House File 609 S-5052 Amend House File 609, as passed by the House, as 1 follows: 2 1. Page 1, line 1, after < Code > by inserting 3 < Supplement > 4 2. Page 2, after line 22 by inserting: 5 < Sec. ___. Section 633.350, Code 2011, is amended 6 to read as follows: 7 633.350 Title to decedent’s estate —— when property 8 passes —— possession and control thereof —— liability 9 for administration expenses, debts, and family 10 allowance. 11 Except as otherwise provided in this probate code, 12 when a person dies, the title to the person’s property, 13 real and personal, passes to the person to whom it is 14 devised by the person’s last will, or, in the absence 15 of such disposition, to the persons who succeed to the 16 estate as provided in this probate code, but all of 17 the property shall be subject to the possession of the 18 personal representative as provided in section 633.351 19 and to the control of the court for the purposes of 20 administration, sale, or other disposition under the 21 provisions of law, and such property, except homestead 22 and other exempt property, shall be chargeable with the 23 payment of debts and charges against of the estate. 24 There shall be no priority as between real and personal 25 property, except as provided in this probate code or by 26 the will of the decedent. If real property is titled 27 at any time in a decedent’s estate, such property 28 shall be treated as titled in the name of the personal 29 representative of the estate. 30 Sec. ___. Section 633.351, Code 2011, is amended to 31 read as follows: 32 633.351 Possession of real and personal property. 33 If there is no distributee of the real estate 34 present and competent to take possession, or if there 35 is a lease of such real estate outstanding, or if the 36 distributees present and competent consent thereto 37 During the period of administration , the personal 38 representative shall take possession of such the 39 decedent’s real estate, except the homestead and 40 other property exempt to the surviving spouse. Every 41 personal representative shall take possession of 42 all the personal property of the decedent, except 43 the property exempt to the surviving spouse. The 44 personal representative may maintain an action for 45 the possession of such real and personal property 46 or to determine the title to any property of the 47 decedent. Until property is distributed, the 48 personal representative shall take reasonable steps 49 to safeguard such property, pay any expenses related 50 -1- HF609.4493 (3) 84 rh/rj 1/ 5 #1. #2.

to such property, and collect any income generated 1 by such property. Unless otherwise provided by the 2 decedent’s will, all such expenses shall be paid from 3 the residuary estate and all such income shall be 4 considered a part of the residuary estate. 5 Sec. ___. Section 633.352, Code 2011, is amended to 6 read as follows: 7 633.352 Collection of rents and payment of taxes and 8 charges. 9 Unless otherwise provided by the will, the personal 10 representative shall allocate and distribute provisions 11 of chapter 637 that conflict with this part 3 shall 12 not apply to the allocation and distribution of estate 13 income of an estate in accordance with chapter 637 . 14 Sec. ___. Section 633.355, Code 2011, is amended to 15 read as follows: 16 633.355 Delivery of specific devise after nine 17 twelve months. 18 Unless the court, for cause shown, determines 19 that the possession of the personal representative 20 shall continue for a longer period, the personal 21 representative shall deliver all specifically devised 22 property to the devisees entitled thereto after the 23 expiration of nine twelve months from the date of 24 appointment of the personal representative. This 25 section shall not preclude the court from directing 26 that such delivery be made before such period has 27 expired, nor shall the personal representative 28 be prevented from sooner settling the estate and 29 delivering such property at an earlier time . > 30 3. Page 7, after line 1 by inserting: 31 < Sec. ___. Section 633A.3102, subsection 5, Code 32 2011, is amended to read as follows: 33 5. The settlor’s powers with respect to revocation 34 or modification may be exercised by an agent under a 35 power of attorney only and to the extent the power 36 of attorney expressly so authorizes. if all of the 37 following apply: 38 a. The trust instrument expressly authorizes an 39 agent under a power of attorney to exercise such 40 powers. 41 b. The power of attorney expressly authorizes an 42 agent acting under the power of attorney to exercise 43 such powers. > 44 4. Page 12, line 24, after < Code > by inserting 45 < Supplement > 46 5. Page 18, after line 18 by inserting: 47 < Sec. ___. Section 635.7, Code 2011, is amended to 48 read as follows: 49 635.7 Report and inventory —— value and conversion. 50 -2- HF609.4493 (3) 84 rh/rj 2/ 5 #3. #4. #5.

1. The personal representative is required to file 1 the report and inventory for which provision is made in 2 section 633.361 , including all probate and nonprobate 3 assets. This chapter does not exempt the personal 4 representative from complying with the requirements of 5 section 422.27 , 450.22 , 450.58 , 633.480 , or 633.481 , 6 and the administration of an estate whether converted 7 to or from a small estate shall be considered one 8 proceeding pursuant to section 633.330 . 9 2. If the The report and inventory and report shows 10 shall show the gross value of probate assets subject to 11 the jurisdiction of this state which exceed . 12 3. If the gross value of probate assets subject 13 to the jurisdiction of this state exceeds the amount 14 permitted for a small estate under section 635.1 , the 15 estate shall be administered as provided in chapter 16 633 . 17 3. 4. If the inventory report and inventory in 18 an estate probated pursuant to chapter 633 indicates 19 shows the gross value of the probate assets subject 20 to the jurisdiction of this state does not exceed the 21 amount permitted under section 635.1 , the estate shall 22 be administered as a small estate upon the filing of 23 a statement by the personal representative that the 24 estate is a small estate. 25 4. 5. Other interested parties may convert 26 proceedings from a small estate to a regular estate or 27 from a regular estate to a small estate only upon good 28 cause shown with approval from the court. 29 Sec. ___. Section 635.8, Code 2011, is amended to 30 read as follows: 31 635.8 Closing by sworn statement. 32 1. The personal representative shall file with the 33 court a closing statement and proof of service thereof 34 within a reasonable time from the date of issuance 35 of the letters of appointment , and the . The closing 36 statement shall be verified or affirmed under penalty 37 of perjury , stating all of the following: 38 a. To the best knowledge of the personal 39 representative, the gross value of the probate assets 40 subject to the jurisdiction of this state does not 41 exceed the amount permitted under section 635.1 . 42 b. The estate has been fully administered and will 43 be disbursed and distributed to persons entitled to the 44 estate thereto if no objection is filed to the closing 45 statement after the requisite time period has expired 46 as provided in subsection 2 and the accounting and 47 proposed distribution within thirty days after service 48 thereof . 49 c. A description of the disbursement and An 50 -3- HF609.4493 (3) 84 rh/rj 3/ 5

accounting and proposed distribution of the estate 1 including an accurate description of all the real 2 estate of which the decedent died seized, stating the 3 nature and extent of the interest in the real estate 4 and its disposition. 5 d. A copy of the closing statement and a notice 6 of an opportunity to object to and request a hearing 7 has been sent by proper notice , as provided in section 8 633.40 , to all interested parties. 9 e. The personal representative has complied 10 with A statement as to whether or not all statutory 11 requirements pertaining to taxes have been complied 12 with , including whether federal estate tax was paid 13 or a return was filed, whether Iowa inheritance tax 14 was paid or a return was filed, whether the decedent’s 15 final personal income taxes were filed, whether 16 fiduciary income tax returns for the estate were filed, 17 and due has been paid, whether a lien continues to 18 exist for any federal or state estate tax , and whether 19 inheritance tax was paid or a tax return was filed in 20 this state . 21 f. The amount of fees to be paid to the personal 22 representative and the personal representative’s 23 attorney with the appropriate documentation showing 24 compliance with subsection 4. 25 2. If no actions or proceedings involving the 26 estate are pending in the court thirty days after 27 notice service of the closing statement is filed , 28 the the estate shall be distributed according to the 29 closing statement. 30 3. The estate shall close and the personal 31 representative shall be discharged after distribution 32 upon the earlier of either of the following: 33 a. The filing of a statement of disbursement of 34 assets with the clerk by the personal representative an 35 affidavit of mailing or other proof of service of the 36 closing statement and a statement of asset distribution 37 by the personal representative . 38 b. An additional thirty days have passed after 39 notice of the Sixty days after the filing of the 40 closing statement is filed and an affidavit of mailing 41 or other proof of service thereof . 42 3. 4. The closing statement shall include a 43 statement as to the amount of fees to be paid for 44 services rendered by the personal representative 45 and the personal representative’s attorney in 46 administration of the estate. The fees for the 47 personal representative shall not exceed three percent 48 of the gross value of the probate assets of the 49 estate, unless the personal representative itemizes 50 -4- HF609.4493 (3) 84 rh/rj 4/ 5

the personal representative’s services to the estate. 1 The personal representative’s attorney shall be paid 2 reasonable fees as approved by the court or as agreed 3 to in writing by the personal representative at or 4 before and such writing shall be executed by the 5 time of filing the probate inventory or as approved 6 by the court . All interested parties shall have the 7 opportunity to object and request a hearing as to all 8 fees reported in the closing statement. 9 4. 5. If a closing statement is not filed within 10 twelve months of the date of issuance of a letter of 11 appointment, an interlocutory report shall be filed 12 within such time period. Such report shall be provided 13 to all interested parties at least once every six 14 months until the closing statement has been filed 15 unless excused by the court for good cause shown. 16 The provisions of section 633.473 requiring final 17 settlement within three years shall apply to an estate 18 probated pursuant to this chapter . A closing statement 19 filed under this section has the same effect as final 20 settlement of the estate under chapter 633 . > 21 6. Page 18, line 23, by striking < 2011 > and 22 inserting < 2012 > 23 7. Page 18, line 25, by striking < 2011 > and 24 inserting < 2012 > 25 8. Page 18, line 31, by striking < 2011 > and 26 inserting < 2012 > 27 9. Page 18, line 34, by striking < 2011 > and 28 inserting < 2012 > 29 10. Page 18, after line 34 by inserting: 30 < 5. The section of this Act amending section 31 633A.3102 applies to revocable trusts and powers of 32 attorney in existence on or after July 1, 2012. > 33 11. Title page, by striking lines 1 and 2 and 34 inserting < An Act relating to trusts and estates 35 including the administration of small estates, and 36 certain state inheritance tax provisions, and including 37 applicability provisions. > 38 12. By renumbering as necessary. 39 ______________________________ COMMITTEE ON JUDICIARY EUGENE S. FRAISE, CHAIRPERSON -5- HF609.4493 (3) 84 rh/rj 5/ 5 #6. #7. #8. #9. #10. #11. #12.