HF 940 (LSB 2737HV (2) 91)

HOUSE FILE 940

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO HF 713)

(As Amended and Passed by the House 2025-03-26)

A BILL FOR

An Act relating to civil law, including providing notice to named beneficiaries in probate law, a process for named beneficiaries to obtain ownership of property held by others in probate law, and authorizing spouses to amend premarital agreements, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
PROBATE LAW —— NAMED BENEFICIARIES
    Section 1.  Section 633.358, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  If the holder of property that has a beneficiary designation has been notified of the death of the owner of the property, the holder of property shall within ten business days provide notice to each charitable organization listed under the beneficiary designation that the charitable organization may have a right to the property and provide the charitable organization with the contact information of the holder of the property.
    Sec. 2.  NEW SECTION.  633.359  Beneficiary notice —— affidavits —— third-party protection.
   1.  For purposes of this section, “beneficiary designation” means the same as defined in section 633.358, subsection 1.
   2.  If the holder of property that has a beneficiary designation has been notified of the death of the owner of the property, the holder of property shall within ten business days provide notice to each person listed under the beneficiary designation that the person may have a right to the property and provide the person with the contact information of the holder of the property.
   3.  A person listed under the beneficiary designation may present an affidavit to the holder of the property or to any person with information about the property for the purpose of obtaining the property or information regarding the property. The affidavit must state all of the following:
   a.  The decedent’s name and last known address.
   b.  A general description of the property to the extent known.
   c.  The person listed under the beneficiary designation’s name, address, and primary contact information.
   d.  A request that the property be paid or transferred to the person listed under the beneficiary designation or that information about the property be given to the person listed under the beneficiary designation.
   e.  No one other than the person listed under the beneficiary designation has a right to the interest in the property listed in the affidavit.
   f.  The affidavit has been signed by the person listed under the beneficiary designation under penalty of perjury before a notary public as provided in chapter 9B.
   g.  The information in the affidavit is true and correct.
   4.  The holder of the property shall not request any additional personal information from the person listed under the beneficiary designation, including but not limited to any of the following:
   a.  Social security number or driver’s license number.
   b.  Contact information.
   c.  Personal financial information.
   5.  If the requirements of this section are satisfied, all of the following apply:
   a.  The decedent’s property shall be paid, delivered, or transferred to or for the benefit of the person listed under the beneficiary designation if the affidavit has requested the transfer of ownership of the property to the person.
   b.  A transfer agent of a security described in the affidavit shall change registered ownership on the books of the corporation from the decedent to or for the benefit of the person listed under the beneficiary designation if the affidavit has requested the transfer of ownership of the property to the person.
   c.  The information requested in the affidavit shall be delivered to the person.
   6.  The holder of the property and any person who in good faith delivers the property or information requested in reliance on information a person listed under the beneficiary designation provides under this section, who has no knowledge that representations contained in the affidavit are incorrect, shall not be liable to any person for so acting and may assume without inquiry the existence of the facts contained in the affidavit. The time to verify a person listed under the beneficiary designation authority shall not exceed thirty days from the date of delivery of the affidavit. Any right or title acquired from the person listed under the beneficiary designation in consideration of the provision of property or information under this section is not invalid in consequence of misapplication by the person listed under the beneficiary designation. A transaction and a lien created by a transaction entered into by the person listed under the beneficiary designation and anyone acting in reliance on the affidavit under this section is enforceable against the property the person has requested.
   7.  If the holder of the property refuses to provide the requested property or information within thirty days after receiving the affidavit, the person listed under the beneficiary designation may bring an action against the holder of the property to recover the property or receive the information or to compel the delivery of the property. An action brought under this section must be brought within one year after the date of the act or failure to act. If the court finds that the holder of the property acted unreasonably in failing to deliver the property or information as requested in the affidavit, the court may award to the person listed under the beneficiary designation any or all of the following:
   a.  Damages sustained by the person.
   b.  Costs of the action.
   c.  A penalty in an amount determined by the court between five hundred dollars and ten thousand dollars.
   d.  Reasonable attorney fees based on the value of the time reasonably expended by the attorney and not by the amount of the recovery on behalf of the person.
DIVISION II
PREMARITAL AGREEMENTS —— AMENDMENTS

    Sec. 3.  Section 596.5, subsection 1, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0g.  Any limitations on the ability of the parties to amend the agreement whether prior to after the solemnization of the marriage except that any amendment must be in writing and signed by both parties.
    Sec. 4.  NEW SECTION.  596.6A  Amendment.
   Notwithstanding section 597.2, a premarital agreement may be amended after marriage only by a written agreement signed by both spouses which satisfies any additional criteria or limitations of an amendment set forth in the premarital agreement.
    Sec. 5.  Section 596.7, unnumbered paragraph 1, Code 2025, is amended to read as follows:
   After marriage, a premarital agreement or amendment may be revoked only as follows:
    Sec. 6.  Section 596.7, subsection 2, unnumbered paragraph 1, Code 2025, is amended to read as follows:
   To revoke a premarital agreement or amendment without the consent of the other spouse, the person seeking revocation must prove one or more of the following:
    Sec. 7.  Section 596.8, Code 2025, is amended to read as follows:
   596.8  Enforcement.
   1.  A premarital agreement or amendment is not enforceable if the person against whom enforcement is sought proves any of the following:
   a.  The person did not execute the agreement or amendment voluntarily.
   b.  The agreement or amendment was unconscionable when it was executed.
   c.  Before the execution of the agreement or amendment the person was not provided a fair and reasonable disclosure of the property or financial obligations of the other spouse; and the person did not have, or reasonably could not have had, an adequate knowledge of the property or financial obligations of the other spouse.
   2.  If a provision of the agreement or amendment or the application of the provision to a party is found by the court to be unenforceable, the provision shall be severed from the remainder of the agreement and shall not affect the provisions, or application, of the agreement which can be given effect without the unenforceable provision.
    Sec. 8.  Section 596.9, Code 2025, is amended to read as follows:
   596.9  Unconscionability.
   In any action under this chapter to revoke or enforce a premarital agreement or amendment, the issue of unconscionability of a premarital agreement or amendment shall be decided by the court as a matter of law.
    Sec. 9.  APPLICABILITY.  This division of this Act applies to proceedings concerning premarital agreement amendments commenced on or after July 1, 2025.