Iowa Code 637.603 – Trustee requirements to convert or change computation method
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Terms Used In Iowa Code 637.603
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
- Trustee: A person or institution holding and administering property in trust.
- Trustor: The person who makes or creates a trust. Also known as the grantor or settlor.
637.603 Trustee requirements to convert or change computation method.
A trustee may proceed to take action under § 637.602 if all of the following apply:
1. The trustee adopts a written policy for the trust as follows:
a. In the case of a trust being administered as an income trust, requiring that future
distributions from the trust will be unitrust amounts rather than net income.
b. In the case of a trust being administered as a total return unitrust, requiring that future
distributions from the trust will be net income rather than unitrust amounts.
c. Requiring that the method used to determine the fair market value of the trust will be
changed as stated in the policy.
2. The trustee sends written notice of the trustee’s intention to take any action described
in § 637.602, along with copies of such written policy and this subchapter, to all of the
following persons:
a. The trustor of the trust, if living.
b. All living persons who are currently receiving or eligible to receive distributions of
income of the trust.
c. All living persons who would receive principal of the trust if the trust were to terminate
at the time of the giving of such notice, without regard to the exercise of any power of
appointment or, if the trust does not provide for its termination, all living persons who would
receive or be eligible to receive distributions of income or principal of the trust if the persons
identified in paragraph “”b”” were deceased.
d. All persons named in the governing instrument as adviser to or protector of the trust.
3. At least one person receiving notice under subsection 2, paragraphs “”b”” and “”c””, is
legally competent.
4. No person receiving such notice under subsection 2, objects, by written instrument
delivered to the trustee, to the proposed action of the trustee within sixty days of receipt of
such notice.
2002 Acts, ch 1086, §7, 21; 2003 Acts, ch 44, §104
Referred to in §637.602, 637.613
A trustee may proceed to take action under § 637.602 if all of the following apply:
1. The trustee adopts a written policy for the trust as follows:
a. In the case of a trust being administered as an income trust, requiring that future
distributions from the trust will be unitrust amounts rather than net income.
b. In the case of a trust being administered as a total return unitrust, requiring that future
distributions from the trust will be net income rather than unitrust amounts.
c. Requiring that the method used to determine the fair market value of the trust will be
changed as stated in the policy.
2. The trustee sends written notice of the trustee’s intention to take any action described
in § 637.602, along with copies of such written policy and this subchapter, to all of the
following persons:
a. The trustor of the trust, if living.
b. All living persons who are currently receiving or eligible to receive distributions of
income of the trust.
c. All living persons who would receive principal of the trust if the trust were to terminate
at the time of the giving of such notice, without regard to the exercise of any power of
appointment or, if the trust does not provide for its termination, all living persons who would
receive or be eligible to receive distributions of income or principal of the trust if the persons
identified in paragraph “”b”” were deceased.
d. All persons named in the governing instrument as adviser to or protector of the trust.
3. At least one person receiving notice under subsection 2, paragraphs “”b”” and “”c””, is
legally competent.
4. No person receiving such notice under subsection 2, objects, by written instrument
delivered to the trustee, to the proposed action of the trustee within sixty days of receipt of
such notice.
2002 Acts, ch 1086, §7, 21; 2003 Acts, ch 44, §104
Referred to in §637.602, 637.613