Text: HF02517                           Text: HF02519
Text: HF02500 - HF02599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index



House File 2518

Partial Bill History

Bill Text

PAG LIN
  1  1                                           HOUSE FILE 2518     
  1  2                                  
  1  3                             AN ACT
  1  4 RELATING TO PROBATE AND TRUST LAW, INCLUDING CERTAIN NOTIFI-
  1  5    CATION PROVISIONS, CERTAIN DISTRIBUTIONS TO MINORS, THE 
  1  6    EFFECT OF DISSOLUTION OF MARRIAGE ON WILL PROVISIONS, POWERS 
  1  7    OF ATTORNEY, AND MAKING CERTAIN AMENDMENTS TO THE IOWA TRUST 
  1  8    CODE.  
  1  9 
  1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 11 
  1 12    Section 1.  Section 633.32, subsections 1 and 2, Code 1999,
  1 13 are amended to read as follows:
  1 14    1.  On May June 1 and November December 1 of each year, the
  1 15 clerk shall notify the fiduciary and the fiduciary's attorney
  1 16 of any delinquent inventories or reports due by law in any
  1 17 pending estate, trust, guardianship, or conservatorship, and
  1 18 that unless such delinquent inventory or report is filed
  1 19 within sixty days thereafter, the matter shall be reported to
  1 20 the presiding judge.  If the delinquent inventory is not filed
  1 21 within the time so specified, the fiduciary will be subject to
  1 22 removal under the provisions of section 633.65 of this Code.
  1 23    2.  On July August 1 and January February 1 of each year,
  1 24 the clerk shall report to the presiding judge all delinquent
  1 25 inventories or reports in estates, trusts, guardianships or
  1 26 conservatorships on which such notice has been given and no
  1 27 report or inventory has been filed in response to the notice.
  1 28    Sec. 2.  Section 633.108, Code 1999, is amended to read as
  1 29 follows:
  1 30    633.108  SMALL DISTRIBUTIONS TO MINORS – PAYMENT.
  1 31    Whenever a minor becomes entitled under the terms of a will
  1 32 to a bequest or legacy, to a share of the estate of an
  1 33 intestate, or to a beneficial interest in a trust fund upon
  1 34 the distribution of the trust fund, and the value of the
  1 35 bequest, legacy, share, or interest does not exceed the sum of
  2  1 ten thousand dollars, and a conservator for the minor has not
  2  2 been appointed, the court having jurisdiction of the
  2  3 distribution of the funds may, in its discretion, upon the
  2  4 application of the fiduciary, enter an order authorizing the
  2  5 fiduciary to pay the bequest, legacy, share, or interest the
  2  6 personal representative or trustee may pay the bequest,
  2  7 legacy, share, or interest to a custodian under any uniform
  2  8 transfers to minors Act.  Receipt by the custodian, when
  2  9 presented to the court or filed with the report of
  2 10 distribution of the fiduciary, shall have the same force and
  2 11 effect as though the payment had been made to a duly appointed
  2 12 and qualified conservator for the minor.
  2 13    Sec. 3.  Section 633.271, Code 1999, is amended to read as
  2 14 follows:
  2 15    633.271  EFFECT OF DIVORCE OR DISSOLUTION.
  2 16    If after making a will the testator is divorced or the
  2 17 marriage is dissolved, all provisions in the will in favor of
  2 18 the testator's spouse, including but not limited to
  2 19 dispositions, appointments relating to property, and
  2 20 nominations to serve in any fiduciary or representative
  2 21 capacity, are thereby revoked.  In the event the testator and
  2 22 spouse remarry each other, the provisions of the will revoked
  2 23 by the divorce or dissolution of marriage shall be reinstated
  2 24 unless otherwise revoked by the testator.
  2 25    Sec. 4.  Section 633.304, unnumbered paragraph 2, Code
  2 26 1999, is amended to read as follows:
  2 27    As used in this section, "heir" means only such person as
  2 28 would, in an intestate estate, be entitled to a share under
  2 29 section 633.219, subsection 1, 2, or 3, or 4 of section
  2 30 633.219.
  2 31    Sec. 5.  Section 633.305, unnumbered paragraph 2, Code
  2 32 1999, is amended to read as follows:
  2 33    As used in this section, "heir" means only such person as
  2 34 would, in an intestate estate, be entitled to a share under
  2 35 section 633.219, subsection 1, 2, or 3, or 4 of section
  3  1 633.219.
  3  2    Sec. 6.  Section 633.705, Code 1999, is amended to read as
  3  3 follows:
  3  4    633.705  WHEN POWER OF ATTORNEY NOT AFFECTED BY DISABILITY.
  3  5    1.  Whenever a principal designates another the principal's
  3  6 attorney in fact or agent by a power of attorney in writing
  3  7 and the writing contains the words "This power of attorney
  3  8 shall not be affected by disability of the principal", or
  3  9 "This power of attorney shall become effective upon the
  3 10 disability of the principal", or similar words showing the
  3 11 intent of the principal that the authority conferred shall be
  3 12 exercisable notwithstanding the principal's disability, the
  3 13 authority of the attorney in fact or agent is exercisable as
  3 14 provided in the power on behalf of the principal
  3 15 notwithstanding later disability or incapacity of the
  3 16 principal or later uncertainty as to whether the principal is
  3 17 dead or alive.  All acts done by the attorney in fact or agent
  3 18 pursuant to the power during any period of disability or
  3 19 incompetence or uncertainty as to whether the principal is
  3 20 dead or alive have the same effect and inure to the benefit of
  3 21 and bind the principal and the principal's heirs, devisees and
  3 22 personal representatives as if the principal were alive,
  3 23 competent and not disabled.  If a conservator thereafter is
  3 24 appointed for the principal, the attorney in fact or agent,
  3 25 during the continuance of the appointment, shall account to
  3 26 the conservator rather than the principal, and the conservator
  3 27 shall have the power to revoke the power of attorney on behalf
  3 28 of the principal.
  3 29    2.  An affidavit, executed by the attorney in fact or agent
  3 30 stating that the attorney in fact or agent did not have, at
  3 31 the time of doing an act pursuant to the power of attorney,
  3 32 actual knowledge of the revocation or termination of the power
  3 33 of attorney by death or by the act of the principal, is, in
  3 34 the absence of fraud, conclusive proof of the nonrevocation or
  3 35 nontermination of the power at that time.  If the exercise of
  4  1 the power requires execution and delivery of any instrument
  4  2 which is recordable, the affidavit when properly acknowledged
  4  3 is also recordable.
  4  4    Sec. 7.  Section 633.1102, subsection 15, as enacted by
  4  5 1999 Iowa Acts, chapter 125, section 2, is amended to read as
  4  6 follows:
  4  7    15.  "Term" or "terms", when used in relation to a trust,
  4  8 means the manifestation of the settlor's intent regarding a
  4  9 trust's provisions at the time of the trust's creation or
  4 10 amendment.  "Term" includes those concepts expressed directly
  4 11 in writing, as well as those inferred from constructional
  4 12 preferences or rules, or by other proof admissible under the
  4 13 rules of evidence.
  4 14    Sec. 8.  Section 633.2106, subsections 1 and 2, as enacted
  4 15 by 1999 Iowa Acts, chapter 125, section 13, are amended to
  4 16 read as follows:
  4 17    1.  Where the owner of property gratuitously transfers the
  4 18 property and manifests in the trust instrument an intention
  4 19 that the transferee should hold the property in trust but the
  4 20 trust fails, the transferee holds the trust estate as a
  4 21 resulting trust for the transferor or the transferor's estate,
  4 22 unless all either of the following is true:
  4 23    a.  The transferor manifested in the trust instrument an
  4 24 intention that no resulting trust should arise.
  4 25    b.  The intended trust fails for illegality and the policy
  4 26 against unjust enrichment of the transferee is outweighed by
  4 27 the policy against giving relief to a person who has entered
  4 28 into an illegal transaction.
  4 29    2.  Where the owner of property gratuitously transfers the
  4 30 property subject to a trust which is properly declared and
  4 31 which has been fully performed without exhausting the trust
  4 32 estate, the trustee holds the surplus as a resulting trust for
  4 33 the transferor or the transferor's estate, unless the
  4 34 transferor manifested in the trust instrument an intention
  4 35 that no resulting trust of the surplus should arise.
  5  1    Sec. 9.  Section 633.2201, as enacted by 1999 Iowa Acts,
  5  2 chapter 125, section 15, is amended to read as follows:
  5  3    633.2201  TERMINATION OR MODIFICATION OF TRUST.
  5  4    1.  In addition to the methods specified in sections
  5  5 633.2202 through 633.2205, a trust terminates when any of the
  5  6 following occurs:
  5  7    a.  The term of the trust expires.
  5  8    b.  The trust purpose is fulfilled.
  5  9    c.  The trust purpose becomes unlawful or impossible to
  5 10 fulfill.
  5 11    d.  The trust is revoked.
  5 12    2.  On termination of a trust, the trustee may exercise the
  5 13 powers necessary to wind up the affairs of the trust and
  5 14 distribute the trust property to those entitled to the trust
  5 15 property.
  5 16    3.  For purposes of sections 633.2202 through 633.2205, a
  5 17 beneficiary is limited to a person that is an eligible
  5 18 recipient of income or principal, or would receive principal
  5 19 or income from the trust if it were terminated.
  5 20    Sec. 10.  Section 633.2203, as enacted by 1999 Iowa Acts,
  5 21 chapter 125, section 17, is amended to read as follows:
  5 22    633.2203  MODIFICATION OR TERMINATION OF IRREVOCABLE TRUST
  5 23 IF NO MATERIAL PURPOSE.
  5 24    1.  An irrevocable trust may be terminated or modified
  5 25 either by the court or upon with the consent of all of the
  5 26 beneficiaries if continuance of the trust on the same or
  5 27 different terms is not necessary to carry out a material
  5 28 purpose.
  5 29    2.  Upon petition to the court by the settlor, trustee, or
  5 30 other interested person, the court may set aside an improper
  5 31 termination or modification by the beneficiaries.
  5 32    3. 2.  Upon termination of the trust, the trustee court
  5 33 shall distribute order the distribution of trust property in
  5 34 accordance with the probable intention of the settlor or as
  5 35 agreed by the beneficiaries.
  6  1    4. 3.  For purposes of this section, the consent of a
  6  2 person who may bind a beneficiary is considered the consent of
  6  3 the beneficiary.
  6  4    Sec. 11.  1999 Iowa Acts, chapter 125, is amended by adding
  6  5 the following new section:
  6  6    SEC. 110.  NEW SECTION.  633.2203A  MODIFICATION OF
  6  7 ADMINISTRATIVE PROVISIONS BY COURT FOR CHANGE OF
  6  8 CIRCUMSTANCES.
  6  9    On petition by a trustee or beneficiary, the court may
  6 10 modify the administrative provisions of the trust, if, owing
  6 11 to circumstances not known to the settlor and not anticipated
  6 12 by the settlor, the continuation of the trust under its terms
  6 13 would defeat or substantially impair the accomplishment of the
  6 14 purposes of the trust.  If necessary to carry out the purposes
  6 15 of the trust, the court may order the trustee to do acts that
  6 16 are not authorized or are forbidden by the trust instrument.
  6 17    Sec. 12.  Section 633.2206, subsection 1, as enacted by
  6 18 1999 Iowa Acts, chapter 125, section 20, is amended to read as
  6 19 follows:
  6 20    1.  A trustee, without approval of court, may combine two
  6 21 or more trusts with substantially similar beneficial interests
  6 22 unless the trust is a court reporting trust.
  6 23    Sec. 13.  Section 633.2207, as enacted by 1999 Iowa Acts,
  6 24 chapter 125, section 21, is amended to read as follows:
  6 25    633.2207  DIVISION OF TRUSTS.
  6 26    1.  Without approval of a court, a trustee may divide a
  6 27 trust into two or more separate trusts with substantially
  6 28 similar terms if the division will not defeat or substantially
  6 29 impair the accomplishment of the trust purposes or the rights
  6 30 of the beneficiaries unless the trust is a court reporting
  6 31 trust.
  6 32    2.  On petition by a trustee or beneficiary, the court may
  6 33 divide a trust into two or more separate trusts, whether or
  6 34 not their terms are similar, if the court determines that
  6 35 dividing the trust is in the best interest of the
  7  1 beneficiaries and will not defeat or substantially impair the
  7  2 accomplishment of the trust purposes or the rights of the
  7  3 beneficiaries.  To facilitate the division, the trustee may
  7  4 divide the trust assets in kind, by pro rata or non-pro rata
  7  5 division, or by any combination of the methods.
  7  6    Sec. 14.  Section 633.3101, subsection 1, as enacted by
  7  7 1999 Iowa Acts, chapter 125, section 25, is amended to read as
  7  8 follows:
  7  9    1.  The competency necessary to To create, revoke, or
  7 10 modify a revocable trust, that contains dispositive provisions
  7 11 upon the death of the settlor is the same as the competency
  7 12 required to make a will must be competent.  An aggrieved
  7 13 person shall have all causes of action and remedies available
  7 14 to the aggrieved person in attacking the creation, revocation,
  7 15 or modification of a revocable trust as one would if attacking
  7 16 the propriety of the execution of a will.
  7 17    Sec. 15.  Section 633.3104, subsection 2, as enacted by
  7 18 1999 Iowa Acts, chapter 125, section 28, is amended to read as
  7 19 follows:
  7 20    2.  Following the death of a settlor, the property of a
  7 21 revocable trust subject to the settlor's power of revocation
  7 22 at the time of death is subject to the claims of the settlor's
  7 23 creditors and costs of administration of the settlor's estate
  7 24 to the extent of the value of the property over which the
  7 25 settlor's settlor had a power of revocation and, if the
  7 26 settlor's estate is inadequate to satisfy those claims and
  7 27 costs.
  7 28    Sec. 16.  Section 633.3107, subsection 1, as enacted by
  7 29 1999 Iowa Acts, chapter 125, section 31, is amended to read as
  7 30 follows:
  7 31    1.  If, after executing a revocable trust, the settlor is
  7 32 divorced or the settlor's marriage is dissolved, all
  7 33 provisions in the trust in favor of the settlor's spouse
  7 34 including, but not limited to, dispositions, appointments of
  7 35 property, and nominations to serve in any fiduciary or
  8  1 representative capacity are revoked by divorce or dissolution
  8  2 of marriage.
  8  3    Sec. 17.  Section 633.3108, as enacted by 1999 Iowa Acts,
  8  4 chapter 125, section 32, is amended to read as follows:
  8  5    633.3108  LIMITATION ON CONTEST OF REVOCABLE TRUST.
  8  6    Unless notice is given as provided in section 633.3109, the
  8  7 following provisions shall apply:
  8  8    1.  Unless previously barred by adjudication, consent, or
  8  9 other limitation, a proceeding to contest the validity of a
  8 10 revocable trust must be brought no later than one year
  8 11 following the death of the settlor.
  8 12    2.  Unless the trustee is a party to a pending proceeding
  8 13 contesting its validity, six months following the death of the
  8 14 settlor, the trustee of a revocable trust may assume the
  8 15 trust's validity and proceed to distribute the trust property
  8 16 in accordance with the terms of the trust, without liability
  8 17 for so doing.  Liability for an improper distribution in such
  8 18 a case is solely on the beneficiaries.
  8 19    3.  If notice is given pursuant to section 633.3109, the
  8 20 six month period in subsection 2 is ineffectual and the
  8 21 applicable time period shall be determined by section
  8 22 633.3109.
  8 23    Sec. 18.  Section 633.3109, as enacted by 1999 Iowa Acts,
  8 24 chapter 125, section 33, is amended to read as follows:
  8 25    633.3109  NOTICE TO CREDITORS, HEIRS, SPOUSE, AND
  8 26 BENEFICIARIES.
  8 27    1.  As used in this section, "intestate heir" means only
  8 28 such person as would, in an intestate estate, be entitled to a
  8 29 share under section 633.219, subsection 1, 2, or 3, or 4.
  8 30    2.  A creditor of a deceased settlor of a revocable trust
  8 31 must bring suit to enforce its claim against the assets of the
  8 32 decedent's trust within one year of the decedent's death or be
  8 33 forever barred from collection against the trust assets.  If a
  8 34 probate administration is commenced for the decedent and
  8 35 notice is properly given pursuant to section 633.230 or
  9  1 633.304, a creditor's rights shall be determined under those
  9  2 sections and section 633.3104.
  9  3    3.  If no notice is given to creditors and heirs pursuant
  9  4 to subsection 1 2, a creditor's rights may be established or
  9  5 terminated if the trustee gives notice as follows:
  9  6    a.  The trustee shall publish a notice once each week for
  9  7 two consecutive weeks in a daily or weekly newspaper of
  9  8 general circulation published in the county in which the
  9  9 settlor was domiciled decedent was a resident at the time of
  9 10 death, and in any county of which the decedent was a
  9 11 nonresident but in which some real estate of the trust is
  9 12 located.  If the decedent was not a resident of Iowa, but the
  9 13 principal place of administration is in Iowa, the trustee
  9 14 shall publish notice in the county that is the principal place
  9 15 of administration pursuant to section 633.6102.
  9 16    b.  If the decedent was a nonresident of the county in
  9 17 which some real estate of the trust is located, and at any
  9 18 time during the pendency of the trust administration the
  9 19 trustee has knowledge of the name and address of a person
  9 20 believed to own or possess a claim which will not, or may not,
  9 21 be paid or otherwise satisfied during administration, the
  9 22 trustee shall provide a notice by ordinary mail to each such
  9 23 claimant at the claimant's last known address.
  9 24    c.  As soon as practicable, the trustee shall give a notice
  9 25 by ordinary mail to the surviving spouse, the intestate heirs
  9 26 of the decedent, and each beneficiary under the trust whose
  9 27 identities are reasonably ascertainable, at such person's last
  9 28 known addresses.
  9 29    d.  The notice in paragraphs "a", "b", and "c" shall
  9 30 include notification of the decedent's death, and the fact
  9 31 that any action to contest the validity of the trust must be
  9 32 brought within the later to occur of sixty days from the date
  9 33 of the second publication of the notice made pursuant to
  9 34 paragraph "a" or thirty days from the date of mailing of the
  9 35 notice pursuant to paragraph "b" or "c".  A person who does
 10  1 not make a claim within the appropriate period is forever
 10  2 barred.
 10  3    e.  The trustee shall give notice to debtors to make
 10  4 payment, and to creditors having claims against the trust
 10  5 assets to mail proof of their claim to the trustee via
 10  6 certified mail, return receipt requested, within the later to
 10  7 occur of sixty days from the second publication of the notice
 10  8 or thirty days from the date of mailing of the notice, or
 10  9 thereafter be forever barred.
 10 10    4.  The notice described in subsection 3 shall be
 10 11 substantially in the following form:
 10 12    To all persons regarding _______________, deceased, who
 10 13 died on or about _____________________, (year)____.  You are
 10 14 hereby notified that ____________ is the trustee of the
 10 15 __________ Trust.  At this time, no probate administration is
 10 16 contemplated with regard to the above-referenced decedent's
 10 17 estate.
 10 18    Any action to contest the validity of the trust must be
 10 19 brought in the District Court of ________________ County,
 10 20 Iowa, within the later to occur of sixty days from the date of
 10 21 second publication of this notice, or thirty days from the
 10 22 date of mailing this notice to all heirs of the decedent,
 10 23 spouse of the decedent, and beneficiaries under the trust
 10 24 whose identities are reasonably ascertainable.  Any claim not
 10 25 filed within this period shall be forever barred.
 10 26    Notice is further given that all persons indebted to the
 10 27 decedent or to the trust are requested to make immediate
 10 28 payment to the undersigned trustee.  Creditors having claims
 10 29 against the trust must mail them to the trustee at the address
 10 30 listed below via certified mail, return receipt requested.
 10 31 Unless creditor claims are mailed by the later to occur of
 10 32 sixty days from the second publication of this notice or
 10 33 thirty days from the date of mailing this notice, a claim
 10 34 shall be forever barred, unless otherwise allowed or paid.  
 10 35    Dated this _______ day of ______________, (year)____.
 11  1 _________________________________________ Trust
 11  2                            ____________________________
 11  3                            Trustee
 11  4                            Address: ___________________
 11  5                                     ___________________
 11  6    Date of second publication ______ day of ____________,
 11  7 (year) ____.
 11  8    5.  The claimant either must receive satisfaction of its
 11  9 claim within sixty days of mailing its claim to the trustee,
 11 10 or must file suit against the trust to enforce collection of
 11 11 the creditor's claim within sixty days of mailing its claim to
 11 12 the trustee.  The trustee and creditor may agree to extend the
 11 13 limitations period for filing an action to enforce the claim.
 11 14 If the claimant fails to properly file its claim within the
 11 15 established time period or bring an action to enforce its
 11 16 claim within the established time period, the creditor's claim
 11 17 shall be forever barred.
 11 18    Sec. 19.  Section 633.3111, subsection 2, as enacted by
 11 19 1999 Iowa Acts, chapter 125, section 35, is amended to read as
 11 20 follows:
 11 21    2.  A trustee shall be entitled to indemnification from the
 11 22 beneficiaries for all amounts paid to creditors under this
 11 23 section, to the extent of distributions made.
 11 24    Sec. 20.  Section 633.4101, as enacted by 1999 Iowa Acts,
 11 25 chapter 125, section 36, is amended to read as follows:
 11 26    633.4101  ACCEPTANCE OR REJECTION OF TRUST BY DECLINATION
 11 27 TO SERVE AS TRUSTEE.
 11 28    1.  A person named as trustee accepts the office of trustee
 11 29 by doing one of the following:
 11 30    a.  Signing the trust instrument, or signing a separate
 11 31 written acceptance.
 11 32    b.  Except as provided in subsection 3, knowingly accepting
 11 33 delivery of the trust property or exercising powers or
 11 34 performing duties as trustee.
 11 35    2.  A person named as trustee who has not yet accepted the
 12  1 office of trustee may in writing reject the trust decline to
 12  2 serve as trustee.
 12  3    3.  If there is an immediate risk of damage to the trust
 12  4 property, the person named as trustee may act to preserve the
 12  5 trust property without accepting the office of trustee, if
 12  6 within a reasonable time after acting, the person delivers a
 12  7 written rejection of the trust declination to serve to the
 12  8 settlor, or if the settlor is dead or lacks capacity, to the
 12  9 beneficiaries eligible to receive income or principal
 12 10 distributions from the trust.
 12 11    Sec. 21.  Section 633.4104, subsection 1, as enacted by
 12 12 1999 Iowa Acts, chapter 125, section 39, is amended to read as
 12 13 follows:
 12 14    1.  The person named as trustee rejects the trust declines
 12 15 to serve as trustee.
 12 16    Sec. 22.  Section 633.4105, as enacted by 1999 Iowa Acts,
 12 17 chapter 125, section 40, is amended to read as follows:
 12 18    633.4105  FILLING VACANCY.
 12 19    1.  For purposes of this section, "adult beneficiaries"
 12 20 shall not include either of the following:
 12 21    a.  Beneficiaries who are not competent and are not
 12 22 represented by a guardian, conservator, or agent.
 12 23    b.  Beneficiaries who are not entitled or eligible to
 12 24 receive trust income or a distribution of principal were the
 12 25 trust to terminate at the time the agreement is made.
 12 26    2. 1.  A trustee must be appointed to fill a vacancy in the
 12 27 office of the trustee only if the trust has no trustee or the
 12 28 terms of the trust require a vacancy in the office of
 12 29 cotrustee to be filled.
 12 30    3. 2.  A vacancy in the office of trustee shall be filled
 12 31 according to the following:
 12 32    a.  By the person named in or nominated pursuant to the
 12 33 method specified by the terms of the trust.
 12 34    b.  If the terms of the trust do not name a person or
 12 35 specify a method for filling the vacancy, or if the person
 13  1 named or nominated pursuant to the method specified fails to
 13  2 accept, one of the following methods shall be used:
 13  3    (1)  By a trust company designated by agreement of the
 13  4 adult beneficiaries specified in subsection 1.
 13  5    (2) (1)  By majority vote of all adult beneficiaries and
 13  6 the parent or legal guardian representative of any minor or
 13  7 incompetent beneficiary, as defined by section 633.6303.
 13  8    (3) (2)  By a person appointed by the court on petition of
 13  9 an interested person or of a person named as trustee by the
 13 10 terms of the trust.  The court, in selecting a trustee, shall
 13 11 consider any nomination made by the adult beneficiaries and
 13 12 representatives.
 13 13    3.  Beneficiaries entitled to vote are those who are
 13 14 currently entitled or eligible to receive trust income or a
 13 15 distribution of principal if the trust were to terminate at
 13 16 the time of the vote.
 13 17    Sec. 23.  Section 633.4107, subsection 1, as enacted by
 13 18 1999 Iowa Acts, chapter 125, section 42, is amended to read as
 13 19 follows:
 13 20    1.  A trustee may be removed in accordance with the terms
 13 21 of the trust, by the court on its own motion, or on petition
 13 22 of a settlor, cotrustee, or beneficiary under section
 13 23 633.6202.
 13 24    Sec. 24.  Section 633.4111, subsection 2, paragraph b, as
 13 25 enacted by 1999 Iowa Acts, chapter 125, section 46, is amended
 13 26 to read as follows:
 13 27    b.  Each beneficiary who was given the last preceding
 13 28 account accounting.
 13 29    Sec. 25.  Section 633.4504, as enacted by 1999 Iowa Acts,
 13 30 chapter 125, section 76, is amended to read as follows:
 13 31    633.4504  LIMITATION OF ACTION AGAINST TRUSTEE FOLLOWING
 13 32 FINAL ACCOUNT.
 13 33    1.  Unless previously barred by adjudication, consent, or
 13 34 other limitation, a claim against a trustee for breach of
 13 35 trust is barred as to a beneficiary who has received a final
 14  1 account or other report adequately disclosing the existence of
 14  2 the claim, unless a proceeding to assert the claim is
 14  3 commenced within one year after the later earlier of the
 14  4 receipt of the account accounting or report or of the
 14  5 termination of the trust relationship between the trustee and
 14  6 beneficiary.  An account or report adequately discloses the
 14  7 existence of a claim if it provides sufficient information so
 14  8 that the beneficiary knows of the claim or reasonably should
 14  9 have inquired into its existence.
 14 10    2.  For the purpose of subsection 1, a beneficiary is
 14 11 deemed to have received an account or report in the following
 14 12 instances:
 14 13    a.  In the case of an adult who is reasonably capable of
 14 14 understanding the account or report, if it is received by the
 14 15 adult personally.
 14 16    b.  In the case of an adult who is not reasonably capable
 14 17 of understanding the account or report, if it is received by
 14 18 the adult's legal representative, including a guardian ad
 14 19 litem or other person appointed for this purpose.
 14 20    c.  In the case of a minor, if it is received by the
 14 21 minor's guardian or conservator or, if the minor does not have
 14 22 a guardian or conservator, if it is received by a parent of
 14 23 the minor who does not have a conflict of interest.
 14 24    3.  Any claim for breach of trust against a trustee who has
 14 25 presented a final report to a beneficiary more than one year
 14 26 prior to the effective date of this Act shall be time barred
 14 27 unless some exception stated in this section applies which
 14 28 tolls the statute.  Any claim arising under this section
 14 29 within one year of the effective date of the Act shall be time
 14 30 barred after one year unless an exception applies to toll the
 14 31 statute.
 14 32    Sec. 26.  1999 Iowa Acts, chapter 125, section 69, is
 14 33 repealed.  
 14 34 
 14 35 
 15  1                                                             
 15  2                               BRENT SIEGRIST
 15  3                               Speaker of the House
 15  4 
 15  5 
 15  6                                                             
 15  7                               MARY E. KRAMER
 15  8                               President of the Senate
 15  9 
 15 10    I hereby certify that this bill originated in the House and
 15 11 is known as House File 2518, Seventy-eighth General Assembly.
 15 12 
 15 13 
 15 14                                                             
 15 15                               ELIZABETH ISAACSON
 15 16                               Chief Clerk of the House
 15 17 Approved                , 2000
 15 18 
 15 19 
 15 20                            
 15 21 THOMAS J. VILSACK
 15 22 Governor
     

Text: HF02517                           Text: HF02519
Text: HF02500 - HF02599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

Return To Home index


© 2000 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Mon Aug 28 13:36:55 CDT 2000
URL: /DOCS/GA/78GA/Legislation/HF/02500/HF02518/000424.html
jhf