Senate Study Bill 1012 - IntroducedA Bill ForAn Act 1relating to trusts, including requirements for
2certifications of trust and the general order of abatement.
1   Section 1.  Section 633A.4604, subsection 2, Code 2021, is
2amended by adding the following new paragraphs:
3   NEW PARAGRAPH.  0a.  State the names of all the currently
4acting trustees.
5   NEW PARAGRAPH.  00a.  If there is more than one currently
6acting trustee, state whether the trustees may act individually
7or must act by majority decision or must act by unanimous
9   Sec. 2.  Section 633A.4604, subsection 2, paragraph c, Code
102021, is amended to read as follows:
   11c.  Be dated and certified under penalty of perjury
12and pursuant to the laws of the state of Iowa that the
13certification of trust is true and correct or be
subscribed and
14sworn to under penalty of perjury before a notary public as
15provided in chapter 9B.
16   Sec. 3.  Section 633A.4703, subsection 4, Code 2021, is
17amended to read as follows:
   184.  Notwithstanding subsections 1, 2, or 3, a disposition in
19favor of the settlor’s surviving spouse who does not take an
20elective share shall not be abated where such abatement would
21have the effect of increasing the amount of federal estate or
22federal gift taxes payable by a person or an entity
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
   26This bill relates to trusts, including requirements for a
27certification of trust and abatement of a disposition in favor
28of a surviving spouse who did not take an elective share.
   29Current law prescribes certain requirements to be included
30in certifications of trusts. Under the bill, certifications
31of trust must also state the names of all currently acting
32trustees and, if there is more than one trustee, whether the
33trustees may act individually, or must act as a majority or
34unanimously. Under current law, a certification of trust must
35be subscribed and sworn to under penalty of perjury before
-1-1a notary public. The bill provides that, in lieu of this
2procedure, a certification of trust may be dated and certified
3under penalty of perjury.
   4Under current law, abatement occurs when the equitable
5assets of a deceased person are not sufficient to satisfy
6debts, creditors, or taxes. Code section 633A.4703 provides
7a default order of abatement if the governing instrument is
8silent. Currently, shares allocated to residuary beneficiaries
9are abated first on a pro rata basis, followed by shares
10defined by dollar amount on a pro rata basis, and lastly the
11shares described as specific items of property are abated
12by the trustee among the beneficiaries as equitably as
13circumstances reasonably allow. A disposition in favor of
14a surviving spouse who has not taken an elective share is
15not abated when the abatement would result in increasing the
16amount of federal taxes payable by a person or entity. The
17bill provides that a disposition in favor of the surviving
18spouse who did not take an elective share is abated last,
19notwithstanding the current order of abatement which remains
20the same, and strikes the prohibition on such abatements which
21have the effect of increasing the amount of federal taxes
22payable by a person or entity.