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Senate File 240 - EnrolledAn Actrelating to the creation, administration, and
termination of custodial trusts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
IOWA UNIFORM CUSTODIAL TRUST ACT
Section 1. NEW SECTION. 633F.1 Definitions.
For purposes of this chapter:
1. “Adult” means an individual who is at least eighteen
years of age.
2. “Beneficiary” means an individual for whom property has
been transferred to or held under a declaration of trust by a
custodial trustee for the individual’s use and benefit under
this chapter.
3. “Consent” means affirmation given by a person who is
not incapacitated; or if a person is incapacitated and there
is no conflict of interest between the representer and the
incapacitated person with respect to the fiduciary manner,
the following may consent on behalf of the incapacitated
individual:
a. A conservator may represent and bind the person whose
estate the conservator controls.
b. A trustee may represent and bind the beneficiary of a
trust.
c. A personal representative may represent and bind the
persons interested in the decedent’s estate.
d. If no conservator has been appointed, a parent may
represent and bind a minor child.
4. “Conservator” means a person appointed or qualified by a
court to manage the estate of an individual or a person legally
authorized to perform substantially the same functions.
5. “Court” means the probate court of this state.
6. “Custodial trust property” means an interest in property
transferred to or held under a declaration of trust by a
custodial trustee under this chapter and the income from and
proceeds of that interest.
7. “Custodial trustee” means a person designated as trustee
of a custodial trust under this chapter or a substitute or
successor to the person designated.
-1- 8. “Guardian” means a person appointed or qualified by
a court as a guardian of an individual, including a limited
guardian, but not a person who is only a court visitor.
9. “Incapacitated” means the inability of an individual to
manage property or business affairs because the individual is
any of the following:
a. An individual whose decision-making is so impaired that
the individual is unable to make, communicate, or carry out
important decisions concerning the individual’s financial
affairs.
b. Detailed or incarcerated in a penal system.
c. Outside the United States and unable to return.
d. A minor.
10. “Legal representative” means a living person’s
agent acting under a durable financial power of attorney or
conservator, a living or deceased person’s trustee acting
under a revocable trust created by such person, or a deceased
person’s personal representative.
11. “Member of the beneficiary’s family” means the following
persons who are competent adults at the time of acting
hereunder, with such action to be taken in the following order
of priority:
a. The surviving spouse, if not legally separated from the
beneficiary, whose whereabouts are reasonably ascertainable.
b. The surviving child of the beneficiary, or, if there
is more than one, a majority of the surviving children whose
whereabouts are reasonably ascertainable.
c. The surviving parents of the beneficiary whose
whereabouts are reasonably ascertainable.
d. A surviving grandchild of the beneficiary, or if there is
more than one, a majority of the surviving grandchildren whose
whereabouts are reasonably ascertainable.
e. A surviving sibling of the beneficiary, or if there
is more than one, a majority of the surviving siblings whose
whereabouts are reasonably ascertainable.
-2- f. A surviving grandparent of the beneficiary, or if there
is more than one, a majority of the surviving grandparents
whose whereabouts are reasonably ascertainable.
g. A person in the next degree of kinship to the beneficiary
in the order named by law who would inherit the estate of
the beneficiary under the rules of inheritance for intestate
succession, or if there is more than one, a majority of
such surviving persons whose whereabouts are reasonably
ascertainable.
12. “Person” means an individual, corporation, business
trust, estate, trust, partnership, joint venture, association,
or any other legal or commercial entity.
13. “Personal representative” means an executor,
administrator, or special administrator of a decedent’s estate,
a person legally authorized to perform substantially the same
functions, or a successor to any of them as defined in section
633.3.
14. “State” means a state, territory, or possession of the
United States, the District of Columbia, or the Commonwealth
of Puerto Rico.
15. “Transferor” means a person who creates a custodial
trust by transfer or declaration.
16. “Trust company” means a financial institution,
corporation, or other legal entity, authorized to exercise
general trust powers.
Sec. 2. NEW SECTION. 633F.2 Custodial trust — general.
1. A person may create a custodial trust of property by a
written transfer of the property to another person, evidenced
by registration or by other instrument of transfer, executed in
any lawful manner, naming as beneficiary, an individual who may
be the transferor, in which the transferee is designated, in
substance, as custodial trustee under this chapter.
2. A person may create a custodial trust of property by a
written declaration, evidenced by registration of the property
or by other instrument of declaration executed in any lawful
-3-manner, describing the property and naming as beneficiary an
individual other than the declarant, in which the declarant as
titleholder is designated, in substance, as custodial trustee
under this chapter. A registration or other declaration of
trust for the sole benefit of the declarant is not a custodial
trust under this chapter.
3. Title to custodial trust property is in the custodial
trustee and the beneficial interest is in the beneficiary.
4. Except as provided in subsection 5, a transferor shall
not terminate a custodial trust.
5. The beneficiary, if not incapacitated, or the legal
representative of an incapacitated beneficiary, may terminate
a custodial trust by delivering to the custodial trustee a
writing signed by the beneficiary or legal representative
declaring the termination. If not previously terminated, the
custodial trust terminates on the death of the beneficiary.
6. Any person may augment existing custodial trust property
by the addition of other property pursuant to this chapter,
only upon receipt and acceptance by the custodial trustee.
7. The transferor may designate, or authorize the
designation of, a successor custodial trustee in the trust
instrument.
8. This chapter does not displace or restrict other means
of creating trusts. A trust whose terms do not conform to this
chapter may be enforceable according to its terms under other
law.
Sec. 3. NEW SECTION. 633F.3 Custodial trustee for future
payment or transfer.
1. A person having the right to designate the recipient of
property payable or transferable upon a future event may create
a custodial trust upon the occurrence of the future event by
designating in writing the recipient, followed in substance
by: “as custodial trustee for __________________ (name of
beneficiary) under the Iowa Uniform Custodial Trust Act”.
2. Persons may be designated as substitute or successor
-4-custodial trustees to whom the property must be paid or
transferred in the order named if the first designated
custodial trustee is unable or unwilling to serve.
3. A designation under this section may be made in a will,
a trust, a multiple-party account, an insurance policy, an
instrument exercising a power of appointment, or a writing
designating a beneficiary of contractual rights. Otherwise,
to be effective, the designation must be registered with or
delivered to the fiduciary, payor, issuer, or obligor of the
future right.
Sec. 4. NEW SECTION. 633F.4 Form and effect of receipt and
acceptance by custodial trustee — jurisdiction.
1. Obligations of a custodial trustee, including the
obligation to follow directions of the beneficiary, arise under
this chapter upon the custodial trustee’s acceptance, express
or implied, of the custodial trust property.
2. The custodial trustee’s acceptance may be evidenced by a
writing stating in substance:
CUSTODIAL TRUSTEE’S RECEIPT AND ACCEPTANCE
I, _______ (name of custodial trustee) acknowledge receipt
of the custodial trust property described below or in the
attached instrument and accept the custodial trust as custodial
trustee for __________________ (name of beneficiary) under the
Iowa Uniform Custodial Trust Act. I undertake to administer
and distribute the custodial trust property pursuant to the
Iowa Uniform Custodial Trust Act. My obligations as custodial
trustee are subject to the directions of the beneficiary
unless the beneficiary is designated as, is, or becomes
incapacitated. The custodial trust property consists of
_____________________________.
Dated: _____________________________
(Signature of Custodial Trustee)
3. Upon accepting custodial trust property, a person
designated as custodial trustee under this chapter is subject
to personal jurisdiction of the court with respect to any
-5-matter relating to the custodial trust.
Sec. 5. NEW SECTION. 633F.5 Transfer to custodial trustee
by fiduciary or obligor — facility of payment.
1. Unless otherwise directed by an instrument designating
a custodial trustee pursuant to section 633F.3, a person,
including a fiduciary other than a custodial trustee, who holds
property of or owes a debt to an incapacitated individual may
make a transfer to a beneficiary’s legal representative and
if none, to a member of the beneficiary’s family, or a trust
company, as custodial trustee for the use and benefit of the
incapacitated individual. If the value of the property or
the debt exceeds fifty thousand dollars, the transfer is not
effective unless authorized by the court.
2. A written acknowledgment of delivery, signed by a
custodial trustee, is a sufficient receipt and discharge for
property transferred to the custodial trustee pursuant to this
section.
Sec. 6. NEW SECTION. 633F.6 Single beneficiaries —
separate trust accounts.
1. Beneficial interests in a custodial trust shall not be
created for multiple beneficiaries.
2. All custodial trust property held under this chapter by
the same custodial trustee for the use and benefit of a single
beneficiary may be administered as a single custodial trust.
Sec. 7. NEW SECTION. 633F.7 General duties of custodial
trustee.
1. If appropriate, a custodial trustee shall register
or record the instrument vesting title to custodial trust
property.
2. If the beneficiary is not incapacitated, a custodial
trustee shall follow the directions of the beneficiary in the
management, control, investment, or retention of the custodial
trust property. In the absence of effective contrary direction
by the beneficiary while not incapacitated, the custodial
trustee shall observe the prudent investment standards set
-6-forth in section 633.123. However, a custodial trustee, in the
custodial trustee’s discretion, may retain any custodial trust
property received from the transferor. If a custodial trustee
has a special skill or expertise or is named custodial trustee
on the basis of representation of a special skill or expertise,
the custodial trustee shall use that skill or expertise.
3. Subject to subsection 2, a custodial trustee shall take
control of and collect, hold, manage, invest, and reinvest
custodial trust property.
4. A custodial trustee at all times shall keep custodial
trust property of which the custodial trustee has control,
separate from all other property in a manner sufficient
to identify it clearly as custodial trust property of the
beneficiary. Custodial trust property, the title to which is
subject to recordation, is so identified if an appropriate
instrument so identifying the property is recorded, and
custodial trust property subject to registration is so
identified if it is registered, or held in an account in the
name of the custodial trustee, designated in substance: “as
custodial trustee for __________________ (name of beneficiary)
under the Iowa Uniform Custodial Trust Act”.
5. A custodial trustee shall keep records of all
transactions with respect to custodial trust property,
including information necessary for the preparation of tax
returns, and shall make the records and information available
at reasonable times to the beneficiary or legal representative
of the beneficiary.
6. The exercise of a durable power of attorney for an
incapacitated beneficiary is not effective to terminate or
direct the administration or distribution of a custodial trust.
Sec. 8. NEW SECTION. 633F.8 General powers of custodial
trustee.
1. A custodial trustee, acting in a fiduciary capacity, has
all the rights and powers over custodial trust property which
an unmarried adult owner has over individually owned property,
-7-but a custodial trustee may exercise those rights and powers
in a fiduciary capacity only.
2. This section does not relieve a custodial trustee from
liability for a violation of section 633F.7.
Sec. 9. NEW SECTION. 633F.9 Use of custodial trust
property.
1. A custodial trustee shall pay to the beneficiary or
expend for the beneficiary’s use and benefit so much or all
of the custodial trust property as the beneficiary while not
incapacitated may direct from time to time.
2. If the beneficiary is incapacitated, the custodial
trustee shall expend so much or all of the custodial trust
property as the custodial trustee considers advisable for the
use and benefit of the beneficiary and individuals who are
legally entitled to support by the beneficiary. Expenditures
may be made in the manner, when, and to the extent that the
custodial trustee determines suitable and proper, without court
order and without regard to other support, income, or property
of the beneficiary.
3. To facilitate distributions to the beneficiary, a
custodial trustee may establish checking, savings, or other
similar accounts of reasonable amounts under which either
the custodial trustee or the beneficiary, if authorized, may
withdraw funds from, or draw checks against, the accounts in
amounts authorized by the custodian. Funds withdrawn from,
or checks written against, the account by the beneficiary are
distributions of custodial trust property by the custodial
trustee to the beneficiary.
Sec. 10. NEW SECTION. 633F.10 Determination of incapacity
— effect.
1. The custodial trustee shall administer the custodial
trust as for an incapacitated beneficiary in any of the
following circumstances:
a. The custodial trust was created under section 633F.5.
b. The transferor has so directed in the instrument creating
-8-the custodial trust.
c. The custodial trustee has determined that the beneficiary
is incapacitated.
2. A custodial trustee may determine that the beneficiary is
incapacitated in reliance upon any of the following:
a. Previous direction or authority given by the beneficiary
while not incapacitated, including direction or authority
pursuant to a durable power of attorney.
b. Written documentation from the beneficiary’s physician.
c. Other persuasive evidence.
3. If a custodial trustee for an incapacitated beneficiary
reasonably concludes that the beneficiary’s incapacity has
ceased, or that circumstances concerning the beneficiary’s
ability to manage property and business affairs have
changed since the creation of a custodial trust directing
administration as for an incapacitated beneficiary, the
custodial trustee may administer the trust as for a beneficiary
who is not incapacitated.
4. On petition of the beneficiary, the custodial trustee, or
other person interested in the custodial trust property or the
welfare of the beneficiary, the court shall determine whether
the beneficiary is incapacitated.
5. Absent determination of incapacity of the beneficiary
under subsection 2 or 4, a custodial trustee who has reason to
believe that the beneficiary is incapacitated shall administer
the custodial trust in accordance with the provisions of this
chapter applicable to an incapacitated beneficiary.
6. Incapacity of a beneficiary does not terminate the
custodial trust, any designation of a successor custodial
trustee, rights or powers of the custodial trustee, or any
immunities of third persons acting on instructions of the
custodial trustee.
Sec. 11. NEW SECTION. 633F.11 Exemption of third person
from liability.
1. A third person in good faith and without a court order
-9-may act on instructions of, or otherwise deal with, a person
purporting to make a transfer as, or purporting to act in the
capacity of, a custodial trustee.
2. A third person who receives instructions from the
purported custodial trustee may require such custodial trustee
to provide proof of their identity and a certification of trust
or copies of those excerpts from the original trust instrument
and amendments to the original trust instrument which designate
the currently acting custodial trustee and confer upon the
custodial trustee the power to act in the pending transaction.
3. If a certification of trust is provided, it must do all
of the following:
a. State the names of all the currently acting trustees.
b. If there is more than one currently acting trustee,
state whether the trustees may act individually or must act by
majority decision or must act by unanimous decision.
c. State that the trust has not been revoked, modified, or
amended in any manner that would cause the representations in
the certification of trust to be incorrect.
d. Be signed by a currently acting trustee or the attorney
of a currently acting trustee.
e. Be dated and certified under penalty of perjury and
pursuant to the laws of the state of Iowa that it is true and
correct, or subscribed and sworn to under penalty of perjury
before a notary public as provided in chapter 9B.
f. A third person who acts in reliance upon the information
provided by the custodial trustee, after taking reasonable
steps to verify the identity of the custodial trustee and
without knowledge that the representations contained in the
certification are incorrect, is not liable to any person
for so acting and may assume without inquiry the existence
of the facts contained in the certification. The period of
time to verify the identity of the trustee shall not exceed
ten business days from the date the third person received
the requested information. Knowledge shall not be inferred
-10-solely from the fact that a copy of all or part of the trust
instrument is held by the third person relying upon the
trust certification. A transaction, and a lien created by a
transaction, entered into by the custodial trustee and a person
acting in reliance upon a certification of trust is enforceable
against the trust assets.
4. A third person who makes a demand for information from
the custodial trustee beyond that set forth in subsection
2 shall be liable for damages, including attorney fees,
incurred as a result of the refusal to accept the information
provided, if the court determines that the third person acted
unreasonably in requesting such additional information.
5. If a custodial trustee has provided the information set
forth in subsection 2, and the third person refuses to follow
the instructions provided by the custodial trustee within the
time period set forth in subsection 4, the custodial trustee
may bring an action under this subsection and the court may
award any or all of the following to the custodial trustee:
a. Any damages sustained by the trust.
b. The costs of the action.
c. A penalty in an amount of not less than five hundred
dollars and not more than ten thousand dollars.
d. Reasonable attorney fees, based on the value of the time
reasonably expended by the attorney and not on the amount of
the recovery on behalf of the custodial trustee.
6. An action shall not be brought under this subsection more
than one year after the date of the occurrence of the alleged
violation.
Sec. 12. NEW SECTION. 633F.12 Liability to third person.
1. A claim based on a contract entered into by a custodial
trustee acting in a fiduciary capacity, an obligation arising
from the ownership or control of custodial trust property, or
a tort committed in the course of administering the custodial
trust, may be asserted by a third person against the custodial
trust property by proceeding against the custodial trustee in a
-11-fiduciary capacity, whether or not the custodial trustee or the
beneficiary is personally liable.
2. A custodial trustee is not personally liable to a third
person for any of the following:
a. On a contract properly entered into in a fiduciary
capacity unless the custodial trustee fails to reveal that
capacity or to identify the custodial trust in the contract.
b. For an obligation arising from control of custodial
trust property or for a tort committed in the course of the
administration of the custodial trust unless the custodial
trustee is personally at fault.
3. A beneficiary is not personally liable to a third
person for an obligation arising from beneficial ownership of
custodial trust property or for a tort committed in the course
of administration of the custodial trust unless the beneficiary
is personally in possession of the custodial trust property
giving rise to the liability or is personally at fault.
4. Subsections 2 and 3 do not preclude actions or
proceedings to establish liability of the custodial trustee or
beneficiary to the extent the person sued is protected as the
insured by liability insurance.
Sec. 13. NEW SECTION. 633F.13 Declination, resignation,
incapacity, death, or removal of custodial trustee — designation
of successor custodial trustee.
1. Before accepting the custodial trust property, a person
designated as custodial trustee may decline to serve by
notifying the person who made the designation, the transferor,
or the transferor’s legal representative. If an event giving
rise to a transfer has not occurred, the substitute custodial
trustee designated under section 633F.3 becomes the custodial
trustee, or, if a substitute custodial trustee has not been
designated, the person who made the designation may designate
a substitute custodial trustee pursuant to section 633F.3.
In other cases, the transferor or the transferor’s legal
representative may designate a substitute custodial trustee.
-12- 2. A custodial trustee who has accepted the custodial trust
property may resign by doing all of the following:
a. Delivering written notice to a successor custodial
trustee, if any, the beneficiary and, if the beneficiary is
incapacitated, to the beneficiary’s legal representative, if
any.
b. Transferring or registering, or recording an appropriate
instrument relating to, the custodial trust property, in the
name of, and delivering the records to, the successor custodial
trustee identified under subsection 3.
3. If a custodial trustee or successor custodial trustee
is ineligible, resigns, dies, or becomes incapacitated, the
successor designated under section 633F.2, subsection 7, or
section 633F.3 becomes custodial trustee. If there is no
effective provision for a successor, the beneficiary if not
incapacitated, or the legal representative of an incapacitated
beneficiary, may designate a successor custodial trustee. If
the beneficiary is not incapacitated, but fails to act within
ninety days after the ineligibility, resignation, death, or
incapacity of the custodial trustee, or if the beneficiary
is incapacitated and the beneficiary’s legal representative
fails to act within ninety days after the ineligibility,
resignation, death, or incapacity of the custodial trustee,
then the beneficiary’s legal representative becomes successor
custodial trustee. If the beneficiary does not have a legal
representative or the legal representative fails to act, the
resigning custodial trustee may designate a successor custodial
trustee.
4. If a successor custodial trustee is not designated
pursuant to subsection 3, the transferor, the legal
representative of the transferor or of the custodial trustee,
a beneficiary’s legal representative and if none, a member of
the beneficiary’s family, a person interested in the custodial
trust property may petition the court to designate a successor
custodial trustee.
-13- 5. A custodial trustee who declines to serve or resigns,
or the legal representative of a deceased or incapacitated
custodial trustee, as soon as practicable, shall put the
custodial trust property and records in the possession and
control of the successor custodial trustee. The successor
custodial trustee may enforce the obligation to deliver
custodial trust property and records and becomes responsible
for each item as received.
6. A substitute custodial trustee designated under section
633F.3, the beneficiary, the beneficiary’s legal representative
and if none, a member of the beneficiary’s family, a person
interested in the custodial trust property, may petition the
court to remove the custodial trustee for cause and designate
a successor custodial trustee, to require the custodial
trustee to furnish a bond or other security for the faithful
performance of fiduciary duties, or for other appropriate
relief.
Sec. 14. NEW SECTION. 633F.14 Expenses, compensation, and
bond of custodial trustee.
Except as otherwise provided in the instrument creating the
custodial trust, in an agreement with the beneficiary, or by
court order, all of the following are true:
1. A custodial trustee is entitled to reimbursement from
custodial trust property for reasonable expenses incurred in
the performance of fiduciary services.
2. A custodial trustee has a noncumulative election, to be
made no later than six months after the end of each calendar
year, to charge a reasonable compensation for fiduciary
services performed during that year.
3. A custodial trustee need not furnish a bond or other
security for the faithful performance of fiduciary duties.
Sec. 15. NEW SECTION. 633F.15 Reporting and accounting
by custodial trustee — determination of liability of custodial
trustee.
1. Upon the acceptance of custodial trust property, the
-14-custodial trustee shall provide a written statement describing
the custodial trust property and shall thereafter provide a
written statement of the administration of the custodial trust
property as follows:
a. Once each year.
b. Upon request at reasonable times, but not more than
quarterly during any calendar year, by the beneficiary or the
beneficiary’s legal representative.
c. Upon resignation or removal of the custodial trustee.
d. Upon termination of the custodial trust.
2. The statements must be provided to the beneficiary
or to the beneficiary’s legal representative, if any. Upon
termination of the beneficiary’s interest, the custodial
trustee shall furnish a current statement to the person to whom
the custodial trust property is to be delivered.
3. A substitute or successor custodial trustee designated
under section 633F.3, a beneficiary, the beneficiary’s legal
representative, a member of the beneficiary’s family, or a
person interested in the custodial trust property may petition
the court for an accounting by the custodial trustee or the
custodial trustee’s legal representative.
4. A successor custodial trustee may petition the court for
an accounting by a predecessor custodial trustee.
5. In an action or proceeding under this chapter or in any
other proceeding, the court may require or permit the custodial
trustee or the custodial trustee’s legal representative to
account. The custodial trustee or the custodial trustee’s
legal representative may petition the court for approval of
final accounts.
6. If a custodial trustee is removed, the court shall
require an accounting and order delivery of the custodial trust
property and records to the successor custodial trustee and
the execution of all instruments required for transfer of the
custodial trust property.
7. On petition of the custodial trustee or any person who
-15-could petition for an accounting, the court, after notice to
interested persons, may issue instructions to the custodial
trustee or review the propriety of the acts of a custodial
trustee or the reasonableness of compensation determined by the
custodial trustee for the services of the custodial trustee or
others.
Sec. 16. NEW SECTION. 633F.16 Limitations of action against
custodial trustee.
1. Except as provided in subsection 3, unless previously
barred by adjudication, consent, or limitation, a claim for
relief against a custodial trustee for accounting or breach of
duty is barred as to a beneficiary, a person to whom custodial
trust property is to be paid or delivered, or the legal
representative of an incapacitated or deceased beneficiary or
payee who either:
a. Has received an accounting or other statement adequately
disclosing the matter unless an action or proceeding to assert
the claim is commenced within one year after receipt of such
accounting or statement.
b. Has not received an accounting or other statement
adequately disclosing the matter unless an action or proceeding
to assert the claim is commenced within three years after the
termination of the custodial trust.
2. For the purpose of subsection 1, a beneficiary or a
person to whom custodial trust property is to be paid or
delivered, is deemed to have received an accounting or other
statement, in the following instances:
a. In the case of an adult who is reasonably capable of
understanding the accounting or other statement if it is
personally received by such person.
b. In the case of an adult who is not reasonably capable
of understanding the accounting or other statement, if it is
received by such adult person’s legal representative, and if
none, then if received by a guardian ad litem, court visitor,
or other person appointed for this purpose.
-16- c. In the case of a minor, if it is received by a person who
has authority to consent on the minor’s behalf, and if none,
then if received by a guardian ad litem, court visitor, or
other person appointed for this purpose.
3. Except as provided in subsection 4, a claim for relief to
recover from a custodial trustee for fraud, misrepresentation,
or concealment related to the final settlement of the custodial
trust or concealment of the existence of the custodial trust,
is barred unless an action or proceeding to assert the claim
is commenced within five years after the termination of the
custodial trust.
4. Unless an accounting or other statement adequately
disclosing the matter was provided as set forth above, a claim
for relief is not barred by this section if the claimant is or
was any of the following:
a. A minor, until the earlier of one year after the claimant
becomes an adult or dies; an incapacitated adult, until the
earliest of one year after the following:
(1) The appointment of a legal representative.
(2) The removal of the incapacity.
(3) The death of the claimant.
b. An adult, now deceased, who was not incapacitated, until
one year after the claimant’s death.
Sec. 17. NEW SECTION. 633F.17 Distribution on termination.
1. Upon termination of a custodial trust, the custodial
trustee shall transfer the unexpended custodial trust property:
a. To the beneficiary, if not incapacitated or deceased.
b. To the beneficiary’s legal representative or other
recipient designated by the court for an incapacitated
beneficiary.
c. Upon the beneficiary’s death, in the following order:
(1) As last directed in a writing signed by the deceased
beneficiary while not incapacitated and received by the
custodial trustee during the life of the deceased.
(2) As designated in the instrument creating the custodial
-17-trust.
(3) To the estate of the deceased beneficiary.
2. The direction to the custodial trustee by a beneficiary
who is not incapacitated, for distribution on termination
of the custodial trust may be in any written form clearly
identifying the distributee and may be substantially similar
to the following:
I, ________________ (name of beneficiary) hereby direct
_____________________ (name of custodial trustee) as custodial
trustee, to transfer and pay the unexpended balance of
the custodial trust property of which I am beneficiary to
__________________ as distributee on the termination of the
trust at my death. In the event of the prior death of _________
above named as distributee, I designate ________________ as
distributee of the custodial trust property.
Signed ______________________ (signature of beneficiary).
Date ____________________
Receipt Acknowledged: ____________________ (signature of
custodial trustee)
Date ___________________
3. If, when the custodial trust would otherwise terminate,
the distributee is incapacitated, the custodial trust continues
for the use and benefit of the distributee as beneficiary until
the incapacity is removed or the custodial trust is otherwise
terminated.
4. Death of a beneficiary does not terminate the power of
the custodial trustee to discharge obligations of the custodial
trustee or beneficiary incurred before the termination of the
custodial trust.
Sec. 18. NEW SECTION. 633F.18 Methods and forms for
creating custodial trusts.
1. If a transaction, including a declaration with respect
to or a transfer of specific property, otherwise satisfies
applicable law, the criteria of section 633F.2 are satisfied
by any of the following:
-18- a. The execution and either delivery to the custodial
trustee or recording of an instrument in substantially the
following form:
TRANSFER UNDER THE IOWA UNIFORM CUSTODIAL TRUST ACT
I, __________ (name of transferor or name and representative
capacity if a fiduciary), transfer to __________ (name of
trustee other than transferor), as custodial trustee for
__________ (name of beneficiary) as beneficiary and __________
as distributee on termination of the trust in absence of
direction by the beneficiary under the Iowa Uniform Custodial
Trust Act, the following:
__________ (Insert a description of the custodial trust
property legally sufficient to identify and transfer each item
of property).
If __________ (name of trustee other than transferor)
declines to serve or ceases to serve as custodial trustee for
any reason, then I designate __________ (name of substitute
or successor custodial trustee) as substitute or successor
custodial trustee.
Dated: _______________
Signature: _____________________
b. The execution and the recording or giving notice of its
execution to the beneficiary of an instrument in substantially
the following form:
DECLARATION OF TRUST UNDER IOWA UNIFORM CUSTODIAL TRUST ACT
I, __________ (name of owner of property), declare that
henceforth I hold as custodial trustee for __________ (name of
beneficiary other than transferor) as beneficiary and ________
as distributee on termination of the trust in absence of
direction by the beneficiary under the Iowa Uniform Custodial
Trust Act, the following: __________ (Insert a description of
the custodial trust property legally sufficient to identify
and transfer each item of property). If I cease to serve as
custodial trustee for any reason, then I designate __________
(name of substitute or successor custodial trustee) as
-19-successor custodial trustee.
Dated: ____________________
Signature: ___________________________
2. Customary methods of transferring or evidencing
ownership of property may be used to create a custodial trust,
including any of the following:
a. Registration of a security in the name of a trust
company, an adult other than the transferor, or the transferor
if the beneficiary is other than the transferor, designated in
substance “as custodial trustee for ________________ (name of
beneficiary) under the Iowa Uniform Custodial Trust Act”.
b. Delivery of a certificated security, or a document
necessary for the transfer of an uncertificated security,
together with any necessary endorsement, to an adult other than
the transferor or to a trust company as custodial trustee,
accompanied by an instrument in substantially the form
prescribed in subsection 1, paragraph “a”.
c. Payment of money or transfer of a security held in the
name of a broker or a financial institution or its nominee to a
broker or financial institution for credit to an account in the
name of a trust company, an adult other than the transferor,
or the transferor if the beneficiary is other than the
transferor, designated in substance: “as custodial trustee for
________________ (name of beneficiary) under the Iowa Uniform
Custodial Trust Act”.
d. Registration of ownership of a life or endowment
insurance policy or annuity contract with the issuer in the
name of a trust company, an adult other than the transferor,
or the transferor if the beneficiary is other than the
transferor, designated in substance: “as custodial trustee for
________________ (name of beneficiary) under the Iowa Uniform
Custodial Trust Act”.
e. Delivery of a written assignment to an adult other
than the transferor or to a trust company whose name in the
assignment is designated in substance by the words: “as
-20-custodial trustee for ________________ (name of beneficiary)
under the Iowa Uniform Custodial Trust Act”.
f. Irrevocable exercise of a power of appointment, pursuant
to its terms, in favor of a trust company, an adult other than
the donee of the power, or the donee who holds the power if
the beneficiary is other than the donee, whose name in the
appointment is designated in substance: “as custodial trustee
for (name of beneficiary) under the Iowa Uniform Custodial
Trust Act”.
g. Delivery of a written notification or assignment of a
right to future payment under a contract to an obligor which
transfers the right under the contract to a trust company,
an adult other than the transferor, or the transferor if the
beneficiary is other than the transferor, whose name in the
notification or assignment is designated in substance: “as
custodial trustee for ________________ (name of beneficiary)
under the Iowa Uniform Custodial Trust Act”.
h. Execution, delivery, and recordation of a conveyance of
an interest in real property in the name of a trust company,
an adult other than the transferor, or the transferor if
the beneficiary is other than the transferor, designated in
substance: “as custodial trustee for ________________ (name of
beneficiary) under the Iowa Uniform Custodial Trust Act”.
i. Issuance of a certificate of title by an agency of a
state or of the United States which evidences title to tangible
personal property:
(1) Issued in the name of a trust company, an adult other
than the transferor, or the transferor if the beneficiary
is other than the transferor, designated in substance: “as
custodial trustee for ________________ (name of beneficiary)
under the Iowa Uniform Custodial Trust Act”.
(2) Delivered to a trust company or an adult other
than the transferor or endorsed by the transferor to that
person, designated in substance: “as custodial trustee for
________________ (name of beneficiary) under the Iowa Uniform
-21-Custodial Trust Act”.
j. Execution and delivery of an instrument of gift to a
trust company or an adult other than the transferor, designated
in substance: “as custodial trustee for ________________ (name
of beneficiary) under the Iowa Uniform Custodial Trust Act”.
Sec. 19. NEW SECTION. 633F.19 Applicable law.
1. This chapter applies to a transfer or declaration
creating a custodial trust that refers to this chapter if,
at the time of the transfer or declaration, the transferor,
beneficiary, or custodial trustee is a resident of or has its
principal place of business in this state or custodial trust
property is located in this state. The custodial trust remains
subject to this chapter despite a later change in residence or
principal place of business of the transferor, beneficiary, or
custodial trustee, or removal of the custodial trust property
from this state.
2. A transfer made pursuant to an act of another state
substantially similar to this chapter is governed by the law of
that state and may be enforced in this state.
Sec. 20. NEW SECTION. 633F.20 Uniformity of application
and construction.
This chapter shall be applied and construed to effectuate
its general purpose to make uniform the law with respect to the
subject of this chapter among states enacting it.
Sec. 21. NEW SECTION. 633F.21 Short title.
This chapter shall be known and may be cited as the “Iowa
Uniform Custodial Trust Act”.
DIVISION II
CONFORMING CHANGES
Sec. 22. Section 232D.503, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 6. If the court orders termination of a
guardianship established under this chapter and the guardian
has custody of any assets of a protected person who is a minor
or was a minor at the time of the minor’s death, the court
-22-shall order delivery of the minors assets to the minor or to a
fiduciary acting under one or more of the following:
a. A conservatorship established for the minor.
b. A personal representative appointed as a result of the
minor’s death.
c. A uniform transfer to minor account established for the
minor pursuant to chapter 565B or the laws of any other state.
d. A uniform custodial trust account established for the
minor pursuant to chapter 633F or the laws of any other state.
e. A college savings plan account established for the minor
pursuant to Internal Revenue Code section 529 or chapter 12D
or the laws of any other state.
f. An ABLE account established for the minor with
disabilities pursuant to Internal Revenue Code section 529A or
chapter 12I or the laws of any other state.
Sec. 23. Section 565B.6, subsection 3, paragraph c, Code
2021, is amended to read as follows:
c. The transfer is authorized by the court if all transfers,
including the transfer to be made and prior transfers, exceed
twenty-five fifty thousand dollars in value. Transfers by a
personal representative, trustee, or conservator shall not
be aggregated, but each personal representative, trustee, or
conservator shall be treated separately.
Sec. 24. Section 633.108, Code 2021, is amended to read as
follows:
633.108 Small distributions to minors — payment.
1. Whenever a minor person becomes entitled under the terms
of a will to a bequest or legacy, or to a share of the estate of
an intestate, and the value of the bequest, legacy, or share
does not exceed the sum of twenty-five fifty thousand dollars,
the personal representative may pay the bequest, legacy, or
share to a custodian under any uniform transfers to minors
Act interest to a fiduciary acting under one or more of the
accounts referenced in subsection 2.
2. Receipt by the custodian, when presented to the court or
-23-filed with the report of distribution of the fiduciary, shall
have the same force and effect as though the payment had been
made to a duly appointed and qualified conservator for the
minor. person entitled to them:
a. A uniform transfer to minor account established for the
minor pursuant to chapter 565B or the laws of any other state.
b. A uniform custodial trust account established for the
minor pursuant to chapter 633F or the laws of any other state.
c. A college savings plan account established for the minor
pursuant to Internal Revenue Code section 529 or chapter 12D.
d. An ABLE account established for the minor with
disabilities pursuant to Internal Revenue Code section 529A or
chapter 12I.
Sec. 25. Section 633.675, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 3A. The court shall terminate a
conservatorship if it finds by clear and convincing evidence
all of the following:
a. The value of the protected person’s property is
insufficient to justify the cost of administration.
b. That continued administration of the conservatorship is
not in the best interest of the protected person.
c. That a reasonable alternative exists under section
633.678 for managing the protected person’s assets.
Sec. 26. Section 633.678, Code 2021, is amended to read as
follows:
633.678 Delivery of assets.
1. Upon the termination of a conservatorship, all assets of
the conservatorship shall be delivered, under direction of the
court, to as ordered by the court to any of the following:
a. Tothe person or persons entitled to them.
b. To a custodian under a uniform transfers to minor account
established for the protected person pursuant to chapter 565B
or the laws of any other state.
c. To a custodial trustee under a uniform custodial trust
-24-account established for the protected person pursuant to
chapter 633F or the laws of any other state.
d. To an account owner or participant under a college
savings plan account established for the protected person
pursuant to Internal Revenue Code section 529 or chapter 12D
or the laws of any other state.
e. To the account owner under an ABLE account established
for the protected person with disabilities pursuant to Internal
Revenue Code section 529A or chapter 12I or the laws of any
other state.
2. Delivery of the assets of an adult protected person under
subsection 1, paragraphs “b” through “e”, shall have the same
force and effect as if delivery had been made directly to the
person or persons entitled to them. Delivery of the assets of
a minor protected person under subsection 1, paragraphs “b”
through “e”, shall have the same force and effect as if delivery
had been made to the protected person after attaining majority.
Sec. 27. Section 633.681, Code 2021, is amended to read as
follows:
633.681 Assets of minor ward exhausted Exhausted or minimal
assets of minor protected person.
1. When the assets of a minor ward’s protected person’s
conservatorship are exhausted or consist of personal property
only of an aggregate value not in excess of twenty-five fifty
thousand dollars, the court, upon application or upon its
own motion, may terminate the conservatorship. The order
for termination shall direct the conservator to deliver any
property remaining after the payment of allowed claims and
expenses of administration to a custodian under any uniform
transfers to minors Act. fiduciary acting under one or more of
the following accounts:
a. A uniform transfer to minor account established for the
minor pursuant to chapter 565B or the laws of any other state.
b. A uniform custodial trust account established for the
minor pursuant to chapter 633F or the laws of any other state.
-25- c. A college savings plan account established for the minor
pursuant to Internal Revenue Code section 529 or chapter 12D
or the laws of any other state.
d. An ABLE account established for the minor with
disabilities pursuant to Internal Revenue Code section 529A or
chapter 12I or the laws of any other state.
2. Such delivery shall have the same force and effect as
if delivery had been made to the ward protected person after
attaining majority.
______________________________
JAKE CHAPMAN
President of the Senate
______________________________
PAT GRASSLEY
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 240, Eighty-ninth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2021
______________________________
KIM REYNOLDS
Governor
-26-cm/jh/mb
termination of custodial trusts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
IOWA UNIFORM CUSTODIAL TRUST ACT
Section 1. NEW SECTION. 633F.1 Definitions.
For purposes of this chapter:
1. “Adult” means an individual who is at least eighteen
years of age.
2. “Beneficiary” means an individual for whom property has
been transferred to or held under a declaration of trust by a
custodial trustee for the individual’s use and benefit under
this chapter.
3. “Consent” means affirmation given by a person who is
not incapacitated; or if a person is incapacitated and there
is no conflict of interest between the representer and the
incapacitated person with respect to the fiduciary manner,
the following may consent on behalf of the incapacitated
individual:
a. A conservator may represent and bind the person whose
estate the conservator controls.
b. A trustee may represent and bind the beneficiary of a
trust.
c. A personal representative may represent and bind the
persons interested in the decedent’s estate.
d. If no conservator has been appointed, a parent may
represent and bind a minor child.
4. “Conservator” means a person appointed or qualified by a
court to manage the estate of an individual or a person legally
authorized to perform substantially the same functions.
5. “Court” means the probate court of this state.
6. “Custodial trust property” means an interest in property
transferred to or held under a declaration of trust by a
custodial trustee under this chapter and the income from and
proceeds of that interest.
7. “Custodial trustee” means a person designated as trustee
of a custodial trust under this chapter or a substitute or
successor to the person designated.
-1- 8. “Guardian” means a person appointed or qualified by
a court as a guardian of an individual, including a limited
guardian, but not a person who is only a court visitor.
9. “Incapacitated” means the inability of an individual to
manage property or business affairs because the individual is
any of the following:
a. An individual whose decision-making is so impaired that
the individual is unable to make, communicate, or carry out
important decisions concerning the individual’s financial
affairs.
b. Detailed or incarcerated in a penal system.
c. Outside the United States and unable to return.
d. A minor.
10. “Legal representative” means a living person’s
agent acting under a durable financial power of attorney or
conservator, a living or deceased person’s trustee acting
under a revocable trust created by such person, or a deceased
person’s personal representative.
11. “Member of the beneficiary’s family” means the following
persons who are competent adults at the time of acting
hereunder, with such action to be taken in the following order
of priority:
a. The surviving spouse, if not legally separated from the
beneficiary, whose whereabouts are reasonably ascertainable.
b. The surviving child of the beneficiary, or, if there
is more than one, a majority of the surviving children whose
whereabouts are reasonably ascertainable.
c. The surviving parents of the beneficiary whose
whereabouts are reasonably ascertainable.
d. A surviving grandchild of the beneficiary, or if there is
more than one, a majority of the surviving grandchildren whose
whereabouts are reasonably ascertainable.
e. A surviving sibling of the beneficiary, or if there
is more than one, a majority of the surviving siblings whose
whereabouts are reasonably ascertainable.
-2- f. A surviving grandparent of the beneficiary, or if there
is more than one, a majority of the surviving grandparents
whose whereabouts are reasonably ascertainable.
g. A person in the next degree of kinship to the beneficiary
in the order named by law who would inherit the estate of
the beneficiary under the rules of inheritance for intestate
succession, or if there is more than one, a majority of
such surviving persons whose whereabouts are reasonably
ascertainable.
12. “Person” means an individual, corporation, business
trust, estate, trust, partnership, joint venture, association,
or any other legal or commercial entity.
13. “Personal representative” means an executor,
administrator, or special administrator of a decedent’s estate,
a person legally authorized to perform substantially the same
functions, or a successor to any of them as defined in section
633.3.
14. “State” means a state, territory, or possession of the
United States, the District of Columbia, or the Commonwealth
of Puerto Rico.
15. “Transferor” means a person who creates a custodial
trust by transfer or declaration.
16. “Trust company” means a financial institution,
corporation, or other legal entity, authorized to exercise
general trust powers.
Sec. 2. NEW SECTION. 633F.2 Custodial trust — general.
1. A person may create a custodial trust of property by a
written transfer of the property to another person, evidenced
by registration or by other instrument of transfer, executed in
any lawful manner, naming as beneficiary, an individual who may
be the transferor, in which the transferee is designated, in
substance, as custodial trustee under this chapter.
2. A person may create a custodial trust of property by a
written declaration, evidenced by registration of the property
or by other instrument of declaration executed in any lawful
-3-manner, describing the property and naming as beneficiary an
individual other than the declarant, in which the declarant as
titleholder is designated, in substance, as custodial trustee
under this chapter. A registration or other declaration of
trust for the sole benefit of the declarant is not a custodial
trust under this chapter.
3. Title to custodial trust property is in the custodial
trustee and the beneficial interest is in the beneficiary.
4. Except as provided in subsection 5, a transferor shall
not terminate a custodial trust.
5. The beneficiary, if not incapacitated, or the legal
representative of an incapacitated beneficiary, may terminate
a custodial trust by delivering to the custodial trustee a
writing signed by the beneficiary or legal representative
declaring the termination. If not previously terminated, the
custodial trust terminates on the death of the beneficiary.
6. Any person may augment existing custodial trust property
by the addition of other property pursuant to this chapter,
only upon receipt and acceptance by the custodial trustee.
7. The transferor may designate, or authorize the
designation of, a successor custodial trustee in the trust
instrument.
8. This chapter does not displace or restrict other means
of creating trusts. A trust whose terms do not conform to this
chapter may be enforceable according to its terms under other
law.
Sec. 3. NEW SECTION. 633F.3 Custodial trustee for future
payment or transfer.
1. A person having the right to designate the recipient of
property payable or transferable upon a future event may create
a custodial trust upon the occurrence of the future event by
designating in writing the recipient, followed in substance
by: “as custodial trustee for __________________ (name of
beneficiary) under the Iowa Uniform Custodial Trust Act”.
2. Persons may be designated as substitute or successor
-4-custodial trustees to whom the property must be paid or
transferred in the order named if the first designated
custodial trustee is unable or unwilling to serve.
3. A designation under this section may be made in a will,
a trust, a multiple-party account, an insurance policy, an
instrument exercising a power of appointment, or a writing
designating a beneficiary of contractual rights. Otherwise,
to be effective, the designation must be registered with or
delivered to the fiduciary, payor, issuer, or obligor of the
future right.
Sec. 4. NEW SECTION. 633F.4 Form and effect of receipt and
acceptance by custodial trustee — jurisdiction.
1. Obligations of a custodial trustee, including the
obligation to follow directions of the beneficiary, arise under
this chapter upon the custodial trustee’s acceptance, express
or implied, of the custodial trust property.
2. The custodial trustee’s acceptance may be evidenced by a
writing stating in substance:
CUSTODIAL TRUSTEE’S RECEIPT AND ACCEPTANCE
I, _______ (name of custodial trustee) acknowledge receipt
of the custodial trust property described below or in the
attached instrument and accept the custodial trust as custodial
trustee for __________________ (name of beneficiary) under the
Iowa Uniform Custodial Trust Act. I undertake to administer
and distribute the custodial trust property pursuant to the
Iowa Uniform Custodial Trust Act. My obligations as custodial
trustee are subject to the directions of the beneficiary
unless the beneficiary is designated as, is, or becomes
incapacitated. The custodial trust property consists of
_____________________________.
Dated: _____________________________
(Signature of Custodial Trustee)
3. Upon accepting custodial trust property, a person
designated as custodial trustee under this chapter is subject
to personal jurisdiction of the court with respect to any
-5-matter relating to the custodial trust.
Sec. 5. NEW SECTION. 633F.5 Transfer to custodial trustee
by fiduciary or obligor — facility of payment.
1. Unless otherwise directed by an instrument designating
a custodial trustee pursuant to section 633F.3, a person,
including a fiduciary other than a custodial trustee, who holds
property of or owes a debt to an incapacitated individual may
make a transfer to a beneficiary’s legal representative and
if none, to a member of the beneficiary’s family, or a trust
company, as custodial trustee for the use and benefit of the
incapacitated individual. If the value of the property or
the debt exceeds fifty thousand dollars, the transfer is not
effective unless authorized by the court.
2. A written acknowledgment of delivery, signed by a
custodial trustee, is a sufficient receipt and discharge for
property transferred to the custodial trustee pursuant to this
section.
Sec. 6. NEW SECTION. 633F.6 Single beneficiaries —
separate trust accounts.
1. Beneficial interests in a custodial trust shall not be
created for multiple beneficiaries.
2. All custodial trust property held under this chapter by
the same custodial trustee for the use and benefit of a single
beneficiary may be administered as a single custodial trust.
Sec. 7. NEW SECTION. 633F.7 General duties of custodial
trustee.
1. If appropriate, a custodial trustee shall register
or record the instrument vesting title to custodial trust
property.
2. If the beneficiary is not incapacitated, a custodial
trustee shall follow the directions of the beneficiary in the
management, control, investment, or retention of the custodial
trust property. In the absence of effective contrary direction
by the beneficiary while not incapacitated, the custodial
trustee shall observe the prudent investment standards set
-6-forth in section 633.123. However, a custodial trustee, in the
custodial trustee’s discretion, may retain any custodial trust
property received from the transferor. If a custodial trustee
has a special skill or expertise or is named custodial trustee
on the basis of representation of a special skill or expertise,
the custodial trustee shall use that skill or expertise.
3. Subject to subsection 2, a custodial trustee shall take
control of and collect, hold, manage, invest, and reinvest
custodial trust property.
4. A custodial trustee at all times shall keep custodial
trust property of which the custodial trustee has control,
separate from all other property in a manner sufficient
to identify it clearly as custodial trust property of the
beneficiary. Custodial trust property, the title to which is
subject to recordation, is so identified if an appropriate
instrument so identifying the property is recorded, and
custodial trust property subject to registration is so
identified if it is registered, or held in an account in the
name of the custodial trustee, designated in substance: “as
custodial trustee for __________________ (name of beneficiary)
under the Iowa Uniform Custodial Trust Act”.
5. A custodial trustee shall keep records of all
transactions with respect to custodial trust property,
including information necessary for the preparation of tax
returns, and shall make the records and information available
at reasonable times to the beneficiary or legal representative
of the beneficiary.
6. The exercise of a durable power of attorney for an
incapacitated beneficiary is not effective to terminate or
direct the administration or distribution of a custodial trust.
Sec. 8. NEW SECTION. 633F.8 General powers of custodial
trustee.
1. A custodial trustee, acting in a fiduciary capacity, has
all the rights and powers over custodial trust property which
an unmarried adult owner has over individually owned property,
-7-but a custodial trustee may exercise those rights and powers
in a fiduciary capacity only.
2. This section does not relieve a custodial trustee from
liability for a violation of section 633F.7.
Sec. 9. NEW SECTION. 633F.9 Use of custodial trust
property.
1. A custodial trustee shall pay to the beneficiary or
expend for the beneficiary’s use and benefit so much or all
of the custodial trust property as the beneficiary while not
incapacitated may direct from time to time.
2. If the beneficiary is incapacitated, the custodial
trustee shall expend so much or all of the custodial trust
property as the custodial trustee considers advisable for the
use and benefit of the beneficiary and individuals who are
legally entitled to support by the beneficiary. Expenditures
may be made in the manner, when, and to the extent that the
custodial trustee determines suitable and proper, without court
order and without regard to other support, income, or property
of the beneficiary.
3. To facilitate distributions to the beneficiary, a
custodial trustee may establish checking, savings, or other
similar accounts of reasonable amounts under which either
the custodial trustee or the beneficiary, if authorized, may
withdraw funds from, or draw checks against, the accounts in
amounts authorized by the custodian. Funds withdrawn from,
or checks written against, the account by the beneficiary are
distributions of custodial trust property by the custodial
trustee to the beneficiary.
Sec. 10. NEW SECTION. 633F.10 Determination of incapacity
— effect.
1. The custodial trustee shall administer the custodial
trust as for an incapacitated beneficiary in any of the
following circumstances:
a. The custodial trust was created under section 633F.5.
b. The transferor has so directed in the instrument creating
-8-the custodial trust.
c. The custodial trustee has determined that the beneficiary
is incapacitated.
2. A custodial trustee may determine that the beneficiary is
incapacitated in reliance upon any of the following:
a. Previous direction or authority given by the beneficiary
while not incapacitated, including direction or authority
pursuant to a durable power of attorney.
b. Written documentation from the beneficiary’s physician.
c. Other persuasive evidence.
3. If a custodial trustee for an incapacitated beneficiary
reasonably concludes that the beneficiary’s incapacity has
ceased, or that circumstances concerning the beneficiary’s
ability to manage property and business affairs have
changed since the creation of a custodial trust directing
administration as for an incapacitated beneficiary, the
custodial trustee may administer the trust as for a beneficiary
who is not incapacitated.
4. On petition of the beneficiary, the custodial trustee, or
other person interested in the custodial trust property or the
welfare of the beneficiary, the court shall determine whether
the beneficiary is incapacitated.
5. Absent determination of incapacity of the beneficiary
under subsection 2 or 4, a custodial trustee who has reason to
believe that the beneficiary is incapacitated shall administer
the custodial trust in accordance with the provisions of this
chapter applicable to an incapacitated beneficiary.
6. Incapacity of a beneficiary does not terminate the
custodial trust, any designation of a successor custodial
trustee, rights or powers of the custodial trustee, or any
immunities of third persons acting on instructions of the
custodial trustee.
Sec. 11. NEW SECTION. 633F.11 Exemption of third person
from liability.
1. A third person in good faith and without a court order
-9-may act on instructions of, or otherwise deal with, a person
purporting to make a transfer as, or purporting to act in the
capacity of, a custodial trustee.
2. A third person who receives instructions from the
purported custodial trustee may require such custodial trustee
to provide proof of their identity and a certification of trust
or copies of those excerpts from the original trust instrument
and amendments to the original trust instrument which designate
the currently acting custodial trustee and confer upon the
custodial trustee the power to act in the pending transaction.
3. If a certification of trust is provided, it must do all
of the following:
a. State the names of all the currently acting trustees.
b. If there is more than one currently acting trustee,
state whether the trustees may act individually or must act by
majority decision or must act by unanimous decision.
c. State that the trust has not been revoked, modified, or
amended in any manner that would cause the representations in
the certification of trust to be incorrect.
d. Be signed by a currently acting trustee or the attorney
of a currently acting trustee.
e. Be dated and certified under penalty of perjury and
pursuant to the laws of the state of Iowa that it is true and
correct, or subscribed and sworn to under penalty of perjury
before a notary public as provided in chapter 9B.
f. A third person who acts in reliance upon the information
provided by the custodial trustee, after taking reasonable
steps to verify the identity of the custodial trustee and
without knowledge that the representations contained in the
certification are incorrect, is not liable to any person
for so acting and may assume without inquiry the existence
of the facts contained in the certification. The period of
time to verify the identity of the trustee shall not exceed
ten business days from the date the third person received
the requested information. Knowledge shall not be inferred
-10-solely from the fact that a copy of all or part of the trust
instrument is held by the third person relying upon the
trust certification. A transaction, and a lien created by a
transaction, entered into by the custodial trustee and a person
acting in reliance upon a certification of trust is enforceable
against the trust assets.
4. A third person who makes a demand for information from
the custodial trustee beyond that set forth in subsection
2 shall be liable for damages, including attorney fees,
incurred as a result of the refusal to accept the information
provided, if the court determines that the third person acted
unreasonably in requesting such additional information.
5. If a custodial trustee has provided the information set
forth in subsection 2, and the third person refuses to follow
the instructions provided by the custodial trustee within the
time period set forth in subsection 4, the custodial trustee
may bring an action under this subsection and the court may
award any or all of the following to the custodial trustee:
a. Any damages sustained by the trust.
b. The costs of the action.
c. A penalty in an amount of not less than five hundred
dollars and not more than ten thousand dollars.
d. Reasonable attorney fees, based on the value of the time
reasonably expended by the attorney and not on the amount of
the recovery on behalf of the custodial trustee.
6. An action shall not be brought under this subsection more
than one year after the date of the occurrence of the alleged
violation.
Sec. 12. NEW SECTION. 633F.12 Liability to third person.
1. A claim based on a contract entered into by a custodial
trustee acting in a fiduciary capacity, an obligation arising
from the ownership or control of custodial trust property, or
a tort committed in the course of administering the custodial
trust, may be asserted by a third person against the custodial
trust property by proceeding against the custodial trustee in a
-11-fiduciary capacity, whether or not the custodial trustee or the
beneficiary is personally liable.
2. A custodial trustee is not personally liable to a third
person for any of the following:
a. On a contract properly entered into in a fiduciary
capacity unless the custodial trustee fails to reveal that
capacity or to identify the custodial trust in the contract.
b. For an obligation arising from control of custodial
trust property or for a tort committed in the course of the
administration of the custodial trust unless the custodial
trustee is personally at fault.
3. A beneficiary is not personally liable to a third
person for an obligation arising from beneficial ownership of
custodial trust property or for a tort committed in the course
of administration of the custodial trust unless the beneficiary
is personally in possession of the custodial trust property
giving rise to the liability or is personally at fault.
4. Subsections 2 and 3 do not preclude actions or
proceedings to establish liability of the custodial trustee or
beneficiary to the extent the person sued is protected as the
insured by liability insurance.
Sec. 13. NEW SECTION. 633F.13 Declination, resignation,
incapacity, death, or removal of custodial trustee — designation
of successor custodial trustee.
1. Before accepting the custodial trust property, a person
designated as custodial trustee may decline to serve by
notifying the person who made the designation, the transferor,
or the transferor’s legal representative. If an event giving
rise to a transfer has not occurred, the substitute custodial
trustee designated under section 633F.3 becomes the custodial
trustee, or, if a substitute custodial trustee has not been
designated, the person who made the designation may designate
a substitute custodial trustee pursuant to section 633F.3.
In other cases, the transferor or the transferor’s legal
representative may designate a substitute custodial trustee.
-12- 2. A custodial trustee who has accepted the custodial trust
property may resign by doing all of the following:
a. Delivering written notice to a successor custodial
trustee, if any, the beneficiary and, if the beneficiary is
incapacitated, to the beneficiary’s legal representative, if
any.
b. Transferring or registering, or recording an appropriate
instrument relating to, the custodial trust property, in the
name of, and delivering the records to, the successor custodial
trustee identified under subsection 3.
3. If a custodial trustee or successor custodial trustee
is ineligible, resigns, dies, or becomes incapacitated, the
successor designated under section 633F.2, subsection 7, or
section 633F.3 becomes custodial trustee. If there is no
effective provision for a successor, the beneficiary if not
incapacitated, or the legal representative of an incapacitated
beneficiary, may designate a successor custodial trustee. If
the beneficiary is not incapacitated, but fails to act within
ninety days after the ineligibility, resignation, death, or
incapacity of the custodial trustee, or if the beneficiary
is incapacitated and the beneficiary’s legal representative
fails to act within ninety days after the ineligibility,
resignation, death, or incapacity of the custodial trustee,
then the beneficiary’s legal representative becomes successor
custodial trustee. If the beneficiary does not have a legal
representative or the legal representative fails to act, the
resigning custodial trustee may designate a successor custodial
trustee.
4. If a successor custodial trustee is not designated
pursuant to subsection 3, the transferor, the legal
representative of the transferor or of the custodial trustee,
a beneficiary’s legal representative and if none, a member of
the beneficiary’s family, a person interested in the custodial
trust property may petition the court to designate a successor
custodial trustee.
-13- 5. A custodial trustee who declines to serve or resigns,
or the legal representative of a deceased or incapacitated
custodial trustee, as soon as practicable, shall put the
custodial trust property and records in the possession and
control of the successor custodial trustee. The successor
custodial trustee may enforce the obligation to deliver
custodial trust property and records and becomes responsible
for each item as received.
6. A substitute custodial trustee designated under section
633F.3, the beneficiary, the beneficiary’s legal representative
and if none, a member of the beneficiary’s family, a person
interested in the custodial trust property, may petition the
court to remove the custodial trustee for cause and designate
a successor custodial trustee, to require the custodial
trustee to furnish a bond or other security for the faithful
performance of fiduciary duties, or for other appropriate
relief.
Sec. 14. NEW SECTION. 633F.14 Expenses, compensation, and
bond of custodial trustee.
Except as otherwise provided in the instrument creating the
custodial trust, in an agreement with the beneficiary, or by
court order, all of the following are true:
1. A custodial trustee is entitled to reimbursement from
custodial trust property for reasonable expenses incurred in
the performance of fiduciary services.
2. A custodial trustee has a noncumulative election, to be
made no later than six months after the end of each calendar
year, to charge a reasonable compensation for fiduciary
services performed during that year.
3. A custodial trustee need not furnish a bond or other
security for the faithful performance of fiduciary duties.
Sec. 15. NEW SECTION. 633F.15 Reporting and accounting
by custodial trustee — determination of liability of custodial
trustee.
1. Upon the acceptance of custodial trust property, the
-14-custodial trustee shall provide a written statement describing
the custodial trust property and shall thereafter provide a
written statement of the administration of the custodial trust
property as follows:
a. Once each year.
b. Upon request at reasonable times, but not more than
quarterly during any calendar year, by the beneficiary or the
beneficiary’s legal representative.
c. Upon resignation or removal of the custodial trustee.
d. Upon termination of the custodial trust.
2. The statements must be provided to the beneficiary
or to the beneficiary’s legal representative, if any. Upon
termination of the beneficiary’s interest, the custodial
trustee shall furnish a current statement to the person to whom
the custodial trust property is to be delivered.
3. A substitute or successor custodial trustee designated
under section 633F.3, a beneficiary, the beneficiary’s legal
representative, a member of the beneficiary’s family, or a
person interested in the custodial trust property may petition
the court for an accounting by the custodial trustee or the
custodial trustee’s legal representative.
4. A successor custodial trustee may petition the court for
an accounting by a predecessor custodial trustee.
5. In an action or proceeding under this chapter or in any
other proceeding, the court may require or permit the custodial
trustee or the custodial trustee’s legal representative to
account. The custodial trustee or the custodial trustee’s
legal representative may petition the court for approval of
final accounts.
6. If a custodial trustee is removed, the court shall
require an accounting and order delivery of the custodial trust
property and records to the successor custodial trustee and
the execution of all instruments required for transfer of the
custodial trust property.
7. On petition of the custodial trustee or any person who
-15-could petition for an accounting, the court, after notice to
interested persons, may issue instructions to the custodial
trustee or review the propriety of the acts of a custodial
trustee or the reasonableness of compensation determined by the
custodial trustee for the services of the custodial trustee or
others.
Sec. 16. NEW SECTION. 633F.16 Limitations of action against
custodial trustee.
1. Except as provided in subsection 3, unless previously
barred by adjudication, consent, or limitation, a claim for
relief against a custodial trustee for accounting or breach of
duty is barred as to a beneficiary, a person to whom custodial
trust property is to be paid or delivered, or the legal
representative of an incapacitated or deceased beneficiary or
payee who either:
a. Has received an accounting or other statement adequately
disclosing the matter unless an action or proceeding to assert
the claim is commenced within one year after receipt of such
accounting or statement.
b. Has not received an accounting or other statement
adequately disclosing the matter unless an action or proceeding
to assert the claim is commenced within three years after the
termination of the custodial trust.
2. For the purpose of subsection 1, a beneficiary or a
person to whom custodial trust property is to be paid or
delivered, is deemed to have received an accounting or other
statement, in the following instances:
a. In the case of an adult who is reasonably capable of
understanding the accounting or other statement if it is
personally received by such person.
b. In the case of an adult who is not reasonably capable
of understanding the accounting or other statement, if it is
received by such adult person’s legal representative, and if
none, then if received by a guardian ad litem, court visitor,
or other person appointed for this purpose.
-16- c. In the case of a minor, if it is received by a person who
has authority to consent on the minor’s behalf, and if none,
then if received by a guardian ad litem, court visitor, or
other person appointed for this purpose.
3. Except as provided in subsection 4, a claim for relief to
recover from a custodial trustee for fraud, misrepresentation,
or concealment related to the final settlement of the custodial
trust or concealment of the existence of the custodial trust,
is barred unless an action or proceeding to assert the claim
is commenced within five years after the termination of the
custodial trust.
4. Unless an accounting or other statement adequately
disclosing the matter was provided as set forth above, a claim
for relief is not barred by this section if the claimant is or
was any of the following:
a. A minor, until the earlier of one year after the claimant
becomes an adult or dies; an incapacitated adult, until the
earliest of one year after the following:
(1) The appointment of a legal representative.
(2) The removal of the incapacity.
(3) The death of the claimant.
b. An adult, now deceased, who was not incapacitated, until
one year after the claimant’s death.
Sec. 17. NEW SECTION. 633F.17 Distribution on termination.
1. Upon termination of a custodial trust, the custodial
trustee shall transfer the unexpended custodial trust property:
a. To the beneficiary, if not incapacitated or deceased.
b. To the beneficiary’s legal representative or other
recipient designated by the court for an incapacitated
beneficiary.
c. Upon the beneficiary’s death, in the following order:
(1) As last directed in a writing signed by the deceased
beneficiary while not incapacitated and received by the
custodial trustee during the life of the deceased.
(2) As designated in the instrument creating the custodial
-17-trust.
(3) To the estate of the deceased beneficiary.
2. The direction to the custodial trustee by a beneficiary
who is not incapacitated, for distribution on termination
of the custodial trust may be in any written form clearly
identifying the distributee and may be substantially similar
to the following:
I, ________________ (name of beneficiary) hereby direct
_____________________ (name of custodial trustee) as custodial
trustee, to transfer and pay the unexpended balance of
the custodial trust property of which I am beneficiary to
__________________ as distributee on the termination of the
trust at my death. In the event of the prior death of _________
above named as distributee, I designate ________________ as
distributee of the custodial trust property.
Signed ______________________ (signature of beneficiary).
Date ____________________
Receipt Acknowledged: ____________________ (signature of
custodial trustee)
Date ___________________
3. If, when the custodial trust would otherwise terminate,
the distributee is incapacitated, the custodial trust continues
for the use and benefit of the distributee as beneficiary until
the incapacity is removed or the custodial trust is otherwise
terminated.
4. Death of a beneficiary does not terminate the power of
the custodial trustee to discharge obligations of the custodial
trustee or beneficiary incurred before the termination of the
custodial trust.
Sec. 18. NEW SECTION. 633F.18 Methods and forms for
creating custodial trusts.
1. If a transaction, including a declaration with respect
to or a transfer of specific property, otherwise satisfies
applicable law, the criteria of section 633F.2 are satisfied
by any of the following:
-18- a. The execution and either delivery to the custodial
trustee or recording of an instrument in substantially the
following form:
TRANSFER UNDER THE IOWA UNIFORM CUSTODIAL TRUST ACT
I, __________ (name of transferor or name and representative
capacity if a fiduciary), transfer to __________ (name of
trustee other than transferor), as custodial trustee for
__________ (name of beneficiary) as beneficiary and __________
as distributee on termination of the trust in absence of
direction by the beneficiary under the Iowa Uniform Custodial
Trust Act, the following:
__________ (Insert a description of the custodial trust
property legally sufficient to identify and transfer each item
of property).
If __________ (name of trustee other than transferor)
declines to serve or ceases to serve as custodial trustee for
any reason, then I designate __________ (name of substitute
or successor custodial trustee) as substitute or successor
custodial trustee.
Dated: _______________
Signature: _____________________
b. The execution and the recording or giving notice of its
execution to the beneficiary of an instrument in substantially
the following form:
DECLARATION OF TRUST UNDER IOWA UNIFORM CUSTODIAL TRUST ACT
I, __________ (name of owner of property), declare that
henceforth I hold as custodial trustee for __________ (name of
beneficiary other than transferor) as beneficiary and ________
as distributee on termination of the trust in absence of
direction by the beneficiary under the Iowa Uniform Custodial
Trust Act, the following: __________ (Insert a description of
the custodial trust property legally sufficient to identify
and transfer each item of property). If I cease to serve as
custodial trustee for any reason, then I designate __________
(name of substitute or successor custodial trustee) as
-19-successor custodial trustee.
Dated: ____________________
Signature: ___________________________
2. Customary methods of transferring or evidencing
ownership of property may be used to create a custodial trust,
including any of the following:
a. Registration of a security in the name of a trust
company, an adult other than the transferor, or the transferor
if the beneficiary is other than the transferor, designated in
substance “as custodial trustee for ________________ (name of
beneficiary) under the Iowa Uniform Custodial Trust Act”.
b. Delivery of a certificated security, or a document
necessary for the transfer of an uncertificated security,
together with any necessary endorsement, to an adult other than
the transferor or to a trust company as custodial trustee,
accompanied by an instrument in substantially the form
prescribed in subsection 1, paragraph “a”.
c. Payment of money or transfer of a security held in the
name of a broker or a financial institution or its nominee to a
broker or financial institution for credit to an account in the
name of a trust company, an adult other than the transferor,
or the transferor if the beneficiary is other than the
transferor, designated in substance: “as custodial trustee for
________________ (name of beneficiary) under the Iowa Uniform
Custodial Trust Act”.
d. Registration of ownership of a life or endowment
insurance policy or annuity contract with the issuer in the
name of a trust company, an adult other than the transferor,
or the transferor if the beneficiary is other than the
transferor, designated in substance: “as custodial trustee for
________________ (name of beneficiary) under the Iowa Uniform
Custodial Trust Act”.
e. Delivery of a written assignment to an adult other
than the transferor or to a trust company whose name in the
assignment is designated in substance by the words: “as
-20-custodial trustee for ________________ (name of beneficiary)
under the Iowa Uniform Custodial Trust Act”.
f. Irrevocable exercise of a power of appointment, pursuant
to its terms, in favor of a trust company, an adult other than
the donee of the power, or the donee who holds the power if
the beneficiary is other than the donee, whose name in the
appointment is designated in substance: “as custodial trustee
for (name of beneficiary) under the Iowa Uniform Custodial
Trust Act”.
g. Delivery of a written notification or assignment of a
right to future payment under a contract to an obligor which
transfers the right under the contract to a trust company,
an adult other than the transferor, or the transferor if the
beneficiary is other than the transferor, whose name in the
notification or assignment is designated in substance: “as
custodial trustee for ________________ (name of beneficiary)
under the Iowa Uniform Custodial Trust Act”.
h. Execution, delivery, and recordation of a conveyance of
an interest in real property in the name of a trust company,
an adult other than the transferor, or the transferor if
the beneficiary is other than the transferor, designated in
substance: “as custodial trustee for ________________ (name of
beneficiary) under the Iowa Uniform Custodial Trust Act”.
i. Issuance of a certificate of title by an agency of a
state or of the United States which evidences title to tangible
personal property:
(1) Issued in the name of a trust company, an adult other
than the transferor, or the transferor if the beneficiary
is other than the transferor, designated in substance: “as
custodial trustee for ________________ (name of beneficiary)
under the Iowa Uniform Custodial Trust Act”.
(2) Delivered to a trust company or an adult other
than the transferor or endorsed by the transferor to that
person, designated in substance: “as custodial trustee for
________________ (name of beneficiary) under the Iowa Uniform
-21-Custodial Trust Act”.
j. Execution and delivery of an instrument of gift to a
trust company or an adult other than the transferor, designated
in substance: “as custodial trustee for ________________ (name
of beneficiary) under the Iowa Uniform Custodial Trust Act”.
Sec. 19. NEW SECTION. 633F.19 Applicable law.
1. This chapter applies to a transfer or declaration
creating a custodial trust that refers to this chapter if,
at the time of the transfer or declaration, the transferor,
beneficiary, or custodial trustee is a resident of or has its
principal place of business in this state or custodial trust
property is located in this state. The custodial trust remains
subject to this chapter despite a later change in residence or
principal place of business of the transferor, beneficiary, or
custodial trustee, or removal of the custodial trust property
from this state.
2. A transfer made pursuant to an act of another state
substantially similar to this chapter is governed by the law of
that state and may be enforced in this state.
Sec. 20. NEW SECTION. 633F.20 Uniformity of application
and construction.
This chapter shall be applied and construed to effectuate
its general purpose to make uniform the law with respect to the
subject of this chapter among states enacting it.
Sec. 21. NEW SECTION. 633F.21 Short title.
This chapter shall be known and may be cited as the “Iowa
Uniform Custodial Trust Act”.
DIVISION II
CONFORMING CHANGES
Sec. 22. Section 232D.503, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 6. If the court orders termination of a
guardianship established under this chapter and the guardian
has custody of any assets of a protected person who is a minor
or was a minor at the time of the minor’s death, the court
-22-shall order delivery of the minors assets to the minor or to a
fiduciary acting under one or more of the following:
a. A conservatorship established for the minor.
b. A personal representative appointed as a result of the
minor’s death.
c. A uniform transfer to minor account established for the
minor pursuant to chapter 565B or the laws of any other state.
d. A uniform custodial trust account established for the
minor pursuant to chapter 633F or the laws of any other state.
e. A college savings plan account established for the minor
pursuant to Internal Revenue Code section 529 or chapter 12D
or the laws of any other state.
f. An ABLE account established for the minor with
disabilities pursuant to Internal Revenue Code section 529A or
chapter 12I or the laws of any other state.
Sec. 23. Section 565B.6, subsection 3, paragraph c, Code
2021, is amended to read as follows:
c. The transfer is authorized by the court if all transfers,
including the transfer to be made and prior transfers, exceed
twenty-five fifty thousand dollars in value. Transfers by a
personal representative, trustee, or conservator shall not
be aggregated, but each personal representative, trustee, or
conservator shall be treated separately.
Sec. 24. Section 633.108, Code 2021, is amended to read as
follows:
633.108 Small distributions to minors — payment.
1. Whenever a minor person becomes entitled under the terms
of a will to a bequest or legacy, or to a share of the estate of
an intestate, and the value of the bequest, legacy, or share
does not exceed the sum of twenty-five fifty thousand dollars,
the personal representative may pay the bequest, legacy, or
share to a custodian under any uniform transfers to minors
Act interest to a fiduciary acting under one or more of the
accounts referenced in subsection 2.
2. Receipt by the custodian, when presented to the court or
-23-filed with the report of distribution of the fiduciary, shall
have the same force and effect as though the payment had been
made to a duly appointed and qualified conservator for the
minor. person entitled to them:
a. A uniform transfer to minor account established for the
minor pursuant to chapter 565B or the laws of any other state.
b. A uniform custodial trust account established for the
minor pursuant to chapter 633F or the laws of any other state.
c. A college savings plan account established for the minor
pursuant to Internal Revenue Code section 529 or chapter 12D.
d. An ABLE account established for the minor with
disabilities pursuant to Internal Revenue Code section 529A or
chapter 12I.
Sec. 25. Section 633.675, Code 2021, is amended by adding
the following new subsection:
NEW SUBSECTION. 3A. The court shall terminate a
conservatorship if it finds by clear and convincing evidence
all of the following:
a. The value of the protected person’s property is
insufficient to justify the cost of administration.
b. That continued administration of the conservatorship is
not in the best interest of the protected person.
c. That a reasonable alternative exists under section
633.678 for managing the protected person’s assets.
Sec. 26. Section 633.678, Code 2021, is amended to read as
follows:
633.678 Delivery of assets.
1. Upon the termination of a conservatorship, all assets of
the conservatorship shall be delivered, under direction of the
court, to as ordered by the court to any of the following:
a. Tothe person or persons entitled to them.
b. To a custodian under a uniform transfers to minor account
established for the protected person pursuant to chapter 565B
or the laws of any other state.
c. To a custodial trustee under a uniform custodial trust
-24-account established for the protected person pursuant to
chapter 633F or the laws of any other state.
d. To an account owner or participant under a college
savings plan account established for the protected person
pursuant to Internal Revenue Code section 529 or chapter 12D
or the laws of any other state.
e. To the account owner under an ABLE account established
for the protected person with disabilities pursuant to Internal
Revenue Code section 529A or chapter 12I or the laws of any
other state.
2. Delivery of the assets of an adult protected person under
subsection 1, paragraphs “b” through “e”, shall have the same
force and effect as if delivery had been made directly to the
person or persons entitled to them. Delivery of the assets of
a minor protected person under subsection 1, paragraphs “b”
through “e”, shall have the same force and effect as if delivery
had been made to the protected person after attaining majority.
Sec. 27. Section 633.681, Code 2021, is amended to read as
follows:
633.681 Assets of minor ward exhausted Exhausted or minimal
assets of minor protected person.
1. When the assets of a minor ward’s protected person’s
conservatorship are exhausted or consist of personal property
only of an aggregate value not in excess of twenty-five fifty
thousand dollars, the court, upon application or upon its
own motion, may terminate the conservatorship. The order
for termination shall direct the conservator to deliver any
property remaining after the payment of allowed claims and
expenses of administration to a custodian under any uniform
transfers to minors Act. fiduciary acting under one or more of
the following accounts:
a. A uniform transfer to minor account established for the
minor pursuant to chapter 565B or the laws of any other state.
b. A uniform custodial trust account established for the
minor pursuant to chapter 633F or the laws of any other state.
-25- c. A college savings plan account established for the minor
pursuant to Internal Revenue Code section 529 or chapter 12D
or the laws of any other state.
d. An ABLE account established for the minor with
disabilities pursuant to Internal Revenue Code section 529A or
chapter 12I or the laws of any other state.
2. Such delivery shall have the same force and effect as
if delivery had been made to the ward protected person after
attaining majority.
______________________________
JAKE CHAPMAN
President of the Senate
______________________________
PAT GRASSLEY
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 240, Eighty-ninth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2021
______________________________
KIM REYNOLDS
Governor
-26-cm/jh/mb