House File 2128 - Introduced HOUSE FILE 2128 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 501) A BILL FOR An Act relating to probate and the administration of small 1 estates and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5191HV (1) 87 asf/rj

H.F. 2128 Section 1. Section 635.1, Code 2018, is amended to read as 1 follows: 2 635.1 When applicable. 3 When the gross value of the probate assets of a decedent 4 subject to the jurisdiction of this state does not exceed one 5 two hundred thousand dollars, and upon a petition as provided 6 in section 635.2 of an authorized petitioner in accordance with 7 sections 633.227 and 633.228 , or section 633.290, subsection 8 1 , paragraph “a” or “b” , the clerk shall issue letters of 9 appointment for administration to the proposed personal 10 representative named in the petition, if qualified to serve 11 pursuant to section 633.63 or upon court order pursuant to 12 section 633.64 . Unless otherwise provided in this chapter , the 13 provisions of chapter 633 apply to an estate probated pursuant 14 to this chapter . 15 Sec. 2. Section 635.7, Code 2018, is amended to read as 16 follows: 17 635.7 Report and inventory —— value and conversion. 18 1. The personal representative is required to file the 19 report and inventory for which provision is made in section 20 633.361 , including all probate and nonprobate assets. This 21 chapter does not exempt the personal representative from 22 complying with the requirements of section 422.27 , 450.22 , 23 450.58 , 633.480 , or 633.481 , and the administration of an 24 estate whether converted to or from a small estate shall be 25 considered one proceeding pursuant to section 633.330 . 26 2. The report and inventory shall show the gross value of 27 probate assets subject to the jurisdiction of this state. 28 3. If the gross value of probate assets subject to the 29 jurisdiction of this state exceeds the amount permitted 30 for a small estate under section 635.1 , the estate shall be 31 administered as provided in chapter 633 . 32 4. If the report and inventory in an estate probated 33 pursuant to chapter 633 shows the gross value of the probate 34 assets subject to the jurisdiction of this state does not 35 -1- LSB 5191HV (1) 87 asf/rj 1/ 6

H.F. 2128 exceed the amount permitted under section 635.1 , the estate 1 shall be administered as a small estate upon the filing of a 2 statement by the personal representative that the estate is a 3 small estate. 4 5. If the personal representative files a statement to 5 convert the estate administration to or from a small estate 6 based on the gross value of probate assets subject to the 7 jurisdiction of this state, the clerk shall make the conversion 8 without an order of the court. 9 5. 6. Other interested parties may apply to convert 10 proceedings from a small estate to a regular estate or from a 11 regular estate to a small estate which the court may grant only 12 upon good cause shown with approval from the court . 13 Sec. 3. Section 635.8, Code 2018, is amended to read as 14 follows: 15 635.8 Closing by sworn statement. 16 1. The personal representative shall file with the court 17 a closing statement and proof of service thereof to all 18 interested parties within a reasonable time from the date of 19 issuance of the letters of appointment. The closing statement 20 shall be verified or affirmed under penalty of perjury 21 stating and shall include all of the following statements and 22 information : 23 a. To the best knowledge of the personal representative, the 24 gross value of the probate assets subject to the jurisdiction 25 of this state does not exceed the amount permitted under 26 section 635.1 . 27 b. The estate has been fully administered and will be 28 distributed to persons entitled thereto if no objection is 29 filed to the closing statement and the accounting and proposed 30 distribution within thirty days after service thereof. 31 c. An accounting and proposed distribution of the estate 32 including an accurate description of all the real estate of 33 which the decedent died seized, stating the nature and extent 34 of the interest in the real estate and its disposition. 35 -2- LSB 5191HV (1) 87 asf/rj 2/ 6

H.F. 2128 d. A copy of the closing statement and a notice of an 1 opportunity to object to and request a hearing has been sent, 2 as provided in section 633.40 , to all interested parties Notice 3 to all interested parties that the parties have thirty days 4 from the date of service of the closing statement in which to 5 request a hearing by filing an objection with the court . 6 e. A statement as to whether or not that all statutory 7 requirements pertaining to taxes have been complied with, 8 including whether federal estate tax due has been paid, whether 9 a lien continues to exist for any federal estate tax, and 10 whether inheritance tax was paid or a tax return was filed in 11 this state. 12 f. A statement that all statutory requirements pertaining to 13 claims have been complied with and a statement describing the 14 resolution of all claims, including charges, and whether a lien 15 continues to exist on any property as security for any claim. 16 f. g. The amount of fees to be paid to the personal 17 representative and the personal representative’s attorney 18 with the appropriate documentation showing compliance with 19 subsection 4. 20 2. If no actions or proceedings involving the estate are 21 pending in the court thirty days after service of the closing 22 statement to all interested parties as provided in section 23 633.40 , the estate shall be distributed according to the 24 closing statement. 25 3. The estate clerk shall close the estate without order of 26 the court and the personal representative shall be discharged 27 upon the earlier of either of the following: 28 a. The filing of an affidavit of mailing or other proof 29 of service of the closing statement and a statement of asset 30 distribution by the personal representative Filing an affidavit 31 of mailing or other proof of service of the closing statement 32 and filing proof of asset distribution, including receipts and 33 other evidence of disbursement . 34 b. Sixty days after the filing of the closing statement and 35 -3- LSB 5191HV (1) 87 asf/rj 3/ 6

H.F. 2128 an affidavit of mailing or other proof of service thereof. 1 4. The fees for the personal representative shall not 2 exceed three percent of the gross value of the probate assets 3 of the estate, unless the personal representative itemizes 4 the personal representative’s services to the estate. The 5 personal representative’s attorney shall be paid reasonable 6 fees as approved by the court or as agreed to in writing by 7 the personal representative and such writing shall be executed 8 by the time of filing the probate inventory. All interested 9 parties shall have the opportunity to object and request a 10 hearing as to all fees reported in the closing statement. 11 5. If a closing statement is not filed within twelve 12 months of the date of issuance of a letter of appointment, an 13 interlocutory report shall be filed within such time period. 14 Such report shall be provided to all interested parties at 15 least once every six months until the closing statement has 16 been filed unless excused by the court for good cause shown. 17 The provisions of section 633.473 requiring final settlement 18 within three years shall apply to an estate probated pursuant 19 to this chapter . A closing statement filed under this section 20 has the same effect as final settlement of the estate under 21 chapter 633 . 22 Sec. 4. APPLICABILITY. The following applies July 1, 23 2018, to estates opened under chapter 635 or converted from 24 administration under chapter 633 on or after July 1, 2018: 25 The section of this Act amending section 635.1. 26 Sec. 5. APPLICABILITY. The following applies July 1, 2018, 27 to estates being probated under chapter 635 on or after July 28 1, 2018: 29 The sections of this Act amending sections 635.7 and 635.8. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to probate and the administration of small 34 estates. 35 -4- LSB 5191HV (1) 87 asf/rj 4/ 6

H.F. 2128 The bill amends Code section 635.1 regarding the 1 applicability of Code chapter 635 to estates opened or 2 converted from administration under Code chapter 633 to include 3 estates as large as $200,000, whereas currently the limit is 4 $100,000. This portion of the bill applies July 1, 2018, 5 to estates opened under Code chapter 635 or converted from 6 administration under Code chapter 633 on or after July 1, 2018. 7 The bill amends Code section 635.7 (report and inventory 8 —— value and conversion). The bill provides that if the 9 personal representative files a statement to convert the estate 10 administration to or from a small estate based on the gross 11 value of probate assets subject to the jurisdiction of this 12 state, the clerk shall make the conversion without an order of 13 the court. This portion of the bill applies July 1, 2018, to 14 estates being probated under Code chapter 635 on or after July 15 1, 2018. 16 The bill amends Code section 635.8 (closing by sworn 17 statement). The bill requires the personal representative to 18 file with the court a closing statement and proof of service 19 thereof to all interested parties. The bill requires the 20 following statements and informations to be included in the 21 closing statement: notice to all interested parties that the 22 parties have 30 days from the date of service of the closing 23 statement in which to request a hearing by filing an objection 24 with the court (replacing a reference to the notice procedures 25 in Code section 633.40); a statement that all statutory 26 requirements pertaining to claims have been complied with and a 27 statement describing the resolution of all claims, including 28 charges, and whether a lien continues to exist on any property 29 as security for any claim. The bill amends Code section 30 635.8(2) by requiring service of the closing statement “to all 31 interested parties as provided in Code section 633.40”, prior 32 to distribution of the estate. The bill amends Code section 33 635.8(3) to require the clerk to close the estate without order 34 of the court. Finally, as one of the two options to close the 35 -5- LSB 5191HV (1) 87 asf/rj 5/ 6

H.F. 2128 estate, Code section 635.8(3)(a) is amended to specify that 1 receipts and other evidence of disbursement are required to be 2 included as proof of asset distribution. This portion of the 3 bill applies July 1, 2018, to estates being probated under Code 4 chapter 635 on or after July 1, 2018. 5 -6- LSB 5191HV (1) 87 asf/rj 6/ 6