S.F. 2309 Section 1. Section 450.4, subsection 5, Code 2009, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 5. a. On that portion of the decedent’s interest in an 4 employer-provided or employer-sponsored retirement plan or on 5 that portion of the decedent’s individual retirement account 6 that will be subject to federal income tax when paid to the 7 beneficiary. This exemption shall apply regardless of the 8 identity of the beneficiary and regardless of the number of 9 payments to be made after the decedent’s death. 10 b. For purposes of this exemption: 11 (1) An individual retirement account includes an individual 12 retirement annuity or any other arrangement as defined in 13 section 408 of the Internal Revenue Code. 14 (2) An “employer-provided or employer-sponsored retirement 15 plan” includes a qualified retirement plan as defined in section 16 401 of the Internal Revenue Code, a governmental or nonprofit 17 employer’s deferred compensation plan as defined in section 18 457 of the Internal Revenue Code, and an annuity as defined in 19 section 403 of the Internal Revenue Code. 20 Sec. 2. Section 565B.6, subsection 3, paragraph c, Code 21 2009, is amended to read as follows: 22 c. The transfer is authorized by the court if all transfers 23 (including transfers, including the transfer to be made and 24 prior transfers) transfers, exceed ten twenty-five thousand 25 dollars in value. Transfers by a personal representative, 26 trustee, or conservator shall not be aggregated, but each 27 personal representative, trustee, or conservator shall be 28 treated separately. 29 Sec. 3. Section 633.231, Code 2009, is amended to read as 30 follows: 31 633.231 Notice in intestate estates —— medical assistance 32 claims. 33 1. Upon opening administration of an intestate estate, 34 the administrator shall, in accordance with section 633.410, 35 -1- LSB 5186SV (2) 83 rh/nh 1/ 13

S.F. 2309 provide by ordinary mail electronic transmission on a form 1 approved by the department of human services to the entity 2 designated by the department of human services, a notice of 3 opening administration of the estate and of the appointment 4 of the administrator, which shall include a notice to file 5 claims with the clerk or to provide electronic notification to 6 the administrator that the department has no claim within the 7 later to occur of four months from the second publication of 8 the notice to creditors or six months from the date of mailing 9 of sending this notice, or thereafter be forever barred. 10 2. The notice shall be in substantially the following form: 11 NOTICE OF OPENING ADMINISTRATION 12 OF ESTATE, OF APPOINTMENT OF 13 ADMINISTRATOR, AND NOTICE 14 TO CREDITOR 15 In the District Court of Iowa 16 In and for ................ County. 17 In the Estate of ........................ , Deceased 18 Probate No. ................ 19 To the Department of Human Services Who May Be Interested in 20 the Estate of ........................ , Deceased, who died on 21 or about ................ (date): 22 You are hereby notified that on the ............ day 23 of ................ (month), ............ (year), an intestate 24 estate was opened in the above-named court and 25 that ........................ was appointed 26 administrator of the estate. 27 You are further notified that the birthdate of the deceased 28 is ................ and the deceased’s social security number 29 is ............ - ........ - ................ The name of the 30 spouse is .................... The birthdate of the spouse 31 is ................ and the spouse’s social security number 32 is ............ - ........ - ................ , and that the spouse 33 of the deceased is alive as of the date of this notice, or 34 deceased as of ................ (date). 35 -2- LSB 5186SV (2) 83 rh/nh 2/ 13

S.F. 2309 You are further notified that the deceased was/was 1 not a disabled or a blind child of the medical assistance 2 recipient by the name of .................... , who had a 3 birthdate of ................ and a social security number 4 of ............ - ........ - ................ , and the medical 5 assistance debt of that medical assistance recipient was 6 waived pursuant to section 249A.5, subsection 2, paragraph 7 “a” , subparagraph (1), and is now collectible from this estate 8 pursuant to section 249A.5, subsection 2, paragraph “b” . 9 Notice is hereby given that if the department of human 10 services has a claim against the estate for the deceased person 11 or persons named in this notice, the claim shall be filed with 12 the clerk of the above-named district court, as provided by 13 law, duly authenticated, for allowance , and unless so filed by 14 the later to occur of four months from the second publication 15 of the notice to creditors or six months from the date of the 16 mailing of this notice within six months from the date of 17 sending this notice and , unless otherwise allowed or paid, the 18 claim is thereafter forever barred. If the department does not 19 have a claim, the department shall return the notice to the 20 executor with notification stating the department does not have 21 a claim within six months from the date of sending this notice. 22 Dated this ............ day of ................ 23 (month), ............ (year) 24 ........................................ 25 Administrator of estate 26 ........................................ 27 Address 28 ................................... 29 Attorney for administrator 30 ................................... 31 Address 32 Date of second publication 33 ............ day of ................ (month), 34 ............ (year) 35 -3- LSB 5186SV (2) 83 rh/nh 3/ 13

S.F. 2309 Sec. 4. Section 633.304A, Code 2009, is amended to read as 1 follows: 2 633.304A Notice of probate of will —— medical assistance 3 claims. 4 1. On admission of a will to probate, the executor shall, 5 in accordance with section 633.410, provide by ordinary 6 mail electronic transmission on a form approved by the 7 department of human services to the entity designated by the 8 department of human services, a notice of admission of the will 9 to probate and of the appointment of the executor, which shall 10 include a notice to file claims with the clerk or to provide 11 electronic notification to the executor that the department has 12 no claim within the later to occur of four six months from the 13 second publication of the notice to creditors or six months 14 from the date of mailing of sending this notice, or thereafter 15 be forever barred. 16 2. The notice shall be in substantially the following form: 17 NOTICE OF PROBATE OF WILL, 18 OF APPOINTMENT OF EXECUTOR, 19 AND NOTICE TO CREDITORS 20 In the District Court of Iowa 21 In and for ................ County. 22 In the Estate of ........................ , Deceased 23 Probate No. ................ 24 To the Department of Human Services, Who May Be Interested in 25 the Estate of ........................ , Deceased, who died on 26 or about ................ (date): 27 You are hereby notified that on the ........ day 28 of ................ (month), ........ (year), the last will 29 and testament of ................................ , deceased, 30 bearing date of the ........ day of ................ 31 (month), ........ (year), was admitted to 32 probate in the above-named court and 33 that ................................ was appointed executor of 34 the estate. 35 -4- LSB 5186SV (2) 83 rh/nh 4/ 13

S.F. 2309 You are further notified that the birthdate of the deceased 1 is .................... and the deceased’s social security 2 number is ............ - ........ - ................ The name of 3 the spouse is .................... The birthdate of the spouse 4 is ................ and the spouse’s social security number 5 is ............ - ........ - ................ , and that the spouse 6 of the deceased is alive as of the date of this notice, or 7 deceased as of .................... (date). 8 You are further notified that the deceased was/was 9 not a disabled or a blind child of the medical assistance 10 recipient by the name of .................... , who had a 11 birthdate of ................ and a social security number 12 of ............ - ........ - ................ , and the medical 13 assistance debt of that medical assistance recipient was 14 waived pursuant to section 249A.5, subsection 2, paragraph 15 “a” , subparagraph (1), and is now collectible from this estate 16 pursuant to section 249A.5, subsection 2, paragraph “b” . 17 Notice is hereby given that if the department of human 18 services has a claim against the estate for the deceased person 19 or persons named in this notice, the claim shall be filed with 20 the clerk of the above-named district court, as provided by 21 law, duly authenticated, for allowance , and unless so filed by 22 the later to occur of four months from the second publication 23 of the notice to creditors or six months from the date of 24 mailing of this notice within six months from the date of 25 sending this notice and , unless otherwise allowed or paid, the 26 claim is thereafter forever barred. If the department does not 27 have a claim, the department shall return the notice to the 28 executor with notification that the department does not have a 29 claim within six months from the date of sending this notice. 30 Dated this ........ day of ........................ 31 (month), ........ (year) 32 ........................................ 33 Executor of estate 34 ........................................ 35 -5- LSB 5186SV (2) 83 rh/nh 5/ 13

S.F. 2309 Address 1 ........................................ 2 Attorney for executor 3 ........................................ 4 Address 5 Date of second publication 6 ........ day of ........................ (month), 7 ........ (year) 8 Sec. 5. Section 633.356, subsection 1, Code 2009, is amended 9 to read as follows: 10 1. When the gross value of the decedent’s personal property 11 that would otherwise be distributed by will or intestate 12 succession does not exceed twenty-five thousand dollars and 13 there is no real property or the real property passes to 14 persons exempt from inheritance tax pursuant to section 450.9 15 as joint tenants with right of survivorship, and if forty days 16 have elapsed since the death of the decedent, the successor 17 of the decedent as defined in subsection 2 may, by filing an 18 affidavit prepared pursuant to subsection 3 or 8, and without 19 procuring letters of appointment, do any of the following 20 with respect to one or more particular items of such personal 21 property: 22 a. Receive any particular item of tangible personal property 23 that is tangible personal property of the decedent. 24 b. Have any particular item of property that is evidence 25 of a debt, obligation, interest, right, security, or chose in 26 action belonging to the decedent transferred. 27 c. Collect the proceeds from any life insurance policy or 28 any other item of property for which a beneficiary has not been 29 designated. 30 Sec. 6. Section 633.410, subsection 2, Code 2009, is amended 31 to read as follows: 32 2. Notwithstanding subsection 1, claims for debts created 33 under section 249A.5, subsection 2, relating to the recovery of 34 medical assistance payments shall be barred under this section 35 -6- LSB 5186SV (2) 83 rh/nh 6/ 13

S.F. 2309 unless filed with the clerk within the later to occur of four 1 months after the date of the second publication of the notice 2 to creditors, or six months after service of sending notice by 3 ordinary mail electronic transmission , on the form prescribed 4 in section 633.231 for intestate estates or on the form 5 prescribed in section 633.304A for testate estates, to the 6 entity designated by the department of human services to 7 receive notice. 8 Sec. 7. Section 633A.4502, subsection 2, Code Supplement 9 2009, is amended to read as follows: 10 2. This The exception created in subsection 1 of 11 this section does not apply to any trust created prior to 12 July 1, 2002 , and applies to trusts created on or after 13 July 1, 2002, unless the settlor has specifically waived the 14 requirements of this section in the trust instrument. Waiver 15 of this section shall not bar any beneficiary’s common law 16 right to an accounting, and shall not provide any immunity to a 17 trustee, acting under the terms of the trust, for liability to 18 any beneficiary who discovers facts giving rise to a cause of 19 action against the trustee . 20 Sec. 8. Section 633A.4604, Code 2009, is amended to read as 21 follows: 22 633A.4604 Certification of trust. 23 1. A trustee may present a certification of trust to any 24 person in lieu of providing a copy of the trust instrument to 25 establish the existence or terms of the trust trust’s existence 26 or terms or the trustee’s authority . 27 2. The certification must contain a statement that the trust 28 has not been revoked, modified, or amended in any manner which 29 would cause the representations contained in the certification 30 of trust to be incorrect and must contain a statement that it 31 is being signed by all of the currently acting trustees of the 32 trust and is sworn and subscribed to under penalty of perjury 33 before a notary public. 34 3. A certification of trust need not contain the dispositive 35 -7- LSB 5186SV (2) 83 rh/nh 7/ 13

S.F. 2309 provisions of the trust which set forth the distribution of the 1 trust estate. 2 4. A person may require that the trustee offering the 3 certification of trust provide proof of the trustee’s identity 4 and copies of those excerpts from the original trust instrument 5 and amendments to the original trust instrument which designate 6 the trustee and confer upon the trustee the power to act in the 7 pending transaction. 8 5. A person who acts in reliance upon a certification 9 of trust without after taking reasonable steps to verify 10 the identity of the trustee and without knowledge that the 11 representations contained in the certification are incorrect 12 is not liable to any person for so acting and may assume 13 without inquiry the existence of the facts contained in the 14 certification. The period of time to verify the identity of 15 the trustee shall not exceed ten business days from the date 16 the person received the certification of trust. Knowledge 17 shall not be inferred solely from the fact that a copy of all or 18 part of the trust instrument is held by the person relying upon 19 the trust certification. A transaction, and a lien created 20 by a transaction, entered into by the trustee and a person 21 acting in reliance upon a certification of trust is enforceable 22 against the trust assets. 23 6. A person making a demand for the trust instrument in 24 addition to a certification of trust or excerpts shall be 25 liable for damages, including attorney fees, incurred as a 26 result of the refusal to accept the certification of trust 27 or excerpts in lieu of the trust instrument if the court 28 determines that the person acted unreasonably in requesting the 29 trust instrument. 30 7. a. If a trustee has provided a certification of 31 trust and a person refuses to pay, deliver, or transfer any 32 property owed to or owned by the trust within a reasonable 33 time thereafter, the trustee may bring an action under this 34 subsection and the court may award any or all of the following 35 -8- LSB 5186SV (2) 83 rh/nh 8/ 13

S.F. 2309 to the trustee: 1 (1) Any damages sustained by the trust. 2 (2) The costs of the action. 3 (3) A penalty in an amount of not less than five hundred 4 dollars and not more than ten thousand dollars. 5 (4) Reasonable attorney fees, based on the value of the time 6 reasonably expended by the attorney and not on the amount of 7 the recovery on behalf of the trustee. 8 b. An action shall not be brought under this subsection more 9 than one year after the date of the occurrence of the alleged 10 violation. 11 7. 8. This section does not limit the rights of 12 beneficiaries to obtain copies of the trust instrument or 13 rights of others to obtain copies in a proceeding concerning 14 the trust. 15 Sec. 9. Section 633A.6101, Code 2009, is amended to read as 16 follows: 17 633A.6101 Subject matter jurisdiction. 18 1. The district court sitting in probate has exclusive 19 jurisdiction of proceedings concerning the internal affairs 20 of a trust and of actions and proceedings to determine 21 the existence of a trust, actions and proceedings by or 22 against creditors or debtors of a trust, and other actions 23 and proceedings involving a trust and third persons. Such 24 jurisdiction may be invoked by any interested party at any 25 time. 26 2. Unless a trust is under continuous court supervision 27 pursuant to section 633.10, subsection 4, the trust shall not 28 be subject to the jurisdiction of the probate court and the 29 court shall not issue letters of appointment. 30 Sec. 10. Section 633A.6301, subsection 4, Code 2009, is 31 amended by striking the subsection and inserting in lieu 32 thereof the following: 33 4. Section 633A.6301, subsection 4, Code 2009, applies to 34 written consents executed prior to July 1, 2010. 35 -9- LSB 5186SV (2) 83 rh/nh 9/ 13

S.F. 2309 Sec. 11. Section 633C.2, Code 2009, is amended to read as 1 follows: 2 633C.2 Disposition of medical assistance special needs 3 trusts. 4 Regardless of the terms of a medical assistance special 5 needs trust, any income received or asset added to the trust 6 during a one-month period shall be expended as provided for 7 medical assistance income trusts under section 633C.3, on 8 a monthly basis, during the life of the beneficiary. Any 9 increase in income or principal retained in the trust from 10 a previous month may be expended, during the life of the 11 beneficiary, only for reasonable and necessary expenses of the 12 trust, not to exceed ten fifty dollars per month without court 13 approval, for special needs of the beneficiary attributable 14 to the beneficiary’s disability and approved by the district 15 court, for medical care or services that would otherwise 16 be covered by medical assistance under chapter 249A, or to 17 reimburse the state for medical assistance paid on behalf of 18 the beneficiary. 19 Sec. 12. Section 633C.3, subsection 1, paragraph a, Code 20 2009, is amended to read as follows: 21 a. A reasonable amount may be paid or set aside each 22 month for necessary expenses of the trust, not to exceed 23 ten fifty dollars per month without court approval. 24 Sec. 13. Section 633C.3, subsection 2, paragraph a, Code 25 2009, is amended to read as follows: 26 a. A reasonable amount may be paid or set aside each 27 month for necessary expenses of the trust, not to exceed 28 ten fifty dollars per month without court approval. 29 Sec. 14. Section 633C.3, subsection 3, Code 2009, is amended 30 by adding the following new paragraph: 31 NEW PARAGRAPH . Oa. For a beneficiary who meets the 32 requirements for nursing facility services and who resides in a 33 nursing facility that provides such services, the applicable 34 rate is the actual cost of a private pay resident of the 35 -10- LSB 5186SV (2) 83 rh/nh 10/ 13

S.F. 2309 nursing facility where the beneficiary resides. 1 EXPLANATION 2 This bill relates to trusts and estates including provisions 3 relating to state inheritance tax, uniform transfers to minors, 4 and medical assistance claims. 5 STATE INHERITANCE TAX EXEMPTION. The bill amends Code 6 section 450.4 to specify that a decedent’s interest in 7 an employer-sponsored retirement plan or on a decedent’s 8 individual retirement account that will be subject to federal 9 income tax when paid to the beneficiary is not subject to state 10 inheritance tax. 11 TRANSFERS OF PROPERTY TO MINORS. The bill raises the limit 12 for transfers of property to minors by fiduciaries without 13 court approval under Iowa’s uniform transfers to minors Act 14 from $10,000 to $25,000. 15 MEDICAL ASSISTANCE CLAIMS. The bill requires either the 16 administrator of an intestate estate or the executor of a 17 testate estate to electronically transmit a notice regarding 18 the opening of the estate and of the appointment of the 19 administrator or a notice of admission of the will to probate 20 and of the appointment of the executor to the entity designated 21 by the department of human services for purposes of medical 22 assistance claims under Code section 249A.5. The bill also 23 requires the department of human services to provide an 24 electronic notice relating to whether the department will make 25 a medical assistance claim against the decedent’s estate within 26 the requisite time period. The bill makes a conforming change 27 to Code section 633.410 relating to the recovery of medical 28 assistance payments by the department. 29 DISTRIBUTION OF PROPERTY BY AFFIDAVIT. The bill allows the 30 distribution of property by affidavit when the gross value 31 of the decedent’s personal property that would otherwise be 32 distributed by will or intestate succession does not exceed 33 $25,000. 34 DUTY TO INFORM AND ACCOUNT. The bill provides that the 35 -11- LSB 5186SV (2) 83 rh/nh 11/ 13

S.F. 2309 remedies for a trustee’s alleged failure to inform and account 1 are not available for trusts created prior to July 1, 2002. 2 TRUSTS —— CERTIFICATIONS. The bill provides that, for 3 purposes of transferring property to or from a trust a transfer 4 agent may request a certification of the existence of the trust 5 and the identity of the trustee. The bill further provides 6 that if a trustee has provided a certification of trust and 7 a person refuses to pay, deliver, or transfer any property 8 owed to or owned by the trust within a reasonable time, the 9 trustee may bring an action and the court may award the trustee 10 damages, costs of the action, a civil penalty, and reasonable 11 attorney fees. 12 TRUSTS —— SUBJECT MATTER JURISDICTION. The bill provides 13 that letters of appointment are not required for trusts not 14 under continuous court supervision under Code section 633.10, 15 subsection 4 (jurisdiction of the district court sitting in 16 probate relating to trusts and trustees). 17 TRUSTS —— REPRESENTATION. The bill makes a provision that 18 provides that the consent of a person who may represent and 19 bind another person under the trust code is binding on the 20 person represented unless the person represented objects to the 21 representation before the consent would otherwise have become 22 effective applicable only to written consents executed prior to 23 July 1, 2010. 24 DISPOSITION OF MEDICAL ASSISTANCE SPECIAL NEEDS TRUSTS AND 25 MEDICAL ASSISTANCE TRUSTS. The bill increases the reasonable 26 amount that may be paid or set aside each month for necessary 27 expenses of a medical assistance income trust, without court 28 approval, from up to $10 to up to $50 for a beneficiary whose 29 total monthly income is less than the average statewide charge 30 for nursing facility services to a private-pay resident of a 31 nursing facility. 32 The bill increases the reasonable amount that may be paid 33 or set aside each month for necessary expenses of a medical 34 assistance income trust, without court approval, from up to $10 35 -12- LSB 5186SV (2) 83 rh/nh 12/ 13

S.F. 2309 to up to $50 for a beneficiary whose total monthly income is 1 at or above the average statewide charge for nursing facility 2 services to a private-pay resident. 3 The bill provides that, in lieu of the statewide average 4 charge for nursing facility services, the applicable rate for 5 a beneficiary who meets the medical assistance level of care 6 requirements for nursing facility services and who resides in 7 a nursing facility that provides such services is the actual 8 cost of a private-pay resident at the nursing facility where 9 a beneficiary resides. 10 -13- LSB 5186SV (2) 83 rh/nh 13/ 13