House File 2517 - Enrolled
House File 2517
AN ACT
RELATING TO TRUSTS, INCLUDING IRREVOCABLE TRUSTS, TRUST
PETITIONS, AND TRUST PROCEEDINGS.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 633A.2203, subsection 5, Code 2024, is
2 amended to read as follows:
3 5. A spendthrift provision, or a provision giving the
4 trustee discretion to distribute income or principal to a
5 beneficiary or among beneficiaries, in the terms of the trust
6 is presumed to constitute a material purpose of the trust
7 may help implement a material purpose of the settlor. A
8 spendthrift provision, or a provision giving the trustee
9 discretion to distribute income or principal to a beneficiary
10 or among beneficiaries, is enforceable against beneficiaries
11 and third parties that attempt to force the trustee to act or
12 to reach trust assets. A spendthrift provision, or a provision
13 giving the trustee discretion to distribute income or principal
14 to a beneficiary or among beneficiaries, does not create a
15 presumption that the settlor would not want the trust to be
16 modified or terminated when all of the beneficiaries consent
17 and if circumstances not anticipated by the settlor indicate
18 that the best interests of the beneficiaries as a class will be
19 better served if the trust is modified or terminated.
20 Sec. 2. Section 633A.6202, subsection 1, Code 2024, is
21 amended to read as follows:
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22 1. Except as otherwise provided in section 633A.3103, a
23 trustee, or beneficiary, or other interested party of a trust
24 may petition the court concerning the internal affairs of the
25 trust or to determine the existence of the trust.
26 Sec. 3. Section 633A.6202, subsection 2, paragraphs e, f, h,
27 i, j, and k, Code 2024, are amended to read as follows:
28 e. Settle accounts and pass upon the acts of the any
29 trustee, trust director, or trust protector, including the
30 exercise of discretionary powers.
31 f. Instruct the any trustee, trust director, or trust
32 protector.
33 h. Grant powers to or modify powers of the any trustee,
34 trust director, or trust protector.
35 i. Fix or allow payment of the trustee’s compensation of the
1 trustee or any trust director or trust protector or review the
2 reasonableness of the compensation.
3 j. Appoint or remove a any trustee, trust director, or trust
4 protector.
5 k. Accept the resignation of a any trustee, trust director,
6 or trust protector.
______________________________ ______________________________
PAT GRASSLEY AMY SINCLAIR
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2517, Ninetieth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2024 ______________________________
KIM REYNOLDS
Governor