Iowa-2017-HF2128-Introduced
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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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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