Bill Text: IA SSB3111 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to trusts, including optional notices to creditors when a will has been admitted to probate without administration and the trust is the beneficiary of the estate, trust accounting, specific powers of a trustee, and representation of holders of power and similar interests.(See SF 2316.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-02-16 - Committee report approving bill, renumbered as SF 2316. [SSB3111 Detail]
Download: Iowa-2021-SSB3111-Introduced.html
Senate
Study
Bill
3111
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
ZAUN)
A
BILL
FOR
An
Act
relating
to
trusts,
including
optional
notices
to
1
creditors
when
a
will
has
been
admitted
to
probate
without
2
administration
and
the
trust
is
the
beneficiary
of
the
3
estate,
trust
accounting,
specific
powers
of
a
trustee,
and
4
representation
of
holders
of
power
and
similar
interests.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
633A.3110,
Code
2022,
is
amended
by
1
adding
the
following
new
subsection:
2
NEW
SUBSECTION
.
12.
The
form
of
notice
set
forth
in
3
subsection
5
may
also
contain
the
following
optional
language
4
in
substantially
the
following
form
which,
if
included,
shall
5
serve
to
bar
any
claim
against
the
assets
of
the
decedent’s
6
estate
in
the
same
manner
and
subject
to
the
same
limitations
7
as
provided
in
section
633A.3109
with
respect
to
the
assets
of
8
the
trust:
9
Notice
is
further
given
that
the
will
of
the
decedent
has
10
been
admitted
to
probate
without
present
administration
in
the
11
[above-named]
court,
that
such
will
designates
the
trust
as
the
12
residual
beneficiary
of
the
estate,
that
all
persons
indebted
13
to
the
estate
of
the
decedent
are
requested
to
make
immediate
14
payment
to
the
undersigned
trustee,
and
that
any
person
or
15
entity
possessing
a
claim
against
the
estate
must
mail
proof
16
of
the
claim
to
the
trustee
at
the
address
listed
below
by
17
certified
mail,
return
receipt
requested,
by
the
later
to
occur
18
of
four
months
from
the
date
of
the
second
publication
of
this
19
notice
or
thirty
days
from
the
date
of
mailing
this
notice
if
20
required,
or
the
claim
shall
be
forever
barred,
unless
paid
or
21
otherwise
satisfied.
22
Sec.
2.
Section
633A.4213,
subsection
3,
Code
2022,
is
23
amended
to
read
as
follows:
24
3.
Except
as
provided
in
subsection
4
,
a
trustee
25
shall
provide
annually
to
each
adult
beneficiary
and
the
26
representative
of
any
minor
or
incompetent
beneficiary
who
27
may
receive
a
distribution
of
income
or
principal
during
the
28
accounting
time
period,
an
accounting,
unless
an
accounting
has
29
been
waived
specifically
for
that
accounting
time
period.
Upon
30
request,
the
accounting
shall
include
the
beginning
balance
and
31
the
ending
balance.
32
Sec.
3.
Section
633A.4402,
subsection
27,
unnumbered
33
paragraph
1,
Code
2022,
is
amended
to
read
as
follows:
34
With
respect
to
any
actual
or
potential
violation
of
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any
environmental
law
affecting
property
held
directly
or
1
indirectly
by
the
trustee,
a
trustee
shall
may
do
all
of
the
2
following:
3
Sec.
4.
Section
633A.6302,
Code
2022,
is
amended
by
adding
4
the
following
new
subsection:
5
NEW
SUBSECTION
.
3.
To
the
extent
there
is
no
conflict
of
6
interest
with
respect
to
the
fiduciary
matter,
the
person
or
7
persons
holding
a
limited
power
of
appointment
and
the
taker
or
8
takers
in
default
of
the
exercise
of
such
power
may
together
9
represent
and
bind
persons
whose
interests
are
dependent
on
the
10
affirmative
exercise
of
such
power
of
appointment
by
the
holder
11
or
holders
of
the
power.
12
Sec.
5.
Section
633A.6304,
Code
2022,
is
amended
to
read
as
13
follows:
14
633A.6304
Representation
by
holders
of
similar
interests.
15
Unless
otherwise
represented,
a
minor
,
or
an
incompetent,
16
unborn,
or
unascertained
person
,
or
a
remote
contingent
17
beneficiary
may
be
represented
by
and
bound
by
another
person
18
having
a
substantially
identical
interest
with
respect
to
the
19
fiduciary
matter
but
only
to
the
extent
that
the
person’s
20
interest
is
adequately
represented.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
relates
to
trusts,
including
optional
notices
to
25
creditors
when
a
will
has
been
admitted
to
probate
without
26
administration
and
the
trust
is
the
beneficiary
of
the
27
estate,
trust
accounting,
specific
powers
of
a
trustee,
and
28
representation
of
holders
of
power
and
similar
interests.
29
The
bill
provides
optional
language
that
may
be
included
in
30
a
notice
given
to
creditors,
heirs,
and
surviving
spouses
for
31
when
a
decedent’s
will
has
been
admitted
to
probate
without
32
administration.
If
such
notice
is
provided,
creditors
must
33
mail
proof
of
claims
to
the
trustee
within
four
months
or
else
34
be
barred
from
asserting
such
claims.
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The
bill
provides
that
annual
accountings
of
the
trust
1
provided
by
the
trustee
to
each
beneficiary
shall
include
the
2
beginning
and
ending
balances
of
the
trust
upon
request.
3
The
bill
changes
the
specific
powers
designated
to
a
trustee
4
relating
to
obligations
a
trustee
has
when
there
is
an
actual
5
or
potential
violation
of
an
environmental
law
on
a
property
6
held
by
a
trustee.
The
bill
makes
such
obligations
into
7
optional
actions
that
a
trustee
may
take.
8
The
bill
provides
for
holders
of
a
limited
power
of
9
appointment
along
with
the
taker
in
default
of
the
appointment
10
power
to
jointly
represent
and
bind
a
person
whose
interest
is
11
dependent
upon
that
power
of
appointment.
12
The
bill
allows
first
order
remainder
beneficiaries
to
13
represent
a
remote
contingent
beneficiary
in
addition
to
a
14
minor
or
an
incompetent,
unborn,
or
unascertained
person.
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