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House File 2484 - IntroducedA Bill ForAn Act 1relating to trusts, including optional notices to
2creditors when a will has been admitted to probate without
3administration and the trust is the beneficiary of the
4estate, trust accounting, specific powers of a trustee, and
5representation of holders of power and similar interests.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 633A.3110, Code 2022, is amended by
2adding the following new subsection:
3 NEW SUBSECTION. 12. The form of notice set forth in
4subsection 5 may also contain the following optional language
5in substantially the following form which, if included, shall
6serve to bar any claim against the assets of the decedent’s
7estate in the same manner and subject to the same limitations
8as provided in section 633A.3109 with respect to the assets of
9the trust:
10Notice is further given that the will of the decedent has
11been admitted to probate without present administration in the
12[above-named] court, that such will designates the trust as the
13residual beneficiary of the estate, that all persons indebted
14to the estate of the decedent are requested to make immediate
15payment to the undersigned trustee, and that any person or
16entity possessing a claim against the estate must mail proof
17of the claim to the trustee at the address listed below by
18certified mail, return receipt requested, by the later to occur
19of four months from the date of the second publication of this
20notice or thirty days from the date of mailing this notice if
21required, or the claim shall be forever barred, unless paid or
22otherwise satisfied.
23 Sec. 2. Section 633A.4213, subsection 3, Code 2022, is
24amended to read as follows:
253. Except as provided in subsection 4, a trustee
26shall provide annually to each adult beneficiary and the
27representative of any minor or incompetent beneficiary who
28may receive a distribution of income or principal during the
29accounting time period, an accounting, unless an accounting has
30been waived specifically for that accounting time period. Upon
31request, the accounting shall include the beginning balance and
32the ending balance.
33 Sec. 3. Section 633A.4402, subsection 27, unnumbered
34paragraph 1, Code 2022, is amended to read as follows:
35With respect to any actual or potential violation of
-1-1any environmental law affecting property held directly or
2indirectly by the trustee, a trustee shall may do all of the
3following:
4 Sec. 4. Section 633A.6302, Code 2022, is amended by adding
5the following new subsection:
6 NEW SUBSECTION. 3. To the extent there is no conflict of
7interest with respect to the fiduciary matter, the person or
8persons holding a limited power of appointment and the taker or
9takers in default of the exercise of such power may together
10represent and bind persons whose interests are dependent on the
11affirmative exercise of such power of appointment by the holder
12or holders of the power.
13 Sec. 5. Section 633A.6304, Code 2022, is amended to read as
14follows:
15633A.6304 Representation by holders of similar interests.
16Unless otherwise represented, a minor, or an incompetent,
17unborn, or unascertained person, or a remote contingent
18beneficiary may be represented by and bound by another person
19having a substantially identical interest with respect to the
20fiduciary matter but only to the extent that the person’s
21interest is adequately represented.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill relates to trusts, including optional notices to
26creditors when a will has been admitted to probate without
27administration and the trust is the beneficiary of the
28estate, trust accounting, specific powers of a trustee, and
29representation of holders of power and similar interests.
30The bill provides optional language that may be included in
31a notice given to creditors, heirs, and surviving spouses for
32when a decedent’s will has been admitted to probate without
33administration. If such notice is provided, creditors must
34mail proof of claims to the trustee within four months or else
35be barred from asserting such claims.
-2- 1The bill provides that annual accountings of the trust
2provided by the trustee to each beneficiary shall include the
3beginning and ending balances of the trust upon request.
4The bill changes the specific powers designated to a trustee
5relating to obligations a trustee has when there is an actual
6or potential violation of an environmental law on a property
7held by a trustee. The bill makes such obligations into
8optional actions that a trustee may take.
9The bill provides for holders of a limited power of
10appointment along with the taker in default of the appointment
11power to jointly represent and bind a person whose interest is
12dependent upon that power of appointment.
13The bill allows first order remainder beneficiaries to
14represent a remote contingent beneficiary in addition to a
15minor or an incompetent, unborn, or unascertained person.
-3-cm/jh
2creditors when a will has been admitted to probate without
3administration and the trust is the beneficiary of the
4estate, trust accounting, specific powers of a trustee, and
5representation of holders of power and similar interests.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 633A.3110, Code 2022, is amended by
2adding the following new subsection:
3 NEW SUBSECTION. 12. The form of notice set forth in
4subsection 5 may also contain the following optional language
5in substantially the following form which, if included, shall
6serve to bar any claim against the assets of the decedent’s
7estate in the same manner and subject to the same limitations
8as provided in section 633A.3109 with respect to the assets of
9the trust:
10Notice is further given that the will of the decedent has
11been admitted to probate without present administration in the
12[above-named] court, that such will designates the trust as the
13residual beneficiary of the estate, that all persons indebted
14to the estate of the decedent are requested to make immediate
15payment to the undersigned trustee, and that any person or
16entity possessing a claim against the estate must mail proof
17of the claim to the trustee at the address listed below by
18certified mail, return receipt requested, by the later to occur
19of four months from the date of the second publication of this
20notice or thirty days from the date of mailing this notice if
21required, or the claim shall be forever barred, unless paid or
22otherwise satisfied.
23 Sec. 2. Section 633A.4213, subsection 3, Code 2022, is
24amended to read as follows:
253. Except as provided in subsection 4, a trustee
26shall provide annually to each adult beneficiary and the
27representative of any minor or incompetent beneficiary who
28may receive a distribution of income or principal during the
29accounting time period, an accounting, unless an accounting has
30been waived specifically for that accounting time period. Upon
31request, the accounting shall include the beginning balance and
32the ending balance.
33 Sec. 3. Section 633A.4402, subsection 27, unnumbered
34paragraph 1, Code 2022, is amended to read as follows:
35With respect to any actual or potential violation of
-1-1any environmental law affecting property held directly or
2indirectly by the trustee, a trustee shall may do all of the
3following:
4 Sec. 4. Section 633A.6302, Code 2022, is amended by adding
5the following new subsection:
6 NEW SUBSECTION. 3. To the extent there is no conflict of
7interest with respect to the fiduciary matter, the person or
8persons holding a limited power of appointment and the taker or
9takers in default of the exercise of such power may together
10represent and bind persons whose interests are dependent on the
11affirmative exercise of such power of appointment by the holder
12or holders of the power.
13 Sec. 5. Section 633A.6304, Code 2022, is amended to read as
14follows:
15633A.6304 Representation by holders of similar interests.
16Unless otherwise represented, a minor, or an incompetent,
17unborn, or unascertained person, or a remote contingent
18beneficiary may be represented by and bound by another person
19having a substantially identical interest with respect to the
20fiduciary matter but only to the extent that the person’s
21interest is adequately represented.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill relates to trusts, including optional notices to
26creditors when a will has been admitted to probate without
27administration and the trust is the beneficiary of the
28estate, trust accounting, specific powers of a trustee, and
29representation of holders of power and similar interests.
30The bill provides optional language that may be included in
31a notice given to creditors, heirs, and surviving spouses for
32when a decedent’s will has been admitted to probate without
33administration. If such notice is provided, creditors must
34mail proof of claims to the trustee within four months or else
35be barred from asserting such claims.
-2- 1The bill provides that annual accountings of the trust
2provided by the trustee to each beneficiary shall include the
3beginning and ending balances of the trust upon request.
4The bill changes the specific powers designated to a trustee
5relating to obligations a trustee has when there is an actual
6or potential violation of an environmental law on a property
7held by a trustee. The bill makes such obligations into
8optional actions that a trustee may take.
9The bill provides for holders of a limited power of
10appointment along with the taker in default of the appointment
11power to jointly represent and bind a person whose interest is
12dependent upon that power of appointment.
13The bill allows first order remainder beneficiaries to
14represent a remote contingent beneficiary in addition to a
15minor or an incompetent, unborn, or unascertained person.
-3-cm/jh