Bill Text: IA SSB1012 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to trusts, including requirements for certifications of trust and the general order of abatement.(See SF 173.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-01-27 - Committee report approving bill, renumbered as SF 173. [SSB1012 Detail]
Download: Iowa-2021-SSB1012-Introduced.html
Senate
Study
Bill
1012
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
ZAUN)
A
BILL
FOR
An
Act
relating
to
trusts,
including
requirements
for
1
certifications
of
trust
and
the
general
order
of
abatement.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
633A.4604,
subsection
2,
Code
2021,
is
1
amended
by
adding
the
following
new
paragraphs:
2
NEW
PARAGRAPH
.
0a.
State
the
names
of
all
the
currently
3
acting
trustees.
4
NEW
PARAGRAPH
.
00a.
If
there
is
more
than
one
currently
5
acting
trustee,
state
whether
the
trustees
may
act
individually
6
or
must
act
by
majority
decision
or
must
act
by
unanimous
7
decision.
8
Sec.
2.
Section
633A.4604,
subsection
2,
paragraph
c,
Code
9
2021,
is
amended
to
read
as
follows:
10
c.
Be
dated
and
certified
under
penalty
of
perjury
11
and
pursuant
to
the
laws
of
the
state
of
Iowa
that
the
12
certification
of
trust
is
true
and
correct
or
be
subscribed
and
13
sworn
to
under
penalty
of
perjury
before
a
notary
public
as
14
provided
in
chapter
9B
.
15
Sec.
3.
Section
633A.4703,
subsection
4,
Code
2021,
is
16
amended
to
read
as
follows:
17
4.
Notwithstanding
subsections
1,
2,
or
3
,
a
disposition
in
18
favor
of
the
settlor’s
surviving
spouse
who
does
not
take
an
19
elective
share
shall
not
be
abated
where
such
abatement
would
20
have
the
effect
of
increasing
the
amount
of
federal
estate
or
21
federal
gift
taxes
payable
by
a
person
or
an
entity
last
.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
relates
to
trusts,
including
requirements
for
a
26
certification
of
trust
and
abatement
of
a
disposition
in
favor
27
of
a
surviving
spouse
who
did
not
take
an
elective
share.
28
Current
law
prescribes
certain
requirements
to
be
included
29
in
certifications
of
trusts.
Under
the
bill,
certifications
30
of
trust
must
also
state
the
names
of
all
currently
acting
31
trustees
and,
if
there
is
more
than
one
trustee,
whether
the
32
trustees
may
act
individually,
or
must
act
as
a
majority
or
33
unanimously.
Under
current
law,
a
certification
of
trust
must
34
be
subscribed
and
sworn
to
under
penalty
of
perjury
before
35
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a
notary
public.
The
bill
provides
that,
in
lieu
of
this
1
procedure,
a
certification
of
trust
may
be
dated
and
certified
2
under
penalty
of
perjury.
3
Under
current
law,
abatement
occurs
when
the
equitable
4
assets
of
a
deceased
person
are
not
sufficient
to
satisfy
5
debts,
creditors,
or
taxes.
Code
section
633A.4703
provides
6
a
default
order
of
abatement
if
the
governing
instrument
is
7
silent.
Currently,
shares
allocated
to
residuary
beneficiaries
8
are
abated
first
on
a
pro
rata
basis,
followed
by
shares
9
defined
by
dollar
amount
on
a
pro
rata
basis,
and
lastly
the
10
shares
described
as
specific
items
of
property
are
abated
11
by
the
trustee
among
the
beneficiaries
as
equitably
as
12
circumstances
reasonably
allow.
A
disposition
in
favor
of
13
a
surviving
spouse
who
has
not
taken
an
elective
share
is
14
not
abated
when
the
abatement
would
result
in
increasing
the
15
amount
of
federal
taxes
payable
by
a
person
or
entity.
The
16
bill
provides
that
a
disposition
in
favor
of
the
surviving
17
spouse
who
did
not
take
an
elective
share
is
abated
last,
18
notwithstanding
the
current
order
of
abatement
which
remains
19
the
same,
and
strikes
the
prohibition
on
such
abatements
which
20
have
the
effect
of
increasing
the
amount
of
federal
taxes
21
payable
by
a
person
or
entity.
22
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