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

1. A trustee shall exercise a discretionary power within the bounds of reasonable judgment and in accordance with applicable fiduciary principles and the terms of the trust. 2. Notwithstanding the use of such terms as “absolute”, “sole”, or “uncontrolled” in the grant of discreti…

1. As used in this section : a. “First trust” means a trust from which income or principal is transferred into the second trust. b. “Restricted trustee” means a trustee of the first trust if such trustee is a beneficiary of the first trust or if such trustee has the power to chan…

This part may be cited as the “Uniform Prudent Investor Act” . 99 Acts, ch 125, §61, 109 C2001, §633.4301 2005 Acts, ch 38, §54, 55 CS2005, §633A.4301

1. A trustee shall invest and manage trust property as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. 2. A …

A trustee shall diversify the investments of the trust unless the trustee reasonably determines that the purposes of the trust are better served without diversifying. 99 Acts, ch 125, §63, 109 C2001, §633.4303 2005 Acts, ch 38, §54 CS2005, §633A.4303

Within a reasonable time after accepting a trusteeship or receiving trust property, a trustee shall review the trust property and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purpos…

A trustee shall invest and manage the trust property solely in the interest of the beneficiaries. 99 Acts, ch 125, §65, 109 C2001, §633.4305 2005 Acts, ch 38, §54 CS2005, §633A.4305

If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust property, taking into account any differing interests of the beneficiaries. 99 Acts, ch 125, §66, 109 C2001, §633.4306 2005 Acts, ch 38, §54 CS2005, §633A.4306

In investing and managing trust property, a trustee may only incur costs that are appropriate and reasonable in relation to the property, the purposes of the trust, and the skills of the trustee. 99 Acts, ch 125, §67, 109 C2001, §633.4307 2005 Acts, ch 38, §54 CS2005, §633A.4307…

Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight. 99 Acts, ch 125, §68, 109 C2001, §633.4308 2005 Acts, ch 38, §54 CS2005, §633A.4308

The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this trust code: 1. Investments permissible by law for investment of trust funds. 2. Legal investments. 3. Authoriz…

1. A trustee, without authorization by the court, may exercise the following powers: a. The powers conferred by the terms of the trust. b. Except as limited by the terms of the trust, powers conferred by this trust code. 2. This part does not affect the power of the court to reli…

In addition to the powers conferred by the terms of the trust, a trustee may perform all actions necessary to accomplish the proper management, investment, and distribution of the trust property, including the following powers: 1. Collect, hold, and retain trust property received…

1. A trustee under this chapter may present a written request to any person for the purpose of obtaining information needed to perform the trustee’s duties or information regarding any of the following property: a. Owned by the trust for which the trustee is acting as fiduciary. …

1. A violation by a trustee of a duty the trustee owes a beneficiary is a breach of trust. 2. The remedies of a beneficiary for breach of trust are exclusively equitable and any action shall be brought in a court of equity. 99 Acts, ch 125, §73, 109 C2001, §633.4501 2005 Acts, ch…

1. Except as provided in section 633A.4213 , to remedy a breach of trust which has occurred or may occur, a beneficiary or cotrustee of the trust may request the court to do any of the following: a. Compel the trustee to perform the trustee’s duties. b. Enjoin the trustee from co…

A beneficiary may charge a trustee who commits a breach of trust with the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred, or, if greater, the amount of profit lost by reason of the breach…

1. Unless previously barred by adjudication, consent, or other limitation, a claim against a trustee for breach of trust is barred as to a beneficiary who has received an accounting pursuant to section 633A.4213 or other report that adequately discloses the existence of the claim…

A provision in the terms of the trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it does either of the following: 1. Relieves a trustee of liability for breach of trust committed intentionally, with gross negligence, in bad faith, or …

1. A beneficiary shall not hold a trustee liable for a breach of trust if the beneficiary does any of the following: a. Consents to the conduct constituting the breach. b. Releases the trustee from liability for the breach. c. Affirms the transaction constituting the breach. 2. A…

In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney fees, to any party, to be paid by another party or from the trust that is the subject of the controversy. 20…

1. Except as otherwise provided in the contract or in this part, a trustee is not personally liable on a contract properly entered into in the trustee’s fiduciary capacity in the course of administration of the trust unless the trustee fails to reveal the representative capacity …

1. A cotrustee who does not join in exercising a power is not liable to a third party for the consequences of the exercise of the power. 2. A dissenting cotrustee who joins in an action at the direction of the majority cotrustees is not liable to a third party for the action if t…

1. With respect to a third party dealing with a trustee or assisting a trustee in the conduct of a transaction, if the third party acts in good faith and for a valuable consideration and without knowledge that the trustee is exceeding the trustee’s powers or is improperly exercis…

1. A trustee may present a certification of trust to any person in lieu of providing a copy of the trust instrument to establish the trust’s existence or terms or the trustee’s authority. 2. The certification of trust must do all of the following: a. State the names of all the cu…

A person who, in bad faith, wrongfully takes, conceals, or disposes of trust property is liable for twice the value of the property, attorney fees, court costs, and where consistent with existing law, punitive damages, recoverable in an action by a trustee for the benefit of the …

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…

1. Unless otherwise specifically stated by the terms of the trust, the interest of each beneficiary is contingent on the beneficiary surviving until the date on which the beneficiary becomes entitled to possession or enjoyment of the beneficiary’s interest in the trust. 2. If a b…

In the absence of clear and convincing evidence to the contrary, language in a governing instrument granting a trustee discretion to make or withhold a distribution shall prevail over any language in the governing instrument indicating that the beneficiary may have a legally enfo…

Except as otherwise provided by the governing instrument, where necessary to abate shares of the beneficiaries of a trust for the payment of debts and charges, federal estate taxes, bequests, the share of the surviving spouse who takes an elective share, and the shares of childre…

If the determination of the successor of a beneficial interest in a trust is dependent upon whether a beneficiary has survived the death of a settlor, of another beneficiary, or of any other person, the uniform simultaneous death Act, sections 633.523 through 633.528 , shall gove…

Chapter 637 shall apply to trusts subject to this chapter . 2005 Acts, ch 38, §46

When a minor becomes entitled under the terms of the trust to a beneficial interest in the trust upon the distribution of the trust fund and the value of the interest does not exceed the sum of twenty-five thousand dollars, the trustee may pay the interest to a custodian under an…

A person who intentionally and unjustifiably causes or procures the death of another shall not receive any property, benefit, or other interest as a beneficiary of a trust by reason of such death. Any property, benefit, or other interest that such person would have received becau…

Any governing instrument providing for a trust director or trust protector may also provide such trust director or trust protector with some, none, or all of the rights, powers, privileges, benefits, immunities, or authorities available to a trustee under the law of this state or…

1. An excluded fiduciary is not liable, either individually or as a fiduciary, for any of the following: a. Any loss that results from compliance with a direction of the trust director, including any loss from the trust director breaching fiduciary responsibilities or acting beyo…

An excluded fiduciary may continue to follow the direction of the trust director upon the incapacity or death of the settlor if the instrument so allows. 2020 Acts, ch 1076, §9 Referred to in §633A.4207

If an instrument appoints a trust protector, the excluded fiduciary is not liable for any loss resulting from any action taken upon the trust protector’s direction. 2020 Acts, ch 1076, §10 Referred to in §633A.4207

1. The powers of a trust protector are as provided in the governing instrument and may be exercised or not exercised, in the best interests of the beneficiaries as a class, in the sole and absolute discretion of the trust protector and are binding on all other persons. The powers…

By accepting an appointment to serve as a trust director or trust protector of a trust that is subject to the laws of this state, the trust director or the trust protector submits to the jurisdiction of the courts of Iowa even if investment advisory agreements or other related ag…

Any of the powers enumerated in section 633A.4805 , as they exist at the time of the signing of a will by a testator or at the time of the signing of a trust instrument by a settlor, may be, by appropriate reference made thereto, incorporated in whole or in part in such will or t…

A trust instrument governed by the laws of this state may provide for a person to act as an investment trust director or a distribution trust director with regard to investment decisions or discretionary distributions, respectively. Unless otherwise provided by the terms of the g…

The powers of an investment trust director shall be provided in the trust instrument and may be exercised or not exercised, in the best interests of the beneficiaries as a class, in the sole and absolute discretion of the investment trust director and are binding on any other per…

The powers of a distribution trust director over any discretionary distributions of income or principal, including distributions pursuant to an ascertainable standard or other criteria and appointments pursuant to section 633A.4215 , shall be provided in the trust instrument and …

1. A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, or any other purpose the accomplishment of which is beneficial to the community. 2. If the terms of the trust do not indicate a particular charitable…

Unless the terms of the trust provide to the contrary the following apply: 1. A charitable trust does not fail, in whole or in part, if a particular purpose for which the trust was created becomes impracticable, unlawful, or impossible to fulfill. 2. If a particular charitable pu…