Bill Text: IA HF2128 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act relating to probate and the administration of small estates and including applicability provisions. (Formerly HSB 501.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2018-03-12 - Withdrawn. H.J. 566. [HF2128 Detail]

Download: Iowa-2017-HF2128-Introduced.html

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House File 2128 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON JUDICIARY

                                 (SUCCESSOR TO HSB 501)

                                      A BILL FOR

  1 An Act relating to probate and the administration of small
  2    estates and including applicability provisions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 635.1, Code 2018, is amended to read as
  1  2 follows:
  1  3    635.1  When applicable.
  1  4    When the gross value of the probate assets of a decedent
  1  5 subject to the jurisdiction of this state does not exceed one
  1  6  two hundred thousand dollars, and upon a petition as provided
  1  7 in section 635.2 of an authorized petitioner in accordance with
  1  8  sections 633.227 and 633.228, or section 633.290, subsection
  1  9 1, paragraph "a" or "b", the clerk shall issue letters of
  1 10 appointment for administration to the proposed personal
  1 11 representative named in the petition, if qualified to serve
  1 12 pursuant to section 633.63 or upon court order pursuant to
  1 13 section 633.64. Unless otherwise provided in this chapter, the
  1 14 provisions of chapter 633 apply to an estate probated pursuant
  1 15 to this chapter.
  1 16    Sec. 2.  Section 635.7, Code 2018, is amended to read as
  1 17 follows:
  1 18    635.7  Report and inventory ==== value and conversion.
  1 19    1.  The personal representative is required to file the
  1 20 report and inventory for which provision is made in section
  1 21 633.361, including all probate and nonprobate assets. This
  1 22 chapter does not exempt the personal representative from
  1 23 complying with the requirements of section 422.27, 450.22,
  1 24 450.58, 633.480, or 633.481, and the administration of an
  1 25 estate whether converted to or from a small estate shall be
  1 26 considered one proceeding pursuant to section 633.330.
  1 27    2.  The report and inventory shall show the gross value of
  1 28 probate assets subject to the jurisdiction of this state.
  1 29    3.  If the gross value of probate assets subject to the
  1 30 jurisdiction of this state exceeds the amount permitted
  1 31 for a small estate under section 635.1, the estate shall be
  1 32 administered as provided in chapter 633.
  1 33    4.  If the report and inventory in an estate probated
  1 34 pursuant to chapter 633 shows the gross value of the probate
  1 35 assets subject to the jurisdiction of this state does not
  2  1 exceed the amount permitted under section 635.1, the estate
  2  2 shall be administered as a small estate upon the filing of a
  2  3 statement by the personal representative that the estate is a
  2  4 small estate.
  2  5    5.  If the personal representative files a statement to
  2  6 convert the estate administration to or from a small estate
  2  7 based on the gross value of probate assets subject to the
  2  8 jurisdiction of this state, the clerk shall make the conversion
  2  9 without an order of the court.
  2 10    5.  6.  Other interested parties may apply to convert
  2 11 proceedings from a small estate to a regular estate or from a
  2 12 regular estate to a small estate which the court may grant only
  2 13 upon good cause shown with approval from the court.
  2 14    Sec. 3.  Section 635.8, Code 2018, is amended to read as
  2 15 follows:
  2 16    635.8  Closing by sworn statement.
  2 17    1.  The personal representative shall file with the court
  2 18 a closing statement and proof of service thereof to all
  2 19 interested parties within a reasonable time from the date of
  2 20 issuance of the letters of appointment. The closing statement
  2 21 shall be verified or affirmed under penalty of perjury
  2 22 stating and shall include all of the following statements and
  2 23 information:
  2 24    a.  To the best knowledge of the personal representative, the
  2 25 gross value of the probate assets subject to the jurisdiction
  2 26 of this state does not exceed the amount permitted under
  2 27 section 635.1.
  2 28    b.  The estate has been fully administered and will be
  2 29 distributed to persons entitled thereto if no objection is
  2 30 filed to the closing statement and the accounting and proposed
  2 31 distribution within thirty days after service thereof.
  2 32    c.  An accounting and proposed distribution of the estate
  2 33 including an accurate description of all the real estate of
  2 34 which the decedent died seized, stating the nature and extent
  2 35 of the interest in the real estate and its disposition.
  3  1    d.  A copy of the closing statement and a notice of an
  3  2 opportunity to object to and request a hearing has been sent,
  3  3 as provided in section 633.40, to all interested parties Notice
  3  4 to all interested parties that the parties have thirty days
  3  5 from the date of service of the closing statement in which to
  3  6 request a hearing by filing an objection with the court.
  3  7    e.   A statement as to whether or not that all statutory
  3  8 requirements pertaining to taxes have been complied with,
  3  9 including whether federal estate tax due has been paid, whether
  3 10 a lien continues to exist for any federal estate tax, and
  3 11 whether inheritance tax was paid or a tax return was filed in
  3 12 this state.
  3 13    f.  A statement that all statutory requirements pertaining to
  3 14 claims have been complied with and a statement describing the
  3 15 resolution of all claims, including charges, and whether a lien
  3 16 continues to exist on any property as security for any claim.
  3 17    f.  g.  The amount of fees to be paid to the personal
  3 18 representative and the personal representative's attorney
  3 19 with the appropriate documentation showing compliance with
  3 20 subsection 4.
  3 21    2.  If no actions or proceedings involving the estate are
  3 22 pending in the court thirty days after service of the closing
  3 23 statement to all interested parties as provided in section
  3 24 633.40, the estate shall be distributed according to the
  3 25 closing statement.
  3 26    3.  The estate clerk shall close the estate without order of
  3 27 the court and the personal representative shall be discharged
  3 28 upon the earlier of either of the following:
  3 29    a.  The filing of an affidavit of mailing or other proof
  3 30 of service of the closing statement and a statement of asset
  3 31 distribution by the personal representative Filing an affidavit
  3 32 of mailing or other proof of service of the closing statement
  3 33 and filing proof of asset distribution, including receipts and
  3 34 other evidence of disbursement.
  3 35    b.   Sixty days after the filing of the closing statement and
  4  1 an affidavit of mailing or other proof of service thereof.
  4  2    4.  The fees for the personal representative shall not
  4  3 exceed three percent of the gross value of the probate assets
  4  4 of the estate, unless the personal representative itemizes
  4  5 the personal representative's services to the estate. The
  4  6 personal representative's attorney shall be paid reasonable
  4  7 fees as approved by the court or as agreed to in writing by
  4  8 the personal representative and such writing shall be executed
  4  9 by the time of filing the probate inventory. All interested
  4 10 parties shall have the opportunity to object and request a
  4 11 hearing as to all fees reported in the closing statement.
  4 12    5.  If a closing statement is not filed within twelve
  4 13 months of the date of issuance of a letter of appointment, an
  4 14 interlocutory report shall be filed within such time period.
  4 15 Such report shall be provided to all interested parties at
  4 16 least once every six months until the closing statement has
  4 17 been filed unless excused by the court for good cause shown.
  4 18 The provisions of section 633.473 requiring final settlement
  4 19 within three years shall apply to an estate probated pursuant
  4 20 to this chapter. A closing statement filed under this section
  4 21 has the same effect as final settlement of the estate under
  4 22 chapter 633.
  4 23    Sec. 4.  APPLICABILITY.  The following applies July 1,
  4 24 2018, to estates opened under chapter 635 or converted from
  4 25 administration under chapter 633 on or after July 1, 2018:
  4 26    The section of this Act amending section 635.1.
  4 27    Sec. 5.  APPLICABILITY.  The following applies July 1, 2018,
  4 28 to estates being probated under chapter 635 on or after July
  4 29 1, 2018:
  4 30    The sections of this Act amending sections 635.7 and 635.8.
  4 31                           EXPLANATION
  4 32 The inclusion of this explanation does not constitute agreement with
  4 33 the explanation's substance by the members of the general assembly.
  4 34    This bill relates to probate and the administration of small
  4 35 estates.
  5  1 The bill amends Code section 635.1 regarding the
  5  2 applicability of Code chapter 635 to estates opened or
  5  3 converted from administration under Code chapter 633 to include
  5  4 estates as large as $200,000, whereas currently the limit is
  5  5 $100,000.  This portion of the bill applies July 1, 2018,
  5  6 to estates opened under Code chapter 635 or converted from
  5  7 administration under Code chapter 633 on or after July 1, 2018.
  5  8    The bill amends Code section 635.7 (report and inventory
  5  9 ==== value and conversion).  The bill provides that if the
  5 10 personal representative files a statement to convert the estate
  5 11 administration to or from a small estate based on the gross
  5 12 value of probate assets subject to the jurisdiction of this
  5 13 state, the clerk shall make the conversion without an order of
  5 14 the court.  This portion of the bill applies July 1, 2018, to
  5 15 estates being probated under Code chapter 635 on or after July
  5 16 1, 2018.
  5 17    The bill amends Code section 635.8 (closing by sworn
  5 18 statement).  The bill requires the personal representative to
  5 19 file with the court a closing statement and proof of service
  5 20 thereof to all interested parties. The bill requires the
  5 21 following statements and informations to be included in the
  5 22 closing statement: notice to all interested parties that the
  5 23 parties have 30 days from the date of service of the closing
  5 24 statement in which to request a hearing by filing an objection
  5 25 with the court (replacing a reference to the notice procedures
  5 26 in Code section 633.40); a statement that all statutory
  5 27 requirements pertaining to claims have been complied with and a
  5 28 statement describing the resolution of all claims, including
  5 29 charges, and whether a lien continues to exist on any property
  5 30 as security for any claim.  The bill amends Code section
  5 31 635.8(2) by requiring service of the closing statement "to all
  5 32 interested parties as provided in Code section 633.40", prior
  5 33 to distribution of the estate.  The bill amends Code section
  5 34 635.8(3) to require the clerk to close the estate without order
  5 35 of the court.  Finally, as one of the two options to close the
  6  1 estate, Code section 635.8(3)(a) is amended to specify that
  6  2 receipts and other evidence of disbursement are required to be
  6  3 included as proof of asset distribution.  This portion of the
  6  4 bill applies July 1, 2018, to estates being probated under Code
  6  5 chapter 635 on or after July 1, 2018.
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