Iowa Code § 633A.3112
Trustee’s liability for distributions
Redline — January 1, 2012 → current.View current text →
Current — January 1, 2017
As of January 1, 2012
As used in this subchapter:
1. “Charges” includes costs of administration, funeral expenses, costs of monuments, and federal and state estate taxes.
2. “Claimant” includes any interested party who possesses any legal claim to trust property, the settlor’s spouse, the settlor’s heirs as defined in section 633A.3109, and any other person or entity with standing to challenge the trust, a creditor of the settlor, and a personal representative of the settlor’s estate.
3. “Debts” includes liabilities of the settlor owed at death that survive the settlor’s death, whether arising in contract, tort, or otherwise.
Subsection 1 amended
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.
Official source: Iowa Legislature. Reproduced from public-domain Iowa statutes; confirm against the official source for the current text. Not legal advice.