Iowa Code § 633A.1101
Short title
This chapter may be cited as the “Iowa Trust Code” or “Trust Code”.
Iowa Code Chapter 633A — Iowa Trust Code
Iowa · statute · Iowa Code ch. 633A · 137 active provisions
Provisions
Iowa Code § 633A.1102
Definitions
For purposes of this chapter: 1. “Adjusted gross estate”, as it relates to a trust, means the same as defined in section 633.266. 2. “Beneficiary”, as it relates to a trust beneficiary, includes a person who has any present or future interest in the trust, vested or contingent, and also includes the owner of an interes…
Iowa Code § 633A.1103
Per stirpes rule of descent
Unless the trust instrument provides otherwise, all gifts to multigeneration classes shall be per stirpes.
Iowa Code § 633A.1104
Common law of trusts
Except to the extent that this chapter modifies the common law governing trusts, the common law of trusts shall supplement this trust code.
Iowa Code § 633A.1105
Trust terms control
The terms of a trust shall always control and take precedence over any section of this trust code to the contrary. If a term of the trust modifies or makes any section of this trust code inapplicable to the trust, the common law shall apply to any issues raised by such term.
Iowa Code § 633A.1106
General rule concerning application of the Iowa trust code
1. This trust code applies to all trusts within the scope of this trust code, regardless of whether the trust was created before, on, or after July 1, 2000, except as otherwise stated in this trust code. 2. This trust code applies to all proceedings concerning trusts within the scope of this trust code commenced on or…
Iowa Code § 633A.1107
Scope of trust code
1. Except as otherwise provided in subsection 2, this trust code shall apply to trusts, as defined in section 633A.1102, that are intentionally created, or deemed to be intentionally created, by individuals and other entities. 2. With regard to trusts described in section 633.10 that have not been judicially released f…
Iowa Code § 633A.1108
Governing law
1. A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which at the time the trust was created the settlor was domiciled, had a place of abode, or was a national. 2. The meaning and effect…
Iowa Code § 633A.1109
Methods of notice and document delivery waiver
Except as otherwise provided by this chapter: 1. Giving notice to a person, including notice of a judicial proceeding, or the sending of a document to a person under this chapter shall be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Perm…
Iowa Code § 633A.2101
Methods of creating trusts
A trust may be created by any of the following methods: 1. Transfer of property to another person as trustee during the settlor’s lifetime, or by will taking effect upon the settlor’s death. 2. Declaration by the owner of property that the owner holds property as trustee. 3. Exercise of a power of appointment in favor…
Iowa Code § 633A.2102
Requirements for validity
1. A trust is created only if all of the following elements are satisfied: a. The settlor was competent and indicated an intention to create a trust. b. The same person is not the sole trustee and sole beneficiary. c. The trust has a definite beneficiary or a beneficiary who will be definitely ascertained within the pe…
Iowa Code § 633A.2103
Statute of frauds
1. A trust is enforceable when evidenced by either of the following: a. A written instrument signed by the trustee, or by the trustee’s agent if authorized in writing. b. A written instrument conveying the trust property signed by the settlor, or by the settlor’s agent if authorized in writing. 2. If an owner of proper…
Iowa Code § 633A.2104
Trust purposes
1. A trust is created only if it has a private or charitable purpose that is not unlawful or against public policy. 2. A trust created for a private purpose must be administered for the benefit of its beneficiaries.
Iowa Code § 633A.2105
Honorary trusts — trusts for pets
1. A trust for a lawful noncharitable purpose for which there is no definite or definitely ascertainable beneficiary is valid but may be performed by the trustee for only twenty-one years, whether or not the terms of the trust contemplate a longer duration. 2. A trust for the care of an animal living at the settlor’s d…
Iowa Code § 633A.2106
Resulting trusts
1. Where the owner of property gratuitously transfers the property and manifests in the trust instrument an intention that the transferee should hold the property in trust but the trust fails, the transferee holds the trust estate as a resulting trust for the transferor or the transferor’s estate, unless either of the…
Iowa Code § 633A.2107
Constructive trusts
A constructive trust arises when a person holding title to property is subject to an equitable duty to convey the property to another, on the ground that the person holding title would be unjustly enriched if the person were permitted to retain the property.
Iowa Code § 633A.2201
Termination of trust
1. In addition to the methods specified in sections 633A.2202 through 633A.2206, a trust terminates when any of the following occurs: a. The term of the trust expires. b. The trust purpose is fulfilled. c. The trust purpose becomes unlawful or impossible to fulfill. d. The trust is revoked. 2. On termination of a trust…
Iowa Code § 633A.2202
Modification or termination by settlor and all beneficiaries
1. An irrevocable trust may be modified or terminated upon the consent of the settlor and all of the beneficiaries. 2. Upon termination of the trust, the trustee shall distribute the trust property as agreed by the settlor and all beneficiaries, or in the absence of unanimous agreement, as ordered by the court. 3. For…
Iowa Code § 633A.2203
Termination of irrevocable trust or modification of dispositive provisions of irrevocable trust by court
1. An irrevocable trust may be terminated or its dispositive provisions modified by the court with the consent of all of the beneficiaries if continuance of the trust on the same or different terms is not necessary to carry out a material purpose. 2. Upon termination of the trust, the court shall order the distribution…
Iowa Code § 633A.2204
Modification of administrative provisions by court for change of circumstances
On petition by a trustee or beneficiary, the court may modify the administrative provisions of the trust, if, owing to circumstances not known to the settlor and not anticipated by the settlor, the continuation of the trust under its terms would defeat or substantially impair the accomplishment of the purposes of the t…
Iowa Code § 633A.2205
Noncharitable trust with uneconomically low value
1. On petition by a trustee or beneficiary, the court may terminate or modify a noncharitable trust or appoint a new trustee if the court determines that the value of the trust property is insufficient to justify the cost of administration involved and that continuation of the trust under its existing terms would defea…
Iowa Code § 633A.2206
Reformation — tax objectives
1. The court may reform the terms of the trust, even if unambiguous, to conform to the settlor’s intent if it is proved by clear and convincing evidence that the settlor’s intent and the terms of the trust were affected by a mistake of fact or law whether expressed or induced. 2. The terms of the trust may be construed…
Iowa Code § 633A.2207
Combination of trusts
1. A trustee, without approval of court, may combine two or more trusts with substantially similar beneficial interests unless the trust is a court reporting trust. 2. On petition by a trustee or beneficiary, the court may combine two or more trusts, whether or not the beneficial interests are substantially similar, if…
Iowa Code § 633A.2208
Division of trusts
1. Without approval of a court, a trustee may divide a trust into two or more separate trusts with substantially similar terms if the division will not defeat or substantially impair the accomplishment of the trust purposes or the rights of the beneficiaries unless the trust is a court reporting trust. 2. On petition b…
Iowa Code § 633A.2301
Rights of beneficiary, creditor, and assignee
To the extent a beneficiary’s interest is not subject to a spendthrift provision, and subject to sections 633A.2305 and 633A.2306, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary’s interest by levy, attachment, or execution of present or future distributions to or for the bene…
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