retirement account.
  2 18    2.  The assets of a custodial independent retirement
  2 19 account shall pass on or after the death of the designator of
  2 20 the custodial independent retirement account to the
  2 21 beneficiary or beneficiaries specified in the custodial
  2 22 independent retirement account agreement signed by the
  2 23 designator or designated by the designator in writing pursuant
  2 24 to the custodial independent retirement account agreement.
  2 25 Assets that pass to a beneficiary pursuant to this section
  2 26 shall not be considered part of the designator's probate
  2 27 estate except to the extent that the designator's estate is a
  2 28 beneficiary.  The designation of a beneficiary shall not be
  2 29 considered testamentary and does not have to be witnessed.
  2 30    3.  This section applies to a custodial independent
  2 31 retirement account established and a beneficiary designation
  2 32 made prior to, on, or after the effective date of this Act.
  2 33 This section shall be considered to be declarative of the law
  2 34 as the law existed immediately prior to the effective date of
  2 35 this Act.
  3  1    4.  This section shall not be construed to imply that
  3  2 assets or benefits that are payable upon the death of a person
  3  3 to a beneficiary or beneficiaries designated in or pursuant to
  3  4 a written arrangement not described in this section, other
  3  5 than a will, are part of the person's probate estate or that
  3  6 the arrangement is testamentary.
  3  7    Sec. 5.  Section 633.440, Code 1999, is amended to read as
  3  8 follows:
  3  9    633.440  CONTENTS OF NOTICE OF DISALLOWANCE.
  3 10    Such a notice of disallowance shall advise the claimant
  3 11 that the claim has been disallowed and will be forever barred
  3 12 unless the claimant shall within twenty days after the date of
  3 13 mailing the notice, file a request for hearing on the claim
  3 14 with the clerk, and mail a copy of such request for hearing to
  3 15 the personal representative and the attorney of record, if
  3 16 any, by certified mail.
  3 17    Sec. 6.  Section 633.704, subsection 3, paragraph a, Code
  3 18 1999, is amended to read as follows:
  3 19    a.  PASSAGE OF DISCLAIMED INTEREST OR PROPERTY.  Unless the
  3 20 transferor has otherwise provided, the property, interest, or
  3 21 right disclaimed, and any future interest which is to take
  3 22 effect in possession or enjoyment at or after the termination
  3 23 of the interest or right disclaimed, descends or shall be
  3 24 distributed as if the disclaimant has died prior to the date
  3 25 of the transfer, or if the disclaimant is one designated to
  3 26 take pursuant to a power of appointment exercised by
  3 27 testamentary instrument, then as if the disclaimant has
  3 28 predeceased the donee of the power unless the donee of the
  3 29 power has otherwise provided.  In every case, the disclaimer
  3 30 relates back for all purposes to the date of the transfer.  In
  3 31 the case of a disclaiming beneficiary under a will, other than
  3 32 a spouse, the property, interest, or right disclaimed passes
  3 33 to the heirs of the disclaimant unless from the terms of the
  3 34 transferor's will the intent is clear and explicit to the
  3 35 contrary, in which event the property, interest, or right
  4  1 disclaimed passes pursuant to the will.  In the case of a
  4  2 disclaimer under a will by a spouse the property, interest, or
  4  3 right disclaimed lapses unless from the terms of the
  4  4 transferor's will the intent is clear and explicit to the
  4  5 contrary.  
  4  6 
  4  7                                                             
  4  8                               RON J. CORBETT
  4  9                               Speaker of the House
  4 10 
  4 11 
  4 12                                                             
  4 13                               MARY E. KRAMER
  4 14                               President of the Senate
  4 15 
  4 16    I hereby certify that this bill originated in the House and
  4 17 is known as House File 662, Seventy-eighth General Assembly.
  4 18 
  4 19 
  4 20                                                             
  4 21                               ELIZABETH ISAACSON
  4 22                               Chief Clerk of the House
  4 23 Approved                , 1999
  4 24 
  4 25 
  4 26                               
  4 27 THOMAS J. VILSACK
  4 28 Governor
     

Text: HF00661                           Text: HF00663
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