Bill Text: IA SF2232 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act relating to the Iowa trust code, including the creation of directed trusts, the transfer of trust assets into other trusts, and requirements related to notices to beneficiaries. (Formerly SSB 3036.) Effective date: 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-06-25 - Signed by Governor. S.J. 863. [SF2232 Detail]
Download: Iowa-2019-SF2232-Enrolled.html
Senate
File
2232
-
Enrolled
Senate
File
2232
AN
ACT
RELATING
TO
THE
IOWA
TRUST
CODE,
INCLUDING
THE
CREATION
OF
DIRECTED
TRUSTS,
THE
TRANSFER
OF
TRUST
ASSETS
INTO
OTHER
TRUSTS,
AND
REQUIREMENTS
RELATED
TO
NOTICES
TO
BENEFICIARIES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
633A.1102,
Code
2020,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
6A.
“Distribution
trust
director”
means
any
person
given
authority
by
an
instrument
to
exercise
all
or
any
portion
of
the
powers
set
forth
in
section
633A.4810.
Except
Senate
File
2232,
p.
2
as
provided
in
the
trust
instrument,
the
distribution
trust
director
shall
have
the
same
fiduciary
duty
and
liability
in
the
exercise
or
nonexercise
of
such
powers
as
the
trustee
would
in
the
absence
of
such
directory
powers.
NEW
SUBSECTION
.
6B.
“Excluded
fiduciary”
means
any
fiduciary
excluded
from
exercising
certain
powers
under
an
instrument
which
powers
may
be
exercised
by
the
settlor,
trust
director,
trust
protector,
or
other
persons
designated
in
the
instrument.
NEW
SUBSECTION
.
10A.
“Investment
trust
director”
means
any
person
given
authority
by
an
instrument
to
exercise
all
or
any
portion
of
the
powers
set
forth
in
section
633A.4809.
Except
as
provided
in
the
trust
instrument,
the
investment
trust
director
shall
have
the
same
fiduciary
duty
and
liability
in
the
exercise
or
nonexercise
of
such
powers
as
the
trustee
would
in
the
absence
of
such
directory
powers.
NEW
SUBSECTION
.
19A.
“Trust
director”
means
either
an
investment
trust
director
or
a
distribution
trust
director.
NEW
SUBSECTION
.
19B.
“Trust
protector”
means
any
person
whose
appointment
as
protector
is
provided
for
in
the
instrument.
A
trust
protector
shall
not
be
considered
to
be
acting
in
a
fiduciary
capacity
except
to
the
extent
the
governing
instrument
provides
otherwise.
However,
a
trust
protector
shall
be
considered
to
be
acting
in
a
fiduciary
capacity
to
the
extent
that
the
trust
protector
exercises
the
authority
or
powers
of
a
trust
director.
Sec.
2.
Section
633A.1102,
subsection
7,
Code
2020,
is
amended
to
read
as
follows:
7.
“Fiduciary”
includes
a
personal
representative,
executor,
administrator,
guardian,
conservator,
and
trustee
,
trust
director,
and
any
other
person
designated
as
a
fiduciary
by
the
applicable
instrument
or
this
trust
code
.
Sec.
3.
Section
633A.4207,
subsection
2,
Code
2020,
is
amended
to
read
as
follows:
2.
If
In
addition
to
any
powers
granted
to
a
trustee,
the
terms
of
the
trust
may
confer
powers
upon
a
person
other
than
the
settlor
of
a
revocable
trust
power
to
direct
certain
actions
of
the
trustee,
the
trustee
shall
act
in
Senate
File
2232,
p.
3
accordance
with
an
exercise
of
the
power
unless
the
trustee
knows
the
attempted
exercise
violates
the
terms
of
the
trust
or
the
trustee
knows
that
the
person
holding
the
power
is
not
competent
directors
and
trust
protectors
as
set
forth
in
sections
633A.4801
through
633A.4810
.
A
person’s
status
as
a
trust
director
or
trust
protector
under
Iowa
law
shall
be
determined
on
the
basis
of
the
powers
granted
and
not
on
the
title
given
to
such
person
in
the
trust
instrument.
Sec.
4.
Section
633A.4207,
subsection
3,
Code
2020,
is
amended
by
striking
the
subsection.
Sec.
5.
Section
633A.4213,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
8.
Notwithstanding
anything
in
this
chapter
to
the
contrary,
if
a
trust
instrument,
or
a
trust
protector
authorized
by
the
trust
instrument,
designates
that
a
notice,
accounting,
or
report
may
be
delivered
to
the
settlor
or
to
a
designated
representative
on
behalf
of
a
beneficiary
prior
to
such
beneficiary’s
twenty-fifth
birthday,
then,
to
the
extent
there
is
no
conflict
of
interest
between
the
representative
and
the
beneficiary,
all
notices,
accountings,
and
reports
served
on
such
representative
with
respect
to
such
period
will
have
the
same
effect
as
if
such
beneficiary
had
been
served
directly.
Sec.
6.
NEW
SECTION
.
633A.4215
Distributions
in
further
trust.
1.
As
used
in
this
section:
a.
“First
trust”
means
a
trust
from
which
income
or
principal
is
transferred
into
the
second
trust.
b.
“Restricted
trustee”
means
a
trustee
of
the
first
trust
if
such
trustee
is
a
beneficiary
of
the
first
trust
or
if
such
trustee
has
the
power
to
change
the
trustees
of
the
first
trust
within
the
meaning
of
subsection
5.
c.
“Second
trust”
means
a
trust
into
which
the
income
or
principal
of
the
first
trust
has
been
transferred.
2.
Unless
the
terms
of
the
governing
instrument
expressly
provide
otherwise,
if
a
trustee
of
the
first
trust
has
discretion
under
the
terms
of
a
governing
instrument
to
make
a
distribution
of
income
or
principal
to
or
for
the
benefit
of
one
or
more
beneficiaries
of
the
first
trust,
whether
or
not
Senate
File
2232,
p.
4
restricted
by
any
standard,
then
the
trustee,
independently
or
with
court
approval,
may
appoint
part
or
all
of
the
income
or
principal
subject
to
the
trustee’s
discretion
in
favor
of
a
trustee
of
a
second
trust
under
a
governing
instrument
separate
from
the
governing
instrument
of
the
first
trust.
Before
exercising
the
trustee’s
discretion
to
appoint
and
distribute
assets
to
a
second
trust,
the
trustee
of
the
first
trust
shall
determine
whether
the
appointment
is
necessary
or
desirable
after
taking
into
account
the
purposes
of
the
first
trust,
the
terms
and
conditions
of
the
second
trust,
and
the
consequences
of
the
distribution.
In
addition,
the
following
apply
to
all
appointments
made
under
this
section:
a.
The
second
trust
may
only
have
as
beneficiaries
one
or
more
of
the
beneficiaries
of
the
first
trust
to
or
for
whom
a
discretionary
distribution
of
income
or
principal
may
be
made
from
the
first
trust,
or
to
or
for
whom
a
distribution
of
income
or
principal
may
be
made
in
the
future
from
the
first
trust
at
a
time
or
upon
the
happening
of
an
event
specified
under
the
first
trust.
b.
No
restricted
trustee
of
the
first
trust
may
exercise
such
authority
over
the
first
trust
to
the
extent
that
doing
so
could
have
any
of
the
following
effects:
(1)
Benefiting
the
restricted
trustee
as
a
beneficiary
of
the
first
trust,
unless
the
exercise
of
such
authority
is
limited
by
an
ascertainable
standard
based
on
or
related
to
health,
education,
maintenance,
or
support.
(2)
Removing
restrictions
on
discretionary
distributions
to
a
beneficiary
imposed
by
the
governing
instrument
under
which
the
first
trust
was
created,
except
that
a
provision
in
the
second
trust
which
limits
distributions
by
an
ascertainable
standard
based
on
or
related
to
the
health,
education,
maintenance,
or
support
of
any
such
beneficiary
is
permitted,
as
is
a
distribution
to
a
trust
established
pursuant
to
42
U.S.C.
§1396p(d)(4).
c.
No
restricted
trustee
of
the
first
trust
may
exercise
such
authority
over
the
first
trust
to
the
extent
that
doing
so
would
have
the
effect
of
increasing
the
distributions
that
can
be
made
from
the
second
trust
to
the
restricted
trustees
of
the
first
trust
or
to
a
beneficiary
who
may
change
the
trustees
Senate
File
2232,
p.
5
of
the
first
trust
within
the
meaning
of
subsection
5
compared
to
the
distributions
that
can
be
made
to
such
trustee
or
beneficiary,
as
the
case
may
be,
under
the
first
trust,
unless
the
exercise
of
such
authority
is
limited
by
an
ascertainable
standard
based
on
or
related
to
health,
education,
support,
or
maintenance
within
the
meaning
of
section
2041(b)(1)(A)
or
2514(c)(1)
of
the
Internal
Revenue
Code.
d.
The
provisions
of
paragraphs
“b”
and
“c”
only
apply
to
restrict
the
authority
of
a
trustee
if
either
a
trustee,
or
a
beneficiary
who
may
change
the
trustee,
is
a
United
States
citizen
or
domiciliary
under
the
Internal
Revenue
Code,
or
the
trust
owns
property
that
would
be
subject
to
United
States
estate
or
gift
taxes
if
owned
directly
by
such
a
person.
e.
In
the
case
of
any
trust
contributions
which
have
been
treated
as
gifts
qualifying
for
the
exclusion
from
gift
tax
described
in
section
2503(b)
of
the
Internal
Revenue
Code,
by
reason
of
the
application
of
section
2503(c)
of
the
Internal
Revenue
Code,
the
governing
instrument
for
the
second
trust
shall
provide
that
the
beneficiary’s
remainder
interest
shall
vest
no
later
than
the
date
upon
which
such
interest
would
have
vested
under
the
terms
of
the
governing
instrument
for
the
first
trust.
f.
The
exercise
of
such
authority
may
not
reduce
any
income
interest
of
any
income
beneficiary
of
any
of
the
following
trusts:
(1)
A
trust
for
which
a
marital
deduction
has
been
taken
for
federal
tax
purposes
under
section
2056
or
2523
of
the
Internal
Revenue
Code,
or
for
state
tax
purposes
under
any
comparable
provision
of
applicable
state
law.
(2)
A
charitable
remainder
trust
under
section
664
of
the
Internal
Revenue
Code.
(3)
A
grantor
retained
annuity
or
unitrust
trust
under
section
2702
of
the
Internal
Revenue
Code.
g.
The
exercise
of
such
authority
does
not
apply
to
trust
property
subject
to
a
presently
exercisable
power
of
withdrawal
held
by
a
trust
beneficiary
to
whom,
or
for
the
benefit
of
whom,
the
trustee
has
authority
to
make
distributions,
unless
after
the
exercise
of
such
authority,
the
beneficiary’s
power
of
withdrawal
is
unchanged
with
respect
to
the
trust
property.
Senate
File
2232,
p.
6
h.
The
exercise
of
such
authority
is
not
prohibited
by
a
provision
in
the
governing
instrument
that
prohibits
amendment
or
revocation
of
the
trust.
i.
Any
appointment
made
by
a
trustee
shall
be
considered
a
distribution
by
the
trustee
pursuant
to
the
trustee’s
distribution
powers
and
authority.
j.
Notwithstanding
the
foregoing
provisions
of
this
subsection,
the
governing
instrument
of
the
second
trust
may
grant
a
power
of
appointment
to
one
or
more
of
the
beneficiaries
of
the
second
trust
who
are
beneficiaries
of
the
first
trust.
The
power
of
appointment
may
include
the
power
to
appoint
trust
property
to
the
holder
of
the
power
of
appointment,
the
holder’s
creditors,
the
holder’s
estate,
the
creditors
of
the
holder’s
estate,
or
any
other
person,
whether
or
not
that
person
is
a
trust
beneficiary.
k.
A
permitted
exercise
of
the
trustee’s
discretion
over
the
entire
income
and
principal
of
the
first
trust
may
be
made
by
modifying
the
first
trust
without
an
actual
distribution
of
property,
in
which
case
the
second
trust
is
the
modified
first
trust.
A
modification
in
further
trust
pursuant
to
this
paragraph
shall
require
the
trustee
to
notify
all
beneficiaries
of
the
trust,
in
writing,
at
least
twenty
days
prior
to
the
effective
date
of
such
exercise,
but
shall
not
be
subject
to
the
limitations
of
part
2
of
subchapter
II
of
this
chapter.
l.
This
section
applies
to
any
trust
administered
under
the
laws
of
this
state,
including
a
trust
whose
governing
jurisdiction
is
transferred
to
this
state.
3.
Any
action
that
may
not
be
taken
by
a
trustee
of
the
first
trust
by
reason
of
the
restrictions
in
subsection
2,
paragraph
“b”
,
may
instead
be
taken
by
any
other
trustee
of
the
first
trust
who
is
not
so
restricted,
or,
if
none,
by
the
next
available
party
who
can
be
a
successor
trustee
and
who
is
not
so
restricted.
4.
The
second
trust
may
be
a
trust
created
or
administered
under
the
laws
of
any
jurisdiction,
within
or
without
the
United
States.
5.
For
the
purposes
of
subsections
1
and
2,
a
beneficiary
shall
be
considered
to
have
the
power
to
change
the
trustees
if
the
beneficiary
can,
alone
or
with
others,
name
such
Senate
File
2232,
p.
7
beneficiary
as
a
trustee
or
can
remove
a
trustee
and
replace
that
trustee
with
a
new
trustee
who
is
the
beneficiary
or
who
is
related
or
subordinate,
as
defined
in
section
672
of
the
Internal
Revenue
Code,
to
the
beneficiary.
6.
The
exercise
of
the
power
to
distribute
the
income
or
principal
of
the
trust
under
this
section
shall
be
by
an
instrument
in
writing,
signed
and
acknowledged
by
the
trustee,
and
filed
with
the
records
of
the
trust.
The
trustee
of
the
first
trust
may
notify
the
beneficiaries
of
the
first
trust,
in
writing,
prior
to
the
effective
date
of
the
trustee’s
exercise
of
the
power
under
this
section.
A
copy
of
the
exercise
of
this
authority
and
the
second
trust
agreement
shall
satisfy
this
notice
provision.
For
the
purposes
of
this
section,
the
term
“beneficiaries”
means
those
persons
who
would
be
entitled
to
notice
and
a
copy
of
the
first
trust
instrument
under
section
633A.4213.
7.
The
exercise
of
the
power
to
distribute
the
income
or
principal
of
the
trust
under
this
section
shall
be
considered
the
exercise
of
a
power
of
appointment
that
shall
not
be
exercised
in
favor
of
the
trustee,
the
trustee’s
creditors,
the
trustee’s
estate,
or
the
creditors
of
the
trustee’s
estate.
8.
The
power
under
this
section
may
not
be
exercised
to
suspend
the
power
to
alienate
trust
property
or
extend
the
first
trust
beyond
the
permissible
period
of
any
rule
against
perpetuities
applicable
to
the
first
trust.
Sec.
7.
NEW
SECTION
.
633A.4801
Governing
instrument
may
provide
trust
director
or
trust
protector
with
powers
and
immunities
of
trustee.
Any
governing
instrument
providing
for
a
trust
director
or
trust
protector
may
also
provide
such
trust
director
or
trust
protector
with
some,
none,
or
all
of
the
rights,
powers,
privileges,
benefits,
immunities,
or
authorities
available
to
a
trustee
under
the
law
of
this
state
or
under
the
governing
instrument.
Unless
the
governing
instrument
provides
otherwise,
a
trust
director
or
trust
protector
has
no
greater
liability
to
any
person
than
would
a
trustee
holding
or
benefiting
from
the
rights,
powers,
privileges,
benefits,
immunities,
or
authority
provided
or
allowed
by
the
governing
instrument
to
such
trust
director
or
trust
protector.
Senate
File
2232,
p.
8
Sec.
8.
NEW
SECTION
.
633A.4802
Liability
limits
of
excluded
fiduciary.
1.
An
excluded
fiduciary
is
not
liable,
either
individually
or
as
a
fiduciary,
for
any
of
the
following:
a.
Any
loss
that
results
from
compliance
with
a
direction
of
the
trust
director,
including
any
loss
from
the
trust
director
breaching
fiduciary
responsibilities
or
acting
beyond
the
trust
director’s
scope
of
authority.
b.
Any
loss
that
results
from
a
failure
to
take
any
action
proposed
by
an
excluded
fiduciary
that
requires
prior
authorization
of
the
trust
director
if
that
excluded
fiduciary
timely
sought
but
failed
to
obtain
that
authorization.
c.
Any
loss
that
results
from
any
action
or
inaction
of
the
excluded
fiduciary,
except
for
gross
negligence
or
willful
misconduct,
when
the
excluded
fiduciary
is
required,
pursuant
to
the
trust
agreement
or
any
other
reason,
to
assume
the
role
of
trust
director
or
trust
protector.
2.
An
excluded
fiduciary
is
relieved
of
any
obligation
to
review
or
evaluate
any
direction
from
a
trust
director
or
to
perform
investment
or
suitability
reviews,
inquiries,
or
investigations
or
to
make
recommendations
or
evaluations
with
respect
to
any
investments
to
the
extent
the
trust
director
had
authority
to
direct
the
acquisition,
disposition,
or
retention
of
the
investment.
If
the
excluded
fiduciary
offers
recommendations
or
evaluations
with
respect
to
any
investments
to
the
trust
director,
trust
protector,
or
any
investment
advisor
selected
by
the
investment
trust
director,
such
action
may
not
be
deemed
to
constitute
an
undertaking
by
the
excluded
fiduciary
to
monitor
or
otherwise
participate
in
actions
within
the
scope
of
the
trust
director’s
authority
or
to
constitute
any
duty
to
do
so.
3.
An
excluded
fiduciary
is
relieved
of
any
duty
to
communicate
with,
warn,
or
apprise
any
beneficiary
or
third
party
concerning
instances
in
which
the
excluded
fiduciary
may
have
exercised
the
excluded
fiduciary’s
own
discretion
in
a
manner
different
from
the
manner
directed
by
the
trust
director
or
trust
protector.
4.
Absent
contrary
provisions
in
the
governing
instrument,
the
actions
of
the
excluded
fiduciary
pertaining
to
matters
Senate
File
2232,
p.
9
within
the
scope
of
authority
of
the
trust
director
or
trust
protector
shall
be
deemed
to
be
administrative
actions
taken
by
the
excluded
fiduciary
solely
to
allow
the
excluded
fiduciary
to
perform
those
duties
assigned
to
the
excluded
fiduciary
under
the
governing
instrument,
and
such
administrative
actions
shall
not
be
deemed
to
constitute
an
undertaking
by
the
excluded
fiduciary
to
monitor,
participate,
or
otherwise
take
on
any
fiduciary
responsibility
for
actions
within
the
scope
of
authority
of
the
trust
director
or
trust
protector.
For
purposes
of
this
subsection,
“administrative
actions”
shall
include
communications
with
the
trust
director
or
others
and
carrying
out,
recording,
or
reporting
actions
taken
at
the
trust
director’s
direction.
5.
In
an
action
against
an
excluded
fiduciary
pursuant
to
the
provisions
of
this
section,
the
burden
to
prove
the
matter
by
clear
and
convincing
evidence
is
on
the
person
seeking
to
hold
the
excluded
fiduciary
liable.
Sec.
9.
NEW
SECTION
.
633A.4803
Death
of
settlor.
An
excluded
fiduciary
may
continue
to
follow
the
direction
of
the
trust
director
upon
the
incapacity
or
death
of
the
settlor
if
the
instrument
so
allows.
Sec.
10.
NEW
SECTION
.
633A.4804
Excluded
fiduciary’s
liability
for
loss
if
trust
protector
appointed.
If
an
instrument
appoints
a
trust
protector,
the
excluded
fiduciary
is
not
liable
for
any
loss
resulting
from
any
action
taken
upon
the
trust
protector’s
direction.
Sec.
11.
NEW
SECTION
.
633A.4805
Powers
of
trust
protector.
1.
The
powers
of
a
trust
protector
are
as
provided
in
the
governing
instrument
and
may
be
exercised
or
not
exercised,
in
the
best
interests
of
the
beneficiaries
as
a
class,
in
the
sole
and
absolute
discretion
of
the
trust
protector
and
are
binding
on
all
other
persons.
The
powers
may
include
the
following:
a.
Modify
or
amend
the
trust
instrument
to
achieve
favorable
tax
status
or
respond
to
changes
in
the
Internal
Revenue
Code,
state
law,
or
the
rulings
and
regulations
thereunder.
b.
Increase
or
decrease
the
interests
of
any
beneficiaries
to
the
trust.
c.
Modify
the
terms
of
any
power
of
appointment
granted
by
the
trust.
However,
a
modification
or
amendment
shall
Senate
File
2232,
p.
10
not
grant
a
beneficial
interest
to
any
individual
or
class
of
individuals
not
specifically
provided
for
under
the
trust
instrument.
d.
Remove
and
appoint
a
trustee,
trust
director,
or
other
person
designated
in
the
governing
trust
instrument.
e.
Terminate
the
trust.
f.
Veto
or
direct
trust
distributions.
g.
Change
situs
of
the
trust.
h.
Change
the
governing
law
of
the
trust.
i.
Appoint
a
successor
trust
protector.
j.
Interpret
terms
of
the
trust
instrument
at
the
request
of
the
trustee.
k.
Advise
the
trustee
on
matters
concerning
a
beneficiary.
l.
Amend
or
modify
the
trust
instrument
to
take
advantage
of
laws
governing
restraints
on
alienation,
distribution
of
trust
property,
or
the
administration
of
the
trust.
m.
Provide
direction
regarding
notification
of
qualified
beneficiaries
pursuant
to
section
633A.4213.
n.
Add
to
the
trust
an
individual
beneficiary
or
beneficiaries
from
a
class
of
individuals
identified
in
the
governing
instrument.
o.
Add
to
the
trust
a
charitable
beneficiary
or
beneficiaries
from
a
class
of
charities
identified
in
the
trust
instrument.
p.
Provide
other
powers
in
the
governing
instrument.
2.
The
powers
referenced
in
subsection
1,
paragraphs
“e”
,
“f”
,
and
“l”
,
may
be
granted
notwithstanding
the
provisions
of
sections
633A.2201
through
633A.2208.
Sec.
12.
NEW
SECTION
.
633A.4806
Submission
to
court
jurisdiction
——
effect
on
trust
director
or
trust
protector.
By
accepting
an
appointment
to
serve
as
a
trust
director
or
trust
protector
of
a
trust
that
is
subject
to
the
laws
of
this
state,
the
trust
director
or
the
trust
protector
submits
to
the
jurisdiction
of
the
courts
of
Iowa
even
if
investment
advisory
agreements
or
other
related
agreements
provide
otherwise.
The
trust
director
or
trust
protector
may
be
made
a
party
to
any
action
or
proceeding
if
a
decision
or
action
of
the
trust
director
or
trust
protector
affects
a
trust
that
is
subject
to
the
laws
of
this
state.
Senate
File
2232,
p.
11
Sec.
13.
NEW
SECTION
.
633A.4807
Powers
of
trust
protector
incorporated
by
reference
in
will
or
trust
instrument.
Any
of
the
powers
enumerated
in
section
633A.4805,
as
they
exist
at
the
time
of
the
signing
of
a
will
by
a
testator
or
at
the
time
of
the
signing
of
a
trust
instrument
by
a
settlor,
may
be,
by
appropriate
reference
made
thereto,
incorporated
in
whole
or
in
part
in
such
will
or
trust
instrument,
by
a
clearly
expressed
intention
of
a
testator
of
a
will
or
settlor
of
a
trust
instrument.
Sec.
14.
NEW
SECTION
.
633A.4808
Investment
trust
director
or
distribution
trust
director
provided
for
in
trust
instrument.
A
trust
instrument
governed
by
the
laws
of
this
state
may
provide
for
a
person
to
act
as
an
investment
trust
director
or
a
distribution
trust
director
with
regard
to
investment
decisions
or
discretionary
distributions,
respectively.
Unless
otherwise
provided
by
the
terms
of
the
governing
instrument,
a
person
may
simultaneously
serve
as
a
trust
director
and
a
trust
protector.
Sec.
15.
NEW
SECTION
.
633A.4809
Powers
of
investment
trust
director.
The
powers
of
an
investment
trust
director
shall
be
provided
in
the
trust
instrument
and
may
be
exercised
or
not
exercised,
in
the
best
interests
of
the
beneficiaries
as
a
class,
in
the
sole
and
absolute
discretion
of
the
investment
trust
director
and
are
binding
on
any
other
person
and
any
other
interested
party,
fiduciary,
and
excluded
fiduciary.
Unless
the
terms
of
the
governing
instrument
provide
otherwise,
the
investment
trust
director
has
the
power
to
do
all
of
the
following:
1.
Direct
the
trustee
with
respect
to
the
retention,
purchase,
sale,
exchange,
tender,
or
other
transaction
affecting
the
ownership
thereof
or
rights
therein
of
trust
investments.
These
powers
include
the
pledge
or
encumbrance
of
trust
property,
lending
of
trust
assets,
either
secured
or
unsecured,
at
terms
defined
by
the
investment
trust
director,
to
any
party
including
beneficiaries
of
the
trust,
and
the
investment
and
reinvestment
of
principal
and
income
of
the
trust.
2.
Vote
proxies
for
securities
held
in
trust.
3.
Select
one
or
more
investment
directors,
managers,
or
Senate
File
2232,
p.
12
counselors,
including
the
trustee,
and
delegate
to
them
any
of
the
investment
trust
director’s
powers.
4.
Direct
the
trustee
with
respect
to
any
additional
powers
over
investment
and
management
of
trust
assets
provided
in
the
governing
instrument.
5.
Direct
the
trustee
as
to
the
value
of
nonpublicly
traded
trust
investments.
6.
Direct
the
trustee
as
to
any
investment
or
management
power
referenced
in
sections
633A.4401
and
633A.4402.
Sec.
16.
NEW
SECTION
.
633A.4810
Powers
of
distribution
trust
director.
The
powers
of
a
distribution
trust
director
over
any
discretionary
distributions
of
income
or
principal,
including
distributions
pursuant
to
an
ascertainable
standard
or
other
criteria
and
appointments
pursuant
to
section
633A.4215,
shall
be
provided
in
the
trust
instrument
and
may
be
exercised
or
not
exercised,
in
the
best
interests
of
the
beneficiaries
as
a
class,
in
the
sole
and
absolute
discretion
of
the
distribution
trust
director
and
are
binding
on
any
other
person
and
any
other
interested
party,
fiduciary,
and
excluded
fiduciary.
Unless
the
terms
of
the
document
provide
otherwise,
the
distribution
trust
director
shall
direct
the
trustee
with
regard
to
all
discretionary
distributions
to
beneficiaries
and
may
direct
appointments
pursuant
to
section
633A.4215.
The
distribution
trust
director
may
also
provide
direction
regarding
notification
of
qualified
beneficiaries
pursuant
to
section
633A.4213.
Sec.
17.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
general
assembly
that
the
provisions
of
this
Act
enacting
section
433A.4215
is
declaratory
of
the
common
law
of
this
state
permitting
distributions
in
further
trust
and
shall
be
liberally
construed
to
effectuate
the
intent
to
maintain
such
common
law
authority.
Section
433A.4215,
as
enacted
by
this
Act,
shall
not
be
construed
to
abridge
the
right
of
any
trustee
who
has
power
to
distribute
income
or
principal
in
further
trust
which
arises
under
the
terms
of
the
first
trust
or
any
statute
or
common
law
applicable
to
such
trust.
Sec.
18.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
may
organize
the
provisions
of
this
Act
enacting
sections
633A.4801
Senate
File
2232,
p.
13
through
633A.4810
as
a
new
part
under
subchapter
IV
in
chapter
633A.
______________________________
CHARLES
SCHNEIDER
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
2232,
Eighty-eighth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2020
______________________________
KIM
REYNOLDS
Governor