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House Study Bill 81

Bill Text

PAG LIN
  1  1    Section 1.  Section 614.14, subsection 4, paragraph b, Code
  1  2 1999, 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 1999, 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, Roth
  1 13 individual retirement accounts, and similar plans for
  1 14 retirement investments in the future authorized under federal
  1 15 law.  However, contributions to a plan shall not be exempt to
  1 16 the extent that the contributions for the twenty-four month
  1 17 period prior to the date the exemption is claimed or execution
  1 18 is issued exceed ten thousand dollars in the aggregate over
  1 19 and above the average contributions that had been made to the
  1 20 plan or plans by the debtor or the debtor's employer or both
  1 21 in the five tax years ending prior to the twenty-four-month
  1 22 period before the date the exemption is claimed or the
  1 23 execution is issued.  The exception to the exemption in this
  1 24 paragraph for contributions within the twenty-four-month
  1 25 period prior to the date the exemption is claimed or execution
  1 26 is issued shall not include the interest and any accumulation
  1 27 on that interest in any new plans or contracts that are used
  1 28 to replace prior plans, contracts, or policies that would have
  1 29 been excludable from a bankruptcy estate or that the debtor
  1 30 could have claimed exempt from execution at the time of the
  1 31 transfer.  For purposes of this paragraph, market increases in
  1 32 value shall include, but not be limited to, dividends, stock
  1 33 splits, interest, and appreciation.
  1 34    Sec. 3.  Section 633.10, subsection 4, Code 1999, 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 1999, 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 or a Roth individual
  2 28 retirement account in accordance with section 408A of the
  2 29 Internal Revenue Code, the assets of which are not held in
  2 30 trust.
  2 31    b.  "Designator" means a person entitled to designate the
  2 32 beneficiary or beneficiaries of a custodial independent
  2 33 retirement account.
  2 34    2.  The assets of a custodial independent retirement
  2 35 account shall pass on or after the death of the designator of
  3  1 the custodial independent retirement account to the
  3  2 beneficiary or beneficiaries specified in the custodial
  3  3 independent retirement account agreement signed by the
  3  4 designator or designated by the designator in writing pursuant
  3  5 to the custodial independent retirement account agreement.
  3  6 Assets that pass to a beneficiary pursuant to this section
  3  7 shall not be considered part of the designator's probate
  3  8 estate except to the extent that the designator's estate is a
  3  9 beneficiary.  The designation of a beneficiary shall not be
  3 10 considered testamentary and does not have to be witnessed.
  3 11    3.  This section applies to a custodial independent
  3 12 retirement account established and a beneficiary designation
  3 13 made prior to, on, or after the effective date of this Act.
  3 14 This section shall be considered to be declarative of the law
  3 15 as the law existed immediately prior to the effective date of
  3 16 this Act.
  3 17    4.  This section shall not be construed to imply that
  3 18 assets or benefits that are payable upon the death of a person
  3 19 to a beneficiary or beneficiaries designated in or pursuant to
  3 20 a written arrangement not described in this section, other
  3 21 than a will, are part of the person's probate estate or that
  3 22 the arrangement is testamentary.
  3 23    Sec. 6.  Section 633.410, Code 1999, is amended to read as
  3 24 follows:
  3 25    633.410  LIMITATION ON FILING CLAIMS AGAINST DECEDENT'S
  3 26 ESTATE.
  3 27    All claims against a decedent's estate, other than charges,
  3 28 whether due or to become due, absolute or contingent,
  3 29 liquidated or unliquidated, founded on contract or otherwise,
  3 30 are forever barred against the estate, the personal
  3 31 representative, and the distributees of the estate, unless
  3 32 filed with the clerk within the later to occur of four months
  3 33 after the date of the second publication of the notice to
  3 34 creditors or, as to each claimant whose identity is reasonably
  3 35 ascertainable, one month after service of notice by ordinary
  4  1 mail to the claimant's last known address.  However, notice is
  4  2 not required to be given by mail to any creditor whose claim
  4  3 will be paid or otherwise satisfied during administration and
  4  4 the personal representative may waive the limitation on filing
  4  5 provided under this section.  This section does not bar claims
  4  6 for which there is insurance coverage, to the extent of the
  4  7 coverage, claims for debts created under section 249A.5
  4  8 relating to the recovery of medical assistance payments, or
  4  9 claimants entitled to equitable relief due to peculiar
  4 10 circumstances.
  4 11    Sec. 7.  Section 633.440, Code 1999, is amended to read as
  4 12 follows:
  4 13    633.440  CONTENTS OF NOTICE OF DISALLOWANCE.
  4 14    Such a notice of disallowance shall advise the claimant
  4 15 that the claim has been disallowed and will be forever barred
  4 16 unless the claimant shall within twenty days after the date of
  4 17 mailing the notice, file a request for hearing on the claim
  4 18 with the clerk, and mail a copy of such request for hearing to
  4 19 the personal representative and the attorney of record, if
  4 20 any, by certified mail.
  4 21    Sec. 8.  Section 633.704, subsection 3, paragraph a, Code
  4 22 1999, is amended to read as follows:
  4 23    a.  PASSAGE OF DISCLAIMED INTEREST OR PROPERTY.  Unless the
  4 24 transferor has otherwise provided, the property, interest, or
  4 25 right disclaimed, and any future interest which is to take
  4 26 effect in possession or enjoyment at or after the termination
  4 27 of the interest or right disclaimed, descends or shall be
  4 28 distributed as if the disclaimant has died prior to the date
  4 29 of the transfer, or if the disclaimant is one designated to
  4 30 take pursuant to a power of appointment exercised by
  4 31 testamentary instrument, then as if the disclaimant has
  4 32 predeceased the donee of the power unless the donee of the
  4 33 power has otherwise provided.  In every case, the disclaimer
  4 34 relates back for all purposes to the date of the transfer.  In
  4 35 the case of a disclaiming beneficiary under a will, other than
  5  1 a spouse, the property, interest, or right disclaimed passes
  5  2 to the heirs of the disclaimant unless from the terms of the
  5  3 transferor's will the intent is clear and explicit to the
  5  4 contrary, in which event the property, interest, or right
  5  5 disclaimed passes pursuant to the will.  In the case of a
  5  6 disclaimer under a will by a spouse the property, interest, or
  5  7 right disclaimed lapses unless from the terms of the
  5  8 transferor's will the intent is clear and explicit to the
  5  9 contrary.  
  5 10                           EXPLANATION
  5 11    This bill addresses the probate code.
  5 12    Code section 614.14 is amended by limiting the warranty the
  5 13 trustee makes regarding the trustor's condition at the time of
  5 14 creation of the trust to that within the trustee's knowledge.
  5 15    The bill adds to Code section 627.6 an exemption from
  5 16 execution relating to a debtor's pension and retirement
  5 17 accounts.  A limitation is placed on the exemption for above
  5 18 average contributions made two years prior to claiming the
  5 19 exemption.
  5 20    The bill adds a new paragraph to Code section 633.10
  5 21 releasing certain testamentary trusts from the jurisdiction of
  5 22 the court.
  5 23    The bill amends Code section 633.31 to exempt certain
  5 24 property transferred from a testamentary trust from certain
  5 25 statutory fees, to prohibit a trust from being charged fees
  5 26 after the related estate has already paid court costs.
  5 27    The bill creates a new Code section 633.357 to provide that
  5 28 the beneficiary designation by the owner of a custodial
  5 29 independent retirement account controls the distribution of
  5 30 the benefits and the account is not a part of the testamentary
  5 31 disposition of a deceased owner subject to the terms of the
  5 32 will of the owner unless the designated beneficiary of the
  5 33 account is the estate of the owner.
  5 34    The bill repeals a 1995 change to Code section 633.410 that
  5 35 exempted claims based on medical assistance payments from the
  6  1 timely filing limitation requirements.
  6  2    The bill amends Code section 633.440 to require that a
  6  3 request for a hearing on a notice of disallowance of a claim
  6  4 against an estate must be mailed not only to the personal
  6  5 representative, but also to any attorney of record.
  6  6    The bill amends Code section 633.704 to remove language
  6  7 regarding a disclaimer made by a beneficiary, to make it
  6  8 consistent with the antilapse provisions of Code sections
  6  9 633.273 and 633.274.  
  6 10 LSB 1033YC 78
  6 11 tm/sc/14
     

Text: HSB00080                          Text: HSB00082
Text: HSB00000 - HSB00099               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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