Senate File 2350 - Enrolled

PAG LIN



  1  1                                             SENATE FILE 2350
  1  2
  1  3                             AN ACT
  1  4 RELATING TO TRUSTS AND ESTATES INCLUDING THE ADMINISTRATION
  1  5    OF SMALL ESTATES, AND INCLUDING RETROACTIVE AND OTHER
  1  6    APPLICABILITY PROVISIONS.
  1  7
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9
  1 10    Section 1.  Section 12.71, subsection 8, Code 2007, is
  1 11 amended to read as follows:
  1 12    8.  Bonds issued under the provisions of this section are
  1 13 declared to be issued for a general public and governmental
  1 14 purpose and all bonds issued under this section shall be
  1 15 exempt from taxation by the state of Iowa and the interest on
  1 16 the bonds shall be exempt from the state income tax and the
  1 17 state inheritance and estate tax.
  1 18    Sec. 2.  Section 12.81, subsection 8, Code 2007, is amended
  1 19 to read as follows:
  1 20    8.  Bonds issued under the provisions of this section are
  1 21 declared to be issued for a general public and governmental
  1 22 purpose and all bonds issued under this section shall be
  1 23 exempt from taxation by the state of Iowa and the interest on
  1 24 the bonds shall be exempt from the state income tax and the
  1 25 state inheritance and estate tax.
  1 26    Sec. 3.  Section 12.91, subsection 9, Code Supplement 2007,
  1 27 is amended to read as follows:
  1 28    9.  Bonds issued under the provisions of this section are
  1 29 declared to be issued for a general public and governmental
  1 30 purpose and all bonds issued under this section shall be
  1 31 exempt from taxation by the state of Iowa and the interest on
  1 32 the bonds shall be exempt from the state income tax and the
  1 33 state inheritance and estate tax.
  1 34    Sec. 4.  Section 16.177, subsection 8, Code 2007, is
  1 35 amended to read as follows:
  2  1    8.  Bonds issued under this section are declared to be
  2  2 issued for an essential public and governmental purpose and
  2  3 all bonds issued under this section shall be exempt from
  2  4 taxation by the state of Iowa and the interest on the bonds
  2  5 shall be exempt from the state income tax and the state
  2  6 inheritance and estate tax.
  2  7    Sec. 5.  Section 321.47, unnumbered paragraph 2, Code 2007,
  2  8 is amended to read as follows:
  2  9    The persons entitled under the laws of descent and
  2 10 distribution of an intestate's property to the possession and
  2 11 ownership of a vehicle owned in whole or in part by a
  2 12 decedent, upon filing an affidavit stating the name and date
  2 13 of death of the decedent, the right to possession and
  2 14 ownership of the persons filing the affidavit, and that there
  2 15 has been no administration of the decedent's estate, which
  2 16 instrument shall also contain an agreement to indemnify
  2 17 creditors of the decedent who would be entitled to levy
  2 18 execution upon the motor vehicle to the extent of the value of
  2 19 the motor vehicle, are entitled upon fulfilling the other
  2 20 requirements of this chapter, to the issuance of a
  2 21 registration card for the interest of the decedent in the
  2 22 vehicle and a certificate of title to it.  If a decedent dies
  2 23 testate, and either the will is not probated or is admitted to
  2 24 probate without administration, the persons entitled to the
  2 25 possession and ownership of a vehicle owned in whole or in
  2 26 part by the decedent may file an affidavit and, upon
  2 27 fulfilling the other requirements of this chapter, are
  2 28 entitled to the issuance of a registration card for the
  2 29 interest of the decedent in the vehicle and a certificate of
  2 30 title to the vehicle.  The affidavit shall contain the same
  2 31 information and indemnity agreement as is required in cases of
  2 32 intestacy pursuant to this section.  A requirement of chapter
  2 33 450 or 451 shall not be considered satisfied by the filing of
  2 34 the affidavit provided for in this section.  If, from the
  2 35 records in the office of the county treasurer, there appear to
  3  1 be any liens on the vehicle, the certificate of title shall
  3  2 contain a statement of the liens unless the application is
  3  3 accompanied by proper evidence of their satisfaction or
  3  4 extinction.  Evidence of extinction may consist of, but is not
  3  5 limited to, an affidavit of the applicant stating that a
  3  6 security interest was foreclosed as provided in chapter 554,
  3  7 article 9, part 6.
  3  8    Sec. 6.  Section 421.60, subsection 2, paragraph c,
  3  9 unnumbered paragraph 1, Code 2007, is amended to read as
  3 10 follows:
  3 11    If the notice of assessment or denial of a claim for refund
  3 12 relates to a tax return filed pursuant to section 422.14 or
  3 13 chapter 450, or 450A, or 451, by the taxpayer which designates
  3 14 an individual as an authorized representative of the taxpayer
  3 15 with respect to that return, or if a power of attorney has
  3 16 been filed with the department by the taxpayer which
  3 17 designates an individual as an authorized representative of
  3 18 the taxpayer with respect to any tax that is included in the
  3 19 notice of assessment or denial of a claim for refund, a copy
  3 20 of the notice together with any additional information
  3 21 required to be sent to the taxpayer shall be sent to the
  3 22 authorized representative as well.
  3 23    Sec. 7.  Section 450.7, subsection 2, unnumbered paragraph
  3 24 1, Code 2007, is amended to read as follows:
  3 25    Notice of the lien is not required to be recorded.  The
  3 26 rights of the state under the lien have priority over all
  3 27 subsequent mortgages, purchases, or judgment creditors; and a
  3 28 conveyance after the decedent's death of the property subject
  3 29 to a lien does not discharge the property except as otherwise
  3 30 provided in this chapter.  However, if additional tax is
  3 31 determined to be owing under this chapter or chapter 451 after
  3 32 the lien has been released under paragraph "a" or "b", the
  3 33 lien does not have priority over subsequent mortgages,
  3 34 purchases, or judgment creditors unless notice of the lien is
  3 35 recorded in the office of the recorder of the county where the
  4  1 estate is probated, or where the property is located if the
  4  2 estate has not been administered.  The department of revenue
  4  3 may release the lien by filing in the office of the clerk of
  4  4 the court in the county where the property is located, the
  4  5 decedent owner died, or the estate is pending or was
  4  6 administered, one of the following:
  4  7    Sec. 8.  Section 450.68, unnumbered paragraph 2, Code 2007,
  4  8 is amended to read as follows:
  4  9    Federal tax returns, copies of returns, return information
  4 10 as defined in section 6103(b) of the Internal Revenue Code,
  4 11 and state inheritance tax returns, which are required to be
  4 12 filed with the department for the enforcement of the
  4 13 inheritance and estate tax laws of this state, shall be deemed
  4 14 and held as confidential by the department.  However, such
  4 15 returns or return information, may be disclosed by the
  4 16 director to officers or employees of other state agencies,
  4 17 subject to the same confidentiality restrictions imposed on
  4 18 the officers and employees of the department.
  4 19    Sec. 9.  Section 455G.6, subsection 14, Code 2007, is
  4 20 amended to read as follows:
  4 21    14.  Bonds issued under the provisions of this section are
  4 22 declared to be issued for an essential public and governmental
  4 23 purpose and all bonds issued under this chapter shall be
  4 24 exempt from taxation by the state of Iowa and the interest on
  4 25 the bonds shall be exempt from the state income tax and the
  4 26 state inheritance and estate tax.
  4 27    Sec. 10.  Section 463C.12, subsection 8, Code 2007, is
  4 28 amended to read as follows:
  4 29    8.  Tax=exempt bonds issued by the authority in connection
  4 30 with the program, which are exempt from taxation for federal
  4 31 tax purposes, are also exempt from taxation by the state of
  4 32 Iowa and the interest on these bonds is exempt from state
  4 33 income taxes and state inheritance and estate taxes.
  4 34    Sec. 11.  Section 524.1406, subsection 3, paragraph a, Code
  4 35 2007, is amended to read as follows:
  5  1    a.  Notwithstanding any contrary provision in chapter 490,
  5  2 division XIII, in determining the fair value of the
  5  3 shareholder's shares of a bank organized under this chapter or
  5  4 a bank holding company as defined in section 524.1801 in a
  5  5 transaction or event in which the shareholder is entitled to
  5  6 appraisal rights, due consideration shall be given to
  5  7 valuation factors recognized for federal and estate tax
  5  8 purposes, including discounts for minority interests and
  5  9 discounts for lack of marketability.  However, any payment
  5 10 made to shareholders under section 490.1324 shall be in an
  5 11 amount not less than the stockholders' equity in the bank
  5 12 disclosed in its last statement of condition filed under
  5 13 section 524.220 or the total equity capital of the bank
  5 14 holding company disclosed in the most recent report filed by
  5 15 the bank holding company with the board of governors of the
  5 16 federal reserve system, divided by the number of shares
  5 17 outstanding.
  5 18    Sec. 12.  Section 614.14, subsections 1 and 5, Code 2007,
  5 19 are amended to read as follows:
  5 20    1.  If an interest in real estate is held of record by a
  5 21 trustee, a bona fide purchaser acquires all rights in the real
  5 22 estate which the trustee and the beneficiary of the trust had
  5 23 and any rights of persons claiming by, through or under them,
  5 24 free of any adverse claim including but not limited to claims
  5 25 arising under section 561.13 or claims relating to an interest
  5 26 in real estate arising under section 633.238.
  5 27    5.  a.  A person holding an adverse claim arising or
  5 28 existing prior to January 1, 1992 2009, by reason of a
  5 29 transfer of an interest in real estate by a trustee, or a
  5 30 purported trustee, shall not file an action to enforce such
  5 31 claim after December 31, 1993 2010, at law or in equity, in
  5 32 any court to recover or establish any interest in or claim to
  5 33 such real estate, legal or equitable, against the holder of
  5 34 the record title to the real estate.
  5 35    b.  An action based upon an adverse claim arising on or
  6  1 after January 1, 1992 2009, by reason of a transfer of an
  6  2 interest in real estate by a trustee, or a purported trustee,
  6  3 shall not be maintained either at law or in equity, in any
  6  4 court to recover or establish any interest in or claim to such
  6  5 real estate, legal or equitable, against the holder of the
  6  6 record title to the real estate, legal or equitable, more than
  6  7 one year after the date of recording of the instrument from
  6  8 which such claim may arise.
  6  9    Sec. 13.  Section 614.14, Code 2007, is amended by adding
  6 10 the following new subsection:
  6 11    NEW SUBSECTION.  7.  An interest in real estate currently
  6 12 or previously held of record by a trust shall be deemed to be
  6 13 held of record by the trustee of such trust.
  6 14    Sec. 14.  Section 633.3, subsection 4, Code 2007, is
  6 15 amended to read as follows:
  6 16    4.  Charges == includes costs of administration, funeral
  6 17 expenses, cost of monument, and federal and state estate
  6 18 taxes.
  6 19    Sec. 15.  Section 633.175, Code 2007, is amended to read as
  6 20 follows:
  6 21    633.175  WAIVER OF BOND BY COURT.
  6 22    The court, for good cause shown, may exempt any fiduciary
  6 23 from giving bond, if the court finds that the interests of
  6 24 creditors and distributees will not thereby be prejudiced.
  6 25 However, the court, except as provided in section 633.172,
  6 26 subsection 2, shall not exempt a conservator from giving bond
  6 27 in a conservatorship with total assets of more than ten
  6 28 twenty=five thousand dollars, excluding real property, unless
  6 29 it is a voluntary conservatorship in which the petitioner is
  6 30 eighteen years of age or older and has waived bond in the
  6 31 petition.
  6 32    Sec. 16.  Section 633.241, Code 2007, is amended to read as
  6 33 follows:
  6 34    633.241  TIME FOR ELECTION TO RECEIVE LIFE ESTATE IN
  6 35 HOMESTEAD.
  7  1    If the surviving spouse does not make an election to
  7  2 receive the life estate in the homestead and file it with the
  7  3 clerk within four months from the date of second publication
  7  4 of notice to creditors service of notice under section
  7  5 633.237, it shall be conclusively presumed that the surviving
  7  6 spouse waives the right to make the election.  The court on
  7  7 application may, prior to the expiration of the period of four
  7  8 months, for cause shown, enter an order extending the time for
  7  9 making the election.
  7 10    Sec. 17.  Section 633.267, Code 2007, is amended to read as
  7 11 follows:
  7 12    633.267  CHILDREN BORN OR ADOPTED AFTER EXECUTION OF WILL.
  7 13    When If a testator fails to provide in the testator's will
  7 14 for any of the testator's children born to or adopted by the
  7 15 testator after the making execution of the testator's last
  7 16 will, such child, whether born before or after the testator's
  7 17 death, shall receive a share in the estate of the testator
  7 18 equal in value to that which the child would have received
  7 19 under section 633.211, 633.212, or 633.219, whichever section
  7 20 or sections are applicable, if the testator had died
  7 21 intestate, unless it appears from the will that such omission
  7 22 was intentional.
  7 23    Sec. 18.  Section 633.374, Code 2007, is amended to read as
  7 24 follows:
  7 25    633.374  ALLOWANCE TO SURVIVING SPOUSE.
  7 26    1.  If the personal representative of the estate is not the
  7 27 decedent's spouse, the personal representative of the estate
  7 28 shall cause written notice concerning support to be mailed to
  7 29 the surviving spouse pursuant to section 633.40, subsection 5.
  7 30 The notice shall inform the surviving spouse of the surviving
  7 31 spouse's right to apply, within four months of service of the
  7 32 notice, for support for a period of twelve months following
  7 33 the death of the decedent, and for support of the decedent's
  7 34 dependents who reside with the spouse for the same period of
  7 35 time.
  8  1    2.  The court shall, upon application, set off and order
  8  2 paid to the surviving spouse, as part of the costs of
  8  3 administration, sufficient of the decedent's property as it
  8  4 deems reasonable for the proper support of the surviving
  8  5 spouse for the period of twelve months following the death of
  8  6 the decedent.  When said If the application is not made by the
  8  7 personal representative, notice of hearing upon the
  8  8 application shall be given to the personal representative.
  8  9 The court shall take into consideration the station in life of
  8 10 the surviving spouse and the assets and condition of the
  8 11 estate.  The allowance shall also include such additional
  8 12 amount as the court deems reasonable for the proper support,
  8 13 during such period, of dependents of the decedent who reside
  8 14 with the surviving spouse.  Such allowance to the surviving
  8 15 spouse shall not abate upon the death or remarriage of such
  8 16 spouse.  If an application for support has not been filed
  8 17 within four months following service of the notice by or on
  8 18 behalf of the surviving spouse and the dependents of the
  8 19 decedent who reside with the surviving spouse, the surviving
  8 20 spouse and the dependents of the decedent shall be deemed to
  8 21 have waived the right to apply for support during the
  8 22 administration of the estate.
  8 23    Sec. 19.  Section 633.436, unnumbered paragraph 1, Code
  8 24 2007, is amended to read as follows:
  8 25    Except as provided in sections 633.211 and 633.212, shares
  8 26 of the distributees shall abate, for the payment of debts and
  8 27 charges, federal and state estate taxes, legacies, the shares
  8 28 of children born or adopted after the making of a will, or the
  8 29 share of the surviving spouse who elects to take against the
  8 30 will, without any preference or priority as between real and
  8 31 personal property, in the following order:
  8 32    Sec. 20.  Section 633.449, Code 2007, is amended to read as
  8 33 follows:
  8 34    633.449  PAYMENT OF FEDERAL ESTATE TAXES.
  8 35    All federal and state estate taxes (as, distinguished from
  9  1 state inheritance taxes) taxes, owing by the estate of a
  9  2 decedent shall be paid from the property of the estate, unless
  9  3 the will of the decedent, or other trust instrument, provides
  9  4 expressly to the contrary.
  9  5    Sec. 21.  Section 633A.2301, Code 2007, is amended by
  9  6 striking the section and inserting in lieu thereof the
  9  7 following:
  9  8    633A.2301  RIGHTS OF BENEFICIARY, CREDITOR, AND ASSIGNEE.
  9  9    To the extent a beneficiary's interest is not subject to a
  9 10 spendthrift provision, and subject to sections 633A.2305 and
  9 11 633.2306, the court may authorize a creditor or assignee of
  9 12 the beneficiary to reach the beneficiary's interest by levy,
  9 13 attachment, or execution of present or future distributions to
  9 14 or for the benefit of the beneficiary or other means.
  9 15    Sec. 22.  Section 633A.2302, Code 2007, is amended by
  9 16 striking the section and inserting in lieu thereof the
  9 17 following:
  9 18    633A.2302  SPENDTHRIFT PROTECTION RECOGNIZED.
  9 19    Except as otherwise provided in section 633A.2303:
  9 20    1.  A term of a trust providing that the interest of a
  9 21 beneficiary is held subject to a "spendthrift trust", or words
  9 22 of similar import, is sufficient to restrain both voluntary
  9 23 and involuntary transfer, assignment, and encumbrance of the
  9 24 beneficiary's interest.
  9 25    2.  A beneficiary shall not transfer, assign, or encumber
  9 26 an interest in a trust in violation of a valid spendthrift
  9 27 provision, and a creditor or assignee of the beneficiary of a
  9 28 spendthrift trust shall not reach the interest of the
  9 29 beneficiary or a distribution by the trustee before its
  9 30 receipt by the beneficiary.
  9 31    3.  Notwithstanding subsections 1 and 2, the interest of a
  9 32 beneficiary of a valid spendthrift trust may be reached to
  9 33 satisfy an enforceable claim against the beneficiary or the
  9 34 beneficiary's estate for either of the following:
  9 35    a.  Services or supplies for necessaries provided to or for
 10  1 the beneficiary.
 10  2    b.  Tax claims by the United States to the extent
 10  3 authorized by federal law or an applicable provision of the
 10  4 Code.
 10  5    Sec. 23.  Section 633A.2303, Code 2007, is amended by
 10  6 striking the section and inserting in lieu thereof the
 10  7 following:
 10  8    633A.2303  SPENDTHRIFT TRUSTS FOR THE BENEFIT OF SETTLOR.
 10  9    A term of a trust prohibiting an involuntary transfer of a
 10 10 beneficiary's interest shall be invalid as against claims by
 10 11 any creditors of the beneficiary if the beneficiary is the
 10 12 settlor.
 10 13    Sec. 24.  NEW SECTION.  633A.2304  AMOUNT REACHABLE BY
 10 14 CREDITORS OR TRANSFEREES OF SETTLOR.
 10 15    1.  If a settlor is a beneficiary of a trust created by the
 10 16 settlor, a transferee or creditor of the settlor may reach the
 10 17 maximum amount that the trustee could pay to or for the
 10 18 settlor's benefit.
 10 19    2.  In the case of a trust with multiple settlors, the
 10 20 amount the creditors or transferees of a particular settlor
 10 21 may reach shall not exceed the portion of the trust
 10 22 attributable to that settlor's contribution.
 10 23    3.  The assets of an irrevocable trust shall not become
 10 24 subject to the claims of creditors of the settlor of a trust
 10 25 solely due to a provision in the trust that allows a trustee
 10 26 of the trust to reimburse the settlor for income taxes payable
 10 27 on the income of the trust.  This subsection shall not limit
 10 28 the rights of the creditor of the settlor to assert a claim
 10 29 against the assets of the trust due to the retention or grant
 10 30 of any rights to the settlor under the trust instrument or any
 10 31 other beneficial interest of the settlor other than as
 10 32 specifically set forth in this subsection.
 10 33    Sec. 25.  NEW SECTION.  633A.2305  DISCRETIONARY TRUSTS ==
 10 34 EFFECT OF STANDARD.
 10 35    1.  Whether or not a trust contains a spendthrift
 11  1 provision, a creditor or assignee of a beneficiary shall not
 11  2 compel a distribution that is subject to the trustee's
 11  3 discretion, even if any of the following occur:
 11  4    a.  The discretion is expressed in the form of a standard
 11  5 of distribution.
 11  6    b.  The trustee has abused its discretion.
 11  7    2.  This section shall not apply to a creditor of a
 11  8 beneficiary or to a creditor of a deceased beneficiary
 11  9 enforcing an interest in a trust, if any, given to a
 11 10 beneficiary by the trust instrument.
 11 11    Sec. 26.  NEW SECTION.  633A.2306  COURT ACTION ==
 11 12 TRUSTEE'S DISCRETION.
 11 13    1.  If a trustee has discretion as to payments to a
 11 14 beneficiary, and refuses to make payments or exercise its
 11 15 discretion, the court shall neither order the trustee to
 11 16 exercise its discretion nor order payment from any such trust,
 11 17 if any such payment would inure, directly or indirectly, to
 11 18 the benefit of a creditor of the beneficiary.
 11 19    2.  Notwithstanding subsection 1, court may order payment
 11 20 to a creditor of a beneficiary or to a creditor of a deceased
 11 21 beneficiary if the beneficiary has or had an interest in the
 11 22 trust.
 11 23    Sec. 27.  NEW SECTION.  633A.2307  OVERDUE DISTRIBUTION.
 11 24    1.  A creditor or assignee of a beneficiary may reach a
 11 25 mandatory distribution of income or principal, including a
 11 26 distribution upon termination of the trust, if the trustee has
 11 27 not made the distribution to the beneficiary within a
 11 28 reasonable time after the required distribution date.
 11 29    2.  For the purposes of this section, "mandatory
 11 30 distribution" means a distribution required by the express
 11 31 terms of the trust of any of the following:
 11 32    a.  All of the income, net income, or principal of the
 11 33 trust.
 11 34    b.  A fraction or percentage of the income or principal of
 11 35 the trust.
 12  1    c.  A specific dollar amount from the trust.
 12  2    3.  A distribution that is subject to a condition shall not
 12  3 be considered a mandatory distribution.
 12  4    4.  If a creditor or assignee of a beneficiary is permitted
 12  5 to reach a mandatory distribution under this section, the sole
 12  6 remedy of the creditor or assignee shall be to apply to the
 12  7 court having jurisdiction of the trust after a reasonable
 12  8 period of time has expired, for a judgment ordering the
 12  9 trustee to pay to the creditor or the assignee a sum of money
 12 10 equal to the lesser of the amount of the debt or assignment,
 12 11 or the amount of the mandatory distribution described in
 12 12 subsection 2.  Any other remedy, including but not limited to
 12 13 attachment or garnishment of any interest in the trust,
 12 14 recovery of court costs or attorney fees, or placing a lien of
 12 15 any type on any trust property or on the interest of any
 12 16 beneficiary in the trust, shall not be permitted or ordered by
 12 17 any court.  Any writing signed by the beneficiary, allowing
 12 18 any remedy other than payment of the mandatory distribution
 12 19 not made to the beneficiary within a reasonable time after
 12 20 required distribution date, shall be void and shall not be
 12 21 enforced by any court.
 12 22    Sec. 28.  Section 633A.3106, Code 2007, is amended to read
 12 23 as follows:
 12 24    633A.3106  CHILDREN BORN OR ADOPTED AFTER EXECUTION OF A
 12 25 REVOCABLE TRUST.
 12 26    When a settlor fails to provide in a revocable trust for
 12 27 any of the settlor's children born to or adopted by the
 12 28 settlor after the making execution of the trust or the last
 12 29 amendment to the trust, such child, whether born before or
 12 30 after the settlor's death, shall receive a share of the trust
 12 31 equal in value to that which the child would have received
 12 32 under section 633.211, 633.212, or 633.219, whichever is
 12 33 applicable, as if the settlor had died intestate, unless it
 12 34 appears from the terms of the trust or decedent's will that
 12 35 such omission was intentional.
 13  1    Sec. 29.  Section 633A.3108, subsection 2, Code 2007, is
 13  2 amended to read as follows:
 13  3    2.  Unless the trustee is a party to a pending proceeding
 13  4 contesting its validity, on or after the date six months
 13  5 following the death of the settlor, the trustee of a revocable
 13  6 trust may assume the trust's validity and proceed to
 13  7 distribute the trust property in accordance with the terms of
 13  8 the trust, without liability for so doing.  Liability for an
 13  9 improper distribution in such a case is solely on the
 13 10 beneficiaries.
 13 11    Sec. 30.  Section 633A.3112, subsection 1, Code 2007, is
 13 12 amended to read as follows:
 13 13    1.  "Charges" includes costs of administration, funeral
 13 14 expenses, costs of monuments, and federal and state estate
 13 15 taxes.
 13 16    Sec. 31.  Section 633A.4703, unnumbered paragraph 1, Code
 13 17 Supplement 2007, is amended to read as follows:
 13 18    Except as otherwise provided by the governing instrument,
 13 19 where necessary to abate shares of the beneficiaries of a
 13 20 trust for the payment of debts and charges, federal and state
 13 21 estate taxes, bequests, the share of the surviving spouse who
 13 22 takes an elective share, and the shares of children born or
 13 23 adopted after the execution of the trust, abatement shall
 13 24 occur in the following order:
 13 25    Sec. 32.  Section 633A.5104, Code 2007, is amended to read
 13 26 as follows:
 13 27    633A.5104  INTERESTED PERSONS == PROCEEDINGS.
 13 28    The settlor, or if the settlor is deceased or not
 13 29 competent, the settlor's designee named or designated pursuant
 13 30 to section 633A.5106, the trustee, the attorney general, and
 13 31 any charitable entity or other person with a special interest
 13 32 in the trust shall be interested persons in a proceeding
 13 33 involving a charitable trust.
 13 34    Sec. 33.  NEW SECTION.  633A.5106  SETTLOR == ENFORCEMENT
 13 35 OF CHARITABLE TRUST == DESIGNATION.
 14  1    A settlor may maintain an action to enforce a charitable
 14  2 trust established by the settlor and may designate, either in
 14  3 the agreement establishing the trust or in a written statement
 14  4 signed by the settlor and delivered to the trustee, a person
 14  5 or persons, by name or by description, whether or not born at
 14  6 the time of such designation, to enforce the charitable trust
 14  7 if the settlor is deceased or not competent.
 14  8    Sec. 34.  Section 635.1, Code Supplement 2007, is amended
 14  9 to read as follows:
 14 10    635.1  WHEN APPLICABLE.
 14 11    When the gross value of the probate assets of a decedent
 14 12 subject to the jurisdiction of this state does not exceed one
 14 13 hundred thousand dollars, and upon a petition as provided in
 14 14 section 635.2 of an authorized petitioner in accordance with
 14 15 section 633.227, 633.228, or 633.290, the clerk shall issue
 14 16 letters of appointment for administration to the proposed
 14 17 personal representative named in the petition, if qualified to
 14 18 serve pursuant to section 633.63 or upon court order pursuant
 14 19 to section 633.64.  Unless otherwise provided in this chapter,
 14 20 the provisions of chapter 633 apply to an estate probated
 14 21 pursuant to this chapter.
 14 22    Sec. 35.  Section 635.2, subsections 2 and 4, Code
 14 23 Supplement 2007, are amended to read as follows:
 14 24    2.  The name and address of the surviving spouse, if any
 14 25 and the name and relationship of each beneficiary in a testate
 14 26 estate or known heirs in an intestate estate.
 14 27    4.  A statement that the probate property of the decedent
 14 28 subject to the jurisdiction of this state does not have an
 14 29 aggregate gross value of more than the amount permitted under
 14 30 the provisions of section 635.1 and the approximate amount of
 14 31 personal property and income for the purposes of setting a
 14 32 bond.
 14 33    Sec. 36.  Section 635.8, subsections 2 and 4, Code
 14 34 Supplement 2007, are amended to read as follows:
 14 35    2.  If no actions or proceedings involving the estate are
 15  1 pending in the court thirty days after notice of the closing
 15  2 statement is filed, the estate shall close and the personal
 15  3 representative shall be discharged after distribution and the
 15  4 personal representative shall be discharged. upon the earlier
 15  5 of either of the following:
 15  6    a.  The filing of a statement of disbursement of assets
 15  7 with the clerk by the personal representative.
 15  8    b.  An additional thirty days have passed after notice of
 15  9 the closing statement is filed.
 15 10    4.  If a closing statement is not filed within twelve
 15 11 months of the date of issuance of a letter of appointment, an
 15 12 interlocutory report shall be filed within such time period.
 15 13 Such report shall be provided to all interested parties at
 15 14 least once every six months until the closing statement has
 15 15 been filed unless excused by the court for good cause shown.
 15 16 The provisions of section 633.473 requiring final settlement
 15 17 within three years shall apply to an estate probated pursuant
 15 18 to this chapter.  A closing statement filed under this section
 15 19 has the same effect as final settlement of the estate under
 15 20 chapter 633.
 15 21    Sec. 37.  Chapter 451, Code 2007, is repealed.
 15 22    Sec. 38.  Section 637.609, Code 2007, is repealed.
 15 23    Sec. 39.  APPLICABILITY.
 15 24    1.  The sections of this Act amending section 614.14 apply
 15 25 retroactively to all trusts in existence on or after July 1,
 15 26 1998.
 15 27    2.  The section of this Act amending section 633.175
 15 28 applies to conservatorships in existence on or after the
 15 29 effective date of this Act.
 15 30    3.  The sections of this Act amending sections 633.241,
 15 31 633.267, and 633.374 apply to estates of decedents dying on or
 15 32 after July 1, 2008.
 15 33    4.  The section of this Act amending section 633A.3106
 15 34 applies to trusts of settlors dying on or after July 1, 2008.
 15 35    5.  The section of this Act amending section 633A.3108
 16  1 applies to trusts in existence on or after July 1, 2008.
 16  2    6.  The sections of this Act amending section 633A.5104 and
 16  3 enacting section 633A.5106 apply to charitable trusts in
 16  4 existence on or after July 1, 2008.
 16  5
 16  6
 16  7                                                             
 16  8                               JOHN P. KIBBIE
 16  9                               President of the Senate
 16 10
 16 11
 16 12                                                             
 16 13                               PATRICK J. MURPHY
 16 14                               Speaker of the House
 16 15
 16 16    I hereby certify that this bill originated in the Senate and
 16 17 is known as Senate File 2350, Eighty=second General Assembly.
 16 18
 16 19
 16 20                                                             
 16 21                               MICHAEL E. MARSHALL
 16 22                               Secretary of the Senate
 16 23 Approved                , 2008
 16 24
 16 25
 16 26                                
 16 27 CHESTER J. CULVER
 16 28 Governor