Title XV, JUDICIAL BRANCH AND JUDICIAL PROCEDURES (Ch. 595 - 686D)

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. 99 A…

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 s…

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 633.1…

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 wa…

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 i…

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. Exer…

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…

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 authori…

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. 99 Acts, ch 125, §11, 109 C2001, §633.2104 2005 Acts, ch 38, §54…

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 car…

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 tr…

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. 99 Acts, ch 125, §14,…

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…

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 agr…

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…

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…

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 tr…

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.…

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…

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…

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 o…

Except as otherwise provided in section 633A.2303 : 1. A term of a trust providing that the interest of a beneficiary is held subject to a “spendthrift trust”, or words of similar import, is sufficient to restrain both voluntary and involuntary transfer, assignment, and encumbran…

A term of a trust prohibiting an involuntary transfer of a beneficiary’s interest shall be invalid as against claims by any creditors of the beneficiary if the beneficiary is the settlor. 99 Acts, ch 125, §24, 109 C2001, §633.2303 2005 Acts, ch 38, §39, 54 CS2005, §633A.2303 2008…

1. If a settlor is a beneficiary of a trust created by the settlor, a transferee or creditor of the settlor may reach the maximum amount that the trustee could pay to or for the settlor’s benefit. 2. In the case of a trust with multiple settlors, the amount the creditors or trans…

1. Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary shall not compel a distribution that is subject to the trustee’s discretion, even if any of the following occur: a. The discretion is expressed in the form of a standard of distrib…

1. If a trustee has discretion as to payments to a beneficiary, and refuses to make payments or exercise its discretion, the court shall neither order the trustee to exercise its discretion nor order payment from any such trust, if any such payment would inure, directly or indire…

1. A creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the required distribution d…

1. To create, revoke, or modify a revocable trust, the settlor must be competent. An aggrieved person shall have all causes of action and remedies available to the aggrieved person in attacking the creation, revocation, or modification of a revocable trust as one would if attacki…

1. Unless the terms of the trust expressly provide that the trust is irrevocable, the settlor may revoke or modify the trust. This subsection does not apply to trusts created under instruments executed before July 1, 2000. 2. Except as otherwise provided by the terms of the trust…

Except to the extent the terms of the trust otherwise provide, while a trust is revocable, all of the following apply unless the trustee actually knows that the individual holding the power to revoke the trust is not competent: 1. The holder of the power, and not the beneficiary,…

1. During the lifetime of the settlor, the trust property of a revocable trust is subject to the debts of the settlor to the extent of the settlor’s power of revocation. 2. Following the death of a settlor, if the settlor’s estate is inadequate to satisfy the debts of the settlor…

1. The holder of a presently exercisable general power of appointment over trust property has the rights of a holder of the power to revoke a trust under section 633A.3103 to the extent of the property subject to the power. 2. Property in trust subject to a presently exercisable …

1. When a settlor fails to provide in a revocable trust for any of the settlor’s children born to or adopted by the settlor after the execution of the trust or the last amendment to the trust, such child, whether born before or after the settlor’s death, shall receive a share of …

1. If, after executing a revocable trust, the settlor is divorced or the settlor’s marriage is dissolved, all provisions in the trust in favor of the settlor’s spouse or of a relative of the settlor’s spouse, including but not limited to dispositions, appointments of property, an…

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 i…

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 n…

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 in this section to creditors, heirs, and the surviving spouse of the settlor for the purpose of…

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 ch…

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 distribut…

As used in this subchapter : 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 . 2012 Acts, ch 1123, §24, 32

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…

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 necess…

1. A person named as trustee accepts the office of trustee by doing one of the following: a. Signing the trust instrument, or signing a separate written acceptance. b. Except as provided in subsection 3 , knowingly accepting delivery of the trust property or exercising powers or …

1. A trustee is not required to give a bond to secure performance of the trustee’s duties unless one of the following applies: a. A bond is expressly required by the terms of the trust. b. A bond is found by the court to be necessary to protect the interests of beneficiaries, reg…

Unless the terms of the trust provide otherwise, the following apply to actions of cotrustees: 1. A power held by cotrustees may be exercised by majority action. 2. If impasse occurs due to the failure to reach a majority decision, any trustee may petition the court to decide the…

A vacancy in the office of trustee exists if any of the following occurs: 1. The person named as trustee declines to serve as trustee. 2. The person named as trustee cannot be identified or does not exist. 3. The trustee resigns or is removed. 4. The trustee dies. 5. A guardian o…