Bill Text: IA HF609 | 2011-2012 | 84th General Assembly | Enrolled

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Bill Title: A bill for an act relating to trusts and estates including the administration of small estates, and certain state inheritance tax provisions, and including applicability provisions. Effective 7-1-12.

Spectrum: Committee Bill

Status: (Passed) 2012-05-25 - Signed by Governor. H.J. 962. [HF609 Detail]

Download: Iowa-2011-HF609-Enrolled.html

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House File 609
AN ACT
RELATING TO TRUSTS AND ESTATES INCLUDING THE ADMINISTRATION OF
SMALL ESTATES, AND CERTAIN STATE INHERITANCE TAX PROVISIONS,
AND INCLUDING APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 422.7, subsection 4, Code Supplement
2011, is amended by striking the subsection.
Sec. 2. Section 450.4, subsections 7 and 8, Code 2011, are
amended by striking the subsections.
Sec. 3. Section 633.237, subsections 1, 2, and 4, Code 2011,
are amended to read as follows:
1. Following the appointment of a personal representative
of the estate of the decedent, who is not the spouse, the
personal representative shall cause to be served a written
notice upon the surviving spouse pursuant to section 633.40,
subsection 5 , notifying the surviving spouse that unless,
within four months after service of the notice, the spouse
files an election in writing with the clerk of court electing
the share as set forth in section 633.236 and sections 633.238
through 633.246 , the spouse shall be deemed to take under
the will or to receive the intestate share. If, within the
four-month period following service of the notice, an affidavit
is filed setting forth that the surviving spouse is incapable
of making the election and does not have a conservator, the
personal representative shall make application to the court for
an order pursuant to section 633.244 .
2. Following the death of a settlor of a revocable trust,
the trustee of such revocable trust who is not the spouse
shall cause to be served a written notice upon the surviving
spouse pursuant to section 633.40, subsection 5 , notifying

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the surviving spouse that unless, within four months after
service of the notice, the spouse files an election with the
trustee electing the share as set forth in section 633.236 and
sections 633.238 through 633.246 , the spouse shall be deemed
to take under the terms of the revocable trust. If, within the
four-month period following service of the notice, an affidavit
is filed setting forth that the surviving spouse is incapable
of making the election and does not have a conservator, the
trustee shall make application to the court for an order
pursuant to section 633.244 .
4. The notice provisions under subsections 1 and 2 are not
applicable if the surviving spouse is a personal representative
of the estate or a trustee of a revocable trust or if the
surviving spouse or the spouse’s conservator files, at any
time, an election to take under the will, receive the intestate
share, or take under the revocable trust. If the surviving
spouse fails to file an election under this section within four
months of the decedent’s death date notice is served , it shall
be conclusively presumed that the surviving spouse elects to
take under the will, receive the intestate share, or take under
the revocable trust.
Sec. 4. Section 633.246, Code 2011, is amended to read as
follows:
633.246 Election not subject to change.
1. An election by or on behalf of a surviving spouse to
take the share provided in section 633.211 , 633.212 , 633.236 ,
633.238 , 633.240 , or 633.244 shall be binding and shall not be
subject to change except for such causes as would justify an
equitable decree for the rescission of a deed.
2. An affirmative election to take under the will, receive
the intestate share, or take under the revocable trust shall be
irrevocable when filed as provided in section 633.237.
Sec. 5. Section 633.350, Code 2011, is amended to read as
follows:
633.350 Title to decedent’s estate —— when property passes ——
possession and control thereof —— liability for administration
expenses, debts, and family allowance.
Except as otherwise provided in this probate code, when
a person dies, the title to the person’s property, real and
personal, passes to the person to whom it is devised by the
person’s last will, or, in the absence of such disposition,
to the persons who succeed to the estate as provided in this
probate code, but all of the property shall be subject to

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the possession of the personal representative as provided
in section 633.351 and to the control of the court for the
purposes of administration, sale, or other disposition under
the provisions of law, and such property, except homestead and
other exempt property, shall be chargeable with the payment
of debts and charges against of the estate. There shall be
no priority as between real and personal property, except as
provided in this probate code or by the will of the decedent.
If real property is titled at any time in a decedent’s estate,
such property shall be treated as titled in the name of the
personal representative of the estate.
Sec. 6. Section 633.351, Code 2011, is amended to read as
follows:
633.351 Possession of real and personal property.
If there is no distributee of the real estate present and
competent to take possession, or if there is a lease of such
real estate outstanding, or if the distributees present and
competent consent thereto During the period of administration ,
the personal representative shall take possession of such the
decedent’s real estate, except the homestead and other property
exempt to the surviving spouse. Every personal representative
shall take possession of all the personal property of the
decedent, except the property exempt to the surviving spouse.
The personal representative may maintain an action for the
possession of such real and personal property or to determine
the title to any property of the decedent. Until property is
distributed, the personal representative shall take reasonable
steps to safeguard such property, pay any expenses related
to such property, and collect any income generated by such
property. Unless otherwise provided by the decedent’s will,
all such expenses shall be paid from the residuary estate and
all such income shall be considered a part of the residuary
estate.
Sec. 7. Section 633.352, Code 2011, is amended to read as
follows:
633.352 Collection of rents and payment of taxes and charges.
Unless otherwise provided by the will, the personal
representative shall allocate and distribute provisions of
chapter 637 that conflict with this part 3 shall not apply to
the allocation and distribution of estate income of an estate
in accordance with chapter 637 .
Sec. 8. Section 633.355, Code 2011, is amended to read as
follows:

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633.355 Delivery of specific devise after nine twelve months.
Unless the court, for cause shown, determines that the
possession of the personal representative shall continue for a
longer period, the personal representative shall deliver all
specifically devised property to the devisees entitled thereto
after the expiration of nine twelve months from the date of
appointment of the personal representative. This section shall
not preclude the court from directing that such delivery be
made before such period has expired, nor shall the personal
representative be prevented from sooner settling the estate and
delivering such property at an earlier time .
Sec. 9. Section 633.374, Code 2011, is amended to read as
follows:
633.374 Allowance to surviving spouse.
1. If the personal representative of the estate is not
the decedent’s spouse, the The personal representative of the
estate shall cause written notice concerning support to be
mailed mail to the surviving spouse pursuant to section 633.40,
subsection 5 , a written notice regarding the right to request
a spousal allowance . The notice shall inform the surviving
spouse of the surviving spouse’s right to apply, submit an
application to the court within four months of service of the
notice, for support for a period of twelve months following
the death of the decedent, and for support of the decedent’s
dependents who reside with the spouse for the same period of
time.
2. The court shall, upon application, set off and order
paid to the surviving spouse, as part of the costs of
administration, sufficient of the decedent’s property including
assets held in a revocable trust of which the decedent is the
settlor to the extent that estate assets are not sufficient as
it deems reasonable for the proper support of the surviving
spouse for the period of twelve months following the death of
the decedent. If the application is not made by the personal
representative, notice Notice of hearing upon the application
shall be given to the surviving spouse, personal representative
if the application is not made by the personal representative,
trustee of any revocable trust of which the decedent is the
settlor, and all other interested persons . The court shall
take into consideration the station in life of the surviving
spouse , and the assets and condition of the estate and any
revocable trust of which the decedent is the settlor, the
nonprobate assets received by the surviving spouse by reason of

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the death of the decedent, and the income and other resources
of the surviving spouse . If the trustee of a revocable
trust of which the decedent was a settlor has previously made
payments under section 633A.3114 to the spouse, the court shall
reduce the award by the amount of such payments. The allowance
shall also include such additional amount as the court deems
reasonable for the proper support, during such period, of
dependents of the decedent who reside with the surviving
spouse. Such allowance to the surviving spouse shall not abate
upon the death or remarriage of such spouse. If an application
for support has not been filed within four months following
service of the notice by or on behalf of the surviving
spouse and the dependents of the decedent who reside with the
surviving spouse, the surviving spouse and the dependents of
the decedent shall be deemed to have waived the right to apply
for support during the administration of the estate.
3. A surviving spouse who qualifies for a support allowance
under this section may waive the right to such allowance for
the surviving spouse and for the dependents of the decedent
who reside with the surviving spouse by filing an affidavit
acknowledging receipt of notice and irrevocably waiving the
right to support under this section.
Sec. 10. Section 633.375, Code 2011, is amended to read as
follows:
633.375 Review of allowance to surviving spouse.
The court may, upon the petition of the spouse, or other
person interested any interested person , and after hearing
pursuant to notice to all interested parties, review such the
allowance and increase or decrease the same amount and make
such other orders as it may deem proper .
Sec. 11. Section 633.376, Code 2011, is amended to read as
follows:
633.376 Allowance to children who do not reside with
surviving spouse.
1. The court may also make an allowance under the same terms
and conditions as provided in section 633.374 of an amount the
court deems reasonable in light of the assets and condition of
the estate, to provide for proper support during the period of
twelve months following the decedent’s death to a child of the
decedent who does not reside with the surviving spouse and is
any of the following:
a. less Less than eighteen years of age .
b. or who is between Between the ages of eighteen and

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twenty-two years who is any of the following:
(1) regularly Regularly attending an accredited school in
pursuance of a course of study leading to a high school diploma
or its equivalent , .
(2) or regularly Regularly attending a course of
vocational-technical training either as a part of a regular
school program or under special arrangements adapted to the
individual person’s needs ; .
(3) or is Is , in good faith, a full-time student in a
college, university, or community college ; .
(4) or has Has been accepted for admission to a college,
university, or community college and the next regular term has
not yet begun ; .
c. or Is a child of any age who is dependent because of
physical or mental disability ; who does not reside with the
surviving spouse, of an amount it deems reasonable in the light
of the assets and condition of the estate, to provide for the
child’s proper support during the period of twelve months .
2. The estate’s personal representative shall cause
written notice to be mailed mail pursuant to section 633.40,
subsection 5 , to the legal guardian of each child qualified
under subsection 1 and to each child or the guardian ad litem
for such child if necessary, who has no legal guardian , a
written notice regarding the right to request an allowance .
The notice shall inform the child and the child’s guardian,
if applicable, of the right to apply submit an application to
the court , within four months after service of the notice, for
support for a period of twelve months following the decedent’s
death. If an application for support has not been filed within
four months after service of the notice by or on behalf of the
child qualifying for support under subsection 1 , the child
shall be deemed to have waived the right to support under this
section . A child who qualifies for support under this section
or the child’s guardian ad litem may waive the child’s right
to such support by filing an affidavit acknowledging receipt
of notice and irrevocably waiving the child’s right to support
under this section .
Sec. 12. Section 633.377, Code 2011, is amended to read as
follows:
633.377 Review of allowance to minor children.
The court may, upon the petition of any interested person,
and after hearing pursuant to notice to all interested parties,
review the allowance made to the minor children who do not

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reside with the surviving spouse and may increase or decrease
the same amount and make such other orders as it may deem
proper.
Sec. 13. Section 633.471, Code 2011, is amended to read as
follows:
633.471 Right of retainer.
When a distributee of an estate is indebted to the estate,
or if a distributee takes as an heir of a deceased devisee
indebted to the estate, the amount of such indebtedness, if
due, or the present worth of the indebtedness, if not due,
shall be treated as a setoff and retained by the personal
representative out of any testate or intestate property,
real or personal, of the estate to which such distributee is
entitled. In intestate estates, the personal representative
shall have the same right of setoff and retainer against an
heir whose ancestor was indebted to the estate. The right of
setoff and retainer shall be prior and superior to the rights
of judgment creditors, heirs or assigns of such distributee and
shall not be barred by the statute of limitations, nor by a
discharge in bankruptcy .
Sec. 14. Section 633.561, Code 2011, is amended by adding
the following new subsection:
NEW SUBSECTION . 7. If the court determines upon application
that it is appropriate or necessary, the court may order that
the attorney appointed pursuant to this section be given copies
of and access to the proposed ward’s health information by
describing with reasonable specificity the health information
to be disclosed or accessed, for the purpose of fulfilling the
attorney’s responsibilities pursuant to this section.
Sec. 15. Section 633A.2203, Code 2011, is amended by adding
the following new subsection:
NEW SUBSECTION . 5. A spendthrift provision, or a provision
giving the trustee discretion to distribute income or principal
to a beneficiary or among beneficiaries, in the terms of the
trust is presumed to constitute a material purpose of the
trust.
Sec. 16. Section 633A.3102, subsection 5, Code 2011, is
amended to read as follows:
5. The settlor’s powers with respect to revocation or
modification may be exercised by an agent under a power of
attorney only and to the extent the power of attorney expressly
so authorizes. if all of the following apply:
a. The trust instrument expressly authorizes an agent under

House File 609, p. 8
a power of attorney to exercise such powers.
b. The power of attorney expressly authorizes an agent
acting under the power of attorney to exercise such powers.
Sec. 17. Section 633A.3104, subsection 2, Code 2011, is
amended by striking the subsection and inserting in lieu
thereof the following:
2. Following the death of a settlor, if the settlor’s estate
is inadequate to satisfy the debts of the settlor and the
charges of the settlor’s estate, the property of a revocable
trust, to the extent of the value of the property over which
the settlor had a power of revocation, is subject to all of the
following:
a. The charges of the settlor’s estate.
b. The debts of the settlor unless barred as provided in
section 633A.3109.
Sec. 18. Section 633A.3104, Code 2011, is amended by adding
the following new subsection:
NEW SUBSECTION . 2A. The personal representative of the
settlor’s estate shall submit a statement to the trustee
within the period for filing claims against the trust of the
amount by which the assets of the estate are insufficient
to pay the debts and charges. Subject to the provisions of
section 633A.3111, the trustee shall remit to the personal
representative the amount needed to pay the charges and shall
pay the debts directly to the creditors unless the trustee and
personal representative agree to a different manner of payment.
Sec. 19. Section 633A.3108, Code 2011, is amended by
striking the section and inserting in lieu thereof the
following:
633A.3108 Limitation on contest of revocable trust.
Unless previously barred by adjudication, consent, or other
limitation, if notice is published or given as provided in
section 633A.3110 within one year of the settlor’s death, a
proceeding to contest the validity of a revocable trust must be
brought within the period specified in that notice. If notice
is not published or given within that period, a proceeding to
contest the validity of a trust must be brought no later than
one year following the death of the settlor.
Sec. 20. Section 633A.3109, Code 2011, is amended by
striking the section and inserting in lieu thereof the
following:
633A.3109 Limitation on creditor rights against revocable
trust assets after settlor’s death.

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1. If notice is published or given as provided in section
633A.3110 within one year of the settlor’s death, any claim
against the trust assets will be forever barred unless the
creditor files a claim as provided for and within the period
specified in the notice.
2. If notice is not published or given, a creditor of
a deceased settlor of a revocable trust must bring suit to
enforce its claim against the assets of the decedent’s trust
within one year of the decedent’s death or be forever barred
from collecting against the trust assets. The one-year
limitation period shall not be extended by the commencement of
probate administration for the settlor.
3. The notice under sections 633.230 and 633.304 in probate
of the settlor’s estate does not affect a creditor’s claim
under this section.
Sec. 21. Section 633A.3110, Code 2011, is amended by
striking the section and inserting in lieu thereof the
following:
633A.3110 Notice to creditors, heirs, and spouse.
1. As used in this section, “heir” means only such person
who would, in an intestate estate, be entitled to a share under
section 633.219.
2. The trustee may give notice as described herein to
creditors, heirs, and the surviving spouse of the settlor for
the purpose of establishing their rights to contest the trust
and to file claims against the trust assets.
a. No later than the end of the one-year period beginning
with the settlor’s date of death, the trustee may publish a
notice once each week for two consecutive weeks in a daily or
weekly newspaper of general circulation published in the county
in which the settlor was a resident at the time of death. If
the settlor was not a resident of Iowa, but the principal place
of administration is in Iowa, the trustee shall publish notice
in the county that is the principal place of administration
pursuant to section 633A.6102.
b. If notice is published pursuant to paragraph “a” , the
trustee shall also give notice by ordinary mail within one year
of the settlor’s death to the surviving spouse and the heirs of
the decedent whose identities are reasonably ascertainable, at
such person’s last known address.
c. If notice is published pursuant to paragraph “a” , the
trustee shall also give notice to creditors of the settlor who
are known or reasonably ascertainable within the period for

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filing claims specified in the published notice and who the
trustee believes own or possess a claim, which will not or may
not be paid or otherwise satisfied during the administration of
the trust, by ordinary mail to each person at the person’s last
known address.
d. The notices described in this subsection shall, if given,
include notification of the settlor’s death, and the fact that
any action to contest the validity of the trust must be brought
within the later to occur of four months from the date of the
second publication of the notice made pursuant to paragraph “a”
or thirty days from the date of mailing of the notice pursuant
to paragraph “b” , and that any claim against the trust assets
will be forever barred unless proof of a creditor’s claim
is mailed to the trustee by certified mail, return receipt
requested, within the later to occur of four months from the
second publication of notice pursuant to paragraph “a” or
thirty days from the date of mailing the notice pursuant to
paragraph “b” , if required. A person who is not entitled to
receive a mailed notice or who does not make a claim within the
appropriate period is forever barred from asserting any claim
against the trust or the trust assets.
3. If notice is published pursuant to paragraph “a” , claims
of creditors that are discovered or which become reasonably
ascertainable after the end of the notice period are barred.
4. If notice is not published and given as provided in
this section, the right to challenge the trust and file claims
against the trust assets are limited as provided in sections
633A.3108 and 633A.3109.
5. The notice described in subsection 2 shall be
substantially in the following form:
To all persons regarding ............., deceased, who died
on or about ......, (year) ...... You are hereby notified that
............... is the trustee of the ................ Trust.
Any action to contest the validity of the trust must be
brought in the District Court of .... County, Iowa, within
the later to occur of four months from the date of second
publication of this notice, or thirty days from the date of
mailing this notice to all heirs of the decedent settlor
and the spouse of the decedent settlor whose identities are
reasonably ascertainable. Any suit not filed within this
period shall be forever barred.
Notice is further given that any person or entity possessing
a claim against the trust must mail proof of the claim to the

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trustee at the address listed below via certified mail, return
receipt requested, by the later to occur of four months from
the second publication of this notice or thirty days from the
date of mailing this notice if required, or the claim shall be
forever barred, unless paid or otherwise satisfied.
Dated this ...... day of ......, (year)....
..................................... Trust
...........................
Trustee
Address: ......................
................................
Date of second publication ... day of ......, (year) ....
6. The proof of claim must be in writing stating the party’s
name and address and describing the nature and amount of the
claim, if ascertainable, and accompanied by an affidavit of the
party or a representative of the party verifying the amount
that is due, or when the amount will become due, that no
payments have been made on the claim that are not credited, and
that no offsets to the claim exist.
7. At any time after receipt by the trustee of a proof of
claim, the trustee may give the party submitting the claim a
written notice of disallowance of the claim. The notice shall
be given by certified mail, return receipt requested, addressed
to the party at the address stated in the claim, and to the
attorney of record of the party submitting the claim. Such
notice of disallowance shall advise the party submitting the
claim that the claim has been disallowed and will be forever
barred unless suit is filed against the trustee to enforce
the claim within thirty days of the date of the mailing of
the notice of disallowance. If suit is filed, the provisions
in chapter 633 relating to actions to enforce a claim shall
apply with the trust and trustee substituted for the estate and
personal representative.
8. The trustee and creditor may agree to extend the
limitations period for filing an action to enforce the claim.
If the creditor fails to properly file its claim within the
established time period or bring an action to enforce its claim
within the established time period, the creditor’s claim shall
be forever barred.
9. The trustee shall give notice to the beneficiaries of the
trust as required by section 633A.4213.
10. The trustee shall give notice to the spouse of the right
to elect to take an elective share of the trust as required

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by section 633.237 and the right to a spousal allowance as
required by section 633A.3114.
11. The trustee shall give notice to eligible children
not residing with the surviving spouse of their right to an
allowance as required by section 633A.3115.
Sec. 22. Section 633A.3111, Code 2011, is amended by
striking the section and inserting in lieu thereof the
following:
633A.3111 Rights of trustee regarding claims in a probate
administration.
1. If administration of an estate is commenced in which a
revocable trust or a trust in which a holder had at the date
of the holder’s death a presently exercisable general power
of appointment could be held responsible for the payment of
debts of the settlor or holder and the charges of the settlor’s
or holder’s estate, the trustee of the trust shall be an
interested party in the administration of the estate.
2. The trustee shall receive notice of all potential claims
against the trust assets from the personal representative of
the estate and must either authorize the payments for which
the trust may be found liable or be given the opportunity to
dispute or defend any such payment.
3. If debts of the settlor are paid from trust property,
the trustee or trust beneficiaries shall have a right to be
reimbursed from the settlor’s estate for such payment until the
final report of the settlor’s estate has been approved, unless
the debts have been barred from being collected from the estate
by notice pursuant to section 633.230 or 633.304.
Sec. 23. Section 633A.3112, Code Supplement 2011, is
amended by striking the section and inserting in lieu thereof
the following:
633A.3112 Trustee’s liability for distributions.
1. A trustee who distributes trust assets without making
adequate provisions for the payment of debts and charges that
are known or reasonably ascertainable at the time of the
distribution shall be jointly and severally liable with the
beneficiaries to the extent of the distributions made.
2. A trustee shall be entitled to indemnification from the
beneficiaries for all amounts paid for debts and charges under
this section, to the extent of distributions made.
Sec. 24. NEW SECTION . 633A.3113 Definitions —— revocable
trusts.
As used in this subchapter:

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1. “Charges” means the same as defined in section 633.3.
2. “Costs of administration” means the same as defined in
section 633.3.
3. “Debts” means the same as defined in section 633.3.
Sec. 25. NEW SECTION . 633A.3114 Allowance to surviving
spouse.
1. Unless a personal representative has been appointed
for the settlor’s estate, following the death of a settlor of
a revocable trust, the trustee of such revocable trust shall
mail a written notice to the surviving spouse pursuant to
section 633.40, subsection 5, notifying the surviving spouse
of the surviving spouse’s right to submit an application to
the trustee, within four months of service of the notice, for
a support allowance for a period of twelve months following
the death of the settlor, and for a support allowance for the
settlor’s dependents who reside with the spouse for the same
period of time.
2. Upon receipt of an application for a support allowance,
the trustee may set off and pay to the surviving spouse a
sufficient amount of trust assets the trustee deems reasonable
for the proper support of the surviving spouse for the period
of twelve months following the death of the settlor. The
trustee shall take into consideration the station of life
of the settlor’s surviving spouse, the assets and condition
of the trust, the probate and nonprobate assets received by
the surviving spouse by reason of the settlor’s death, and
the income and other resources of the surviving spouse. The
allowance may also include such additional amount as the
trustee deems reasonable for the proper support, during such
period, of the dependents of the settlor who reside with the
surviving spouse. If an application for a support allowance
has not been filed within four months following service of
the notice by or on behalf of the surviving spouse and the
dependents of the settlor who reside with the surviving spouse,
the surviving spouse and dependents of the settlor shall
be deemed to have waived the right to apply for a support
allowance during the administration of the trust.
3. A surviving spouse who qualifies for a support allowance
under this section may waive the right to such allowance
for the surviving spouse and for the dependents of the
settlor who reside with the surviving spouse by submitting an
affidavit with the trustee acknowledging receipt of notice
and irrevocably waiving the right to an allowance under this

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section.
4. The opening of an estate for the settlor shall terminate
the right of the surviving spouse to apply for a spousal
allowance from the trustee of the settlor’s revocable trust or
to receive additional support payments from the trust unless
the personal representative consents to a continuation of the
support payments. If a spousal allowance has been paid from
trust assets, the trustee or trust beneficiaries shall have
a right subject to court approval to be reimbursed from the
settlor’s estate for such payment until the final report of the
settlor’s estate has been approved.
Sec. 26. NEW SECTION . 633A.3115 Allowance to children who
do not reside with surviving spouse.
1. If the trustee is required to give notice under section
633A.3114, the trustee shall also mail, pursuant to section
633.40, subsection 5, to the legal guardian of each child
qualified under subsection 2 and to each such child or the
guardian ad litem for such child if necessary, who has no legal
guardian, a written notice regarding the right to request an
allowance. The notice shall inform the child and the child’s
guardian, if applicable, of the right to submit an application
to the trustee within four months after service of the notice,
for a support allowance for a period of twelve months following
the decedent’s death.
2. Upon receipt of an application for a support allowance,
the trustee may make an allowance of an amount the trustee
deems reasonable in light of the assets and condition of the
trust, to provide for proper support during the period of
twelve months following the decedent’s death to a child of
the decedent who does not reside with the settlor’s surviving
spouse and is any of the following:
a. Less than eighteen years of age.
b. Between the ages of eighteen and twenty-two years who is
any of the following:
(1) Regularly attending an accredited school in pursuance
of a course of study leading to a high school diploma or its
equivalent.
(2) Regularly attending a course of vocational-technical
training either as a part of a regular school program or under
special arrangements adapted to the individual person’s needs.
(3) Is, in good faith, a full-time student in a college,
university, or community college.
(4) Has been accepted for admission to a college,

House File 609, p. 15
university, or community college and the next regular term has
not yet begun.
c. Is a child of any age and dependent because of physical
or mental disability.
3. If an application for a support allowance has not
been filed within four months after service of the notice
by or on behalf of the child qualifying for an allowance
under subsection 2, the child shall be deemed to have waived
the right to an allowance under this section. A child who
qualifies for an allowance under this section or the guardian
for the child, if any, may waive the child’s right to such
an allowance by submitting an affidavit to the trustee
acknowledging receipt of notice and irrevocably waiving the
child’s right to an allowance under this section.
4. The opening of an estate for the settlor shall
terminate the right of a child to apply for an allowance from
the trustee of the settlor’s revocable trust or to receive
additional support payments from the trust unless the personal
representative consents to a continuation of support payments.
If an allowance has been paid from trust assets, the trustee
or trust beneficiaries shall have a right to be reimbursed
subject to court approval from the settlor’s estate for such
payment until the final report of the settlor’s estate has been
approved.
Sec. 27. Section 633A.4213, subsection 5, Code 2011, is
amended by striking the subsection and inserting in lieu
thereof the following:
5. a. If the trustee has refused, after written request,
to provide an accounting or other required notice under this
section to a qualified beneficiary, the court may do any of the
following:
(1) Order the trustee to comply with the trustee’s duties
under this section.
(2) Assess costs, including attorney fees, against the
trustee personally.
b. Except as provided in paragraph “a” , the only consequence
to a trustee’s failure to provide the required accounting or
notice is that the trustee shall not be able to rely upon the
statute of limitations under section 633A.4504.
Sec. 28. Section 633A.4504, Code 2011, is amended to read
as follows:
633A.4504 Limitation of action against trustee.
1. Unless previously barred by adjudication, consent,

House File 609, p. 16
or other limitation, a claim against a trustee for breach of
trust is barred as to a beneficiary who has received a final
account an accounting pursuant to section 633A.4213 or other
report that adequately disclosing discloses the existence
of the claim, unless a proceeding to assert the claim is
commenced within one year after the earlier of the receipt
of the accounting or report of the termination of the trust
relationship between the trustee and beneficiary . An account
accounting or report adequately discloses the existence of
a claim if it provides sufficient information so that the
beneficiary knows of the claim or reasonably should have
inquired into its existence.
2. For the purpose of subsection 1 , a beneficiary is
deemed to have received an account accounting or report in the
following instances:
a. In the case of an adult who is reasonably capable of
understanding the account accounting or report, if it is
received by the adult personally.
b. In the case of an adult who is not reasonably capable
of understanding the account accounting or report, if it is
received by the adult’s legal representative, including a
guardian ad litem or other person appointed for this purpose.
c. In the case of a minor, if it is received by the minor’s
guardian or conservator or, if the minor does not have a
guardian or conservator, if it is received by a parent of the
minor who does not have a conflict of interest.
3. Any claim for breach of trust against a trustee who has
presented a final an accounting or report to a beneficiary more
than one year prior to July 1, 2000 2011 , shall be time barred
unless some exception stated in this section applies which
tolls the statute. Any claim arising under this section within
one year of July 1, 2000 2011 , shall be time barred after one
year unless an exception applies to toll the statute.
4. For the purposes of this section, “report” means a
document including but not limited to a letter, delivered by or
on behalf of the trustee to a beneficiary of the trust.
Sec. 29. NEW SECTION . 633A.4606 Interest as general
partner.
1. Except as otherwise provided in subsection 3 or unless
personal liability is imposed in the contract, a trustee who
holds an interest as a general partner in a general or limited
partnership is not personally liable on a contract entered
into by the partnership after the trust’s acquisition of

House File 609, p. 17
the interest if the fiduciary capacity was disclosed in the
contract or in a statement previously filed pursuant to section
486A.303 or 488.201.
2. Except as otherwise provided in subsection 3, a
trustee who holds an interest as a general partner is not
personally liable for torts committed by the partnership or for
obligations arising from ownership or control of the interest
unless the trustee is personally at fault.
3. The immunity provided by this section does not apply
if an interest in the partnership is held by the trustee in a
capacity other than that of trustee or is held by the trustee’s
spouse or one or more of the trustee’s descendants, siblings,
or parents, or the spouse of any of the trustee’s descendants,
siblings, or parents.
4. If the trustee of a revocable trust holds an interest as
a general partner, the settlor shall be personally liable for
contracts and other obligations of the partnership as if the
settlor were a general partner.
Sec. 30. Section 635.7, Code 2011, is amended to read as
follows:
635.7 Report and inventory —— value and conversion.
1. The personal representative is required to file the
report and inventory for which provision is made in section
633.361 , including all probate and nonprobate assets. This
chapter does not exempt the personal representative from
complying with the requirements of section 422.27 , 450.22 ,
450.58 , 633.480 , or 633.481 , and the administration of an
estate whether converted to or from a small estate shall be
considered one proceeding pursuant to section 633.330 .
2. If the The report and inventory and report shows
shall show the gross value of probate assets subject to the
jurisdiction of this state which exceed .
3. If the gross value of probate assets subject to the
jurisdiction of this state exceeds the amount permitted
for a small estate under section 635.1 , the estate shall be
administered as provided in chapter 633 .
3. 4. If the inventory report and inventory in an estate
probated pursuant to chapter 633 indicates shows the gross
value of the probate assets subject to the jurisdiction of this
state does not exceed the amount permitted under section 635.1 ,
the estate shall be administered as a small estate upon the
filing of a statement by the personal representative that the
estate is a small estate.

House File 609, p. 18
4. 5. Other interested parties may convert proceedings from
a small estate to a regular estate or from a regular estate to
a small estate only upon good cause shown with approval from
the court.
Sec. 31. Section 635.8, Code 2011, is amended to read as
follows:
635.8 Closing by sworn statement.
1. The personal representative shall file with the court
a closing statement and proof of service thereof within a
reasonable time from the date of issuance of the letters of
appointment , and the . The closing statement shall be verified
or affirmed under penalty of perjury , stating all of the
following:
a. To the best knowledge of the personal representative, the
gross value of the probate assets subject to the jurisdiction
of this state does not exceed the amount permitted under
section 635.1 .
b. The estate has been fully administered and will be
disbursed and distributed to persons entitled to the estate
thereto if no objection is filed to the closing statement after
the requisite time period has expired as provided in subsection
2 and the accounting and proposed distribution within thirty
days after service thereof .
c. A description of the disbursement and An accounting
and proposed distribution of the estate including an accurate
description of all the real estate of which the decedent died
seized, stating the nature and extent of the interest in the
real estate and its disposition.
d. A copy of the closing statement and a notice of an
opportunity to object to and request a hearing has been sent by
proper notice , as provided in section 633.40 , to all interested
parties.
e. The personal representative has complied with A statement
as to whether or not all statutory requirements pertaining to
taxes have been complied with , including whether federal estate
tax was paid or a return was filed, whether Iowa inheritance
tax was paid or a return was filed, whether the decedent’s
final personal income taxes were filed, whether fiduciary
income tax returns for the estate were filed, and due has been
paid, whether a lien continues to exist for any federal or
state estate tax , and whether inheritance tax was paid or a tax
return was filed in this state .
f. The amount of fees to be paid to the personal

House File 609, p. 19
representative and the personal representative’s attorney
with the appropriate documentation showing compliance with
subsection 4.
2. If no actions or proceedings involving the estate are
pending in the court thirty days after notice service of the
closing statement is filed , the the estate shall be distributed
according to the closing statement.
3. The estate shall close and the personal representative
shall be discharged after distribution upon the earlier of
either of the following:
a. The filing of a statement of disbursement of assets
with the clerk by the personal representative an affidavit of
mailing or other proof of service of the closing statement
and a statement of asset distribution by the personal
representative .
b. An additional thirty days have passed after notice of the
Sixty days after the filing of the closing statement is filed
and an affidavit of mailing or other proof of service thereof .
3. 4. The closing statement shall include a statement
as to the amount of fees to be paid for services rendered by
the personal representative and the personal representative’s
attorney in administration of the estate. The fees for the
personal representative shall not exceed three percent of the
gross value of the probate assets of the estate, unless the
personal representative itemizes the personal representative’s
services to the estate. The personal representative’s attorney
shall be paid reasonable fees as approved by the court or
as agreed to in writing by the personal representative at
or before and such writing shall be executed by the time of
filing the probate inventory or as approved by the court .
All interested parties shall have the opportunity to object
and request a hearing as to all fees reported in the closing
statement.
4. 5. If a closing statement is not filed within twelve
months of the date of issuance of a letter of appointment, an
interlocutory report shall be filed within such time period.
Such report shall be provided to all interested parties at
least once every six months until the closing statement has
been filed unless excused by the court for good cause shown.
The provisions of section 633.473 requiring final settlement
within three years shall apply to an estate probated pursuant
to this chapter . A closing statement filed under this section
has the same effect as final settlement of the estate under

House File 609, p. 20
chapter 633 .
Sec. 32. APPLICABILITY.
1. The sections of this Act amending sections 422.7, 450.4,
633.237, 633.246, 633.374, 633.375, 633.376, 633.377 and
633.471 apply to estates of decedents dying on or after July
1, 2012.
2. The section of this Act amending section 633.561 applies
to all judicial proceedings on or after July 1, 2012, in which
an order for the appointment of a guardian is sought or has
been issued.
3. The sections of this Act amending or enacting sections
633A.3104, 633A.3108, 633A.3109, 633A.3110, 633A.3112,
633A.3113, 633A.3114, and 633A.3115 apply to trusts of settlors
dying on or after July 1, 2012.
4. The sections of this Act amending or enacting sections
633A.2203 and 633A.4606 apply to trusts in existence on or
after July 1, 2012.
5. The section of this Act amending section 633A.3102
applies to revocable trusts and powers of attorney in existence
on or after July 1, 2012.
______________________________
KRAIG PAULSEN
Speaker of the House
______________________________
JOHN P. KIBBIE
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 609, Eighty-fourth General Assembly.
______________________________
W. CHARLES SMITHSON
Chief Clerk of the House
Approved _______________, 2012
______________________________
TERRY E. BRANSTAD
Governor