House Journal: Page 733: Tuesday, March 14, 2000
18 1. Where the owner of property gratuitously
19 transfers the property and manifests in the trust
20 instrument an intention that the transferee should
21 hold the property in trust but the trust fails, the
22 transferee holds the trust estate as a resulting trust
23 for the transferor or the transferor's estate, unless
24 all either of the following is true:
25 a. The transferor manifested in the trust
26 instrument an intention that no resulting trust should
27 arise.
28 b. The intended trust fails for illegality and the
29 policy against unjust enrichment of the transferee is
30 outweighed by the policy against giving relief to a
31 person who has entered into an illegal transaction.
32 2. Where the owner of property gratuitously
33 transfers the property subject to a trust which is
34 properly declared and which has been fully performed
35 without exhausting the trust estate, the trustee holds
36 the surplus as a resulting trust for the transferor or
37 the transferor's estate, unless the transferor
38 manifested in the trust instrument an intention that
39 no resulting trust of the surplus should arise.
40 Sec. ___. Section 633.2201, as enacted by 1999
41 Iowa Acts, chapter 125, section 15, is amended to read
42 as follows:
43 633.2201 TERMINATION OR MODIFICATION OF TRUST.
44 1. In addition to the methods specified in
45 sections 633.2202 through 633.2205, a trust terminates
46 when any of the following occurs:
47 a. The term of the trust expires.
48 b. The trust purpose is fulfilled.
49 c. The trust purpose becomes unlawful or
50 impossible to fulfill.
Page 2
1 d. The trust is revoked.
2 2. On termination of a trust, the trustee may
3 exercise the powers necessary to wind up the affairs
4 of the trust and distribute the trust property to
5 those entitled to the trust property.
6 3. For purposes of sections 633.2202 through
7 633.2205, a beneficiary is limited to a person that is
8 an eligible recipient of income or principal, or would
9 receive principal or income from the trust if it were
10 terminated.
11 Sec. ___. Section 633.2203, as enacted by 1999
12 Iowa Acts, chapter 125, section 17, is amended to read
13 as follows:
14 633.2203 MODIFICATION OR TERMINATION OF
15 IRREVOCABLE TRUST IF NO MATERIAL PURPOSE.
16 1. An irrevocable trust may be terminated or
© 2000 Cornell College and
League of Women Voters of Iowa
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