HF 2517 (LSB 5834HV (3) 90)

RELATING TO TRUSTS, INCLUDING IRREVOCABLE TRUSTS, TRUST  PETITIONS, AND TRUST PROCEEDINGS. 

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 633A.2203, subsection 5, Code 2024, is amended to read as follows:
   5.  A spendthrift provision, or a provision giving the trustee discretion to distribute income or principal to a beneficiary or among beneficiaries, in the terms of the trust is presumed to constitute a material purpose of the trust may help implement a material purpose of the settlor.  A spendthrift provision, or a provision giving the trustee discretion to distribute income or principal to a beneficiary or among beneficiaries, is enforceable against beneficiaries and third parties that attempt to force the trustee to act or to reach trust assets. A spendthrift provision, or a provision giving the trustee discretion to distribute income or principal to a beneficiary or among beneficiaries, does not create a presumption that the settlor would not want the trust to be modified or terminated when all of the beneficiaries consent and if circumstances not anticipated by the settlor indicate that the best interests of the beneficiaries as a class will be better served if the trust is modified or terminated.
    Sec. 2.  Section 633A.6202, subsection 1, Code 2024, is amended to read as follows:

   1.  Except as otherwise provided in section 633A.3103, a trustee, or beneficiary, or other interested party of a trust may petition the court concerning the internal affairs of the trust or to determine the existence of the trust.
    Sec. 3.  Section 633A.6202, subsection 2, paragraphs e, f, h, i, j, and k, Code 2024, are amended to read as follows:
   e.  Settle accounts and pass upon the acts of the any trustee, trust director, or trust protector, including the exercise of discretionary powers.
   f.  Instruct the any trustee, trust director, or trust protector.
   h.  Grant powers to or modify powers of the any trustee, trust director, or trust protector.
   i.  Fix or allow payment of the trustee’s compensation of the trustee or any trust director or trust protector or review the reasonableness of the compensation.
   j.  Appoint or remove a any trustee, trust director, or trust protector.
   k.  Accept the resignation of a any trustee, trust director, or trust protector.

______________________________
PAT GRASSLEY
Speaker of the House

______________________________
AMY SINCLAIR
President of the Senate

   I hereby certify that this bill originated in the House and is known as House File 2517, Ninetieth General Assembly.

______________________________
MEGHAN NELSON
Chief Clerk of the House

Approved _______________, 2024

______________________________
KIM REYNOLDS
Governor