633A.4213 Duty to inform and account.
A trustee of an irrevocable trust shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and the material facts necessary to protect the beneficiaries’ interests.
1. The trustee shall inform each qualified beneficiary of the beneficiary’s right to receive an annual accounting and a copy of the trust instrument. The trustee shall also inform each qualified beneficiary about the process necessary to obtain an annual accounting or a copy of the trust instrument, if not provided. The trustee shall further inform each qualified beneficiary whether the beneficiary will, or will not, receive an annual accounting if the beneficiary fails to take any action. If a qualified beneficiary has previously been provided the notice required by this section, additional notice shall not be required due to a change of trustees or a change in the composition of the qualified beneficiaries.
2. The trustee shall provide the notice required in subsection 1 to each qualified beneficiary within a reasonable time following any of the following events:
a. The commencement of the trust administration.
b. The trustee becoming aware that there is a new qualified beneficiary or a representative of any minor or incompetent beneficiary.
c. The trust becoming irrevocable.
d. The time that no person, except the trustee, has the right to change the beneficiaries of the trust.
3. Except as provided in subsection 4, a trustee shall provide annually to each adult beneficiary and the representative of any minor or incompetent beneficiary who may receive a distribution of income or principal during the accounting time period, an accounting, unless an accounting has been waived specifically for that accounting time period.
4. If a settlor has retained the right to change the beneficiaries of the trust or if a party is the holder of a presently exercisable general power of appointment, the trustee shall only be required to report to the settlor or the party.
5. a. If the trustee has refused, after written request, to provide an accounting or other required notice under this section to a qualified beneficiary, the court may do any of the following:
(1) Order the trustee to comply with the trustee’s duties under this section.
(2) Assess costs, including attorney fees, against the trustee personally.
b. Except as provided in paragraph “a”, the only consequence to a trustee’s failure to provide the required accounting or notice is that the trustee shall not be able to rely upon the statute of limitations under section 633A.4504.
6. The format and content of an accounting required by this section shall be within the discretion of the trustee, as long as sufficient to reasonably inform the beneficiary of the condition and activities of the trust during the accounting period.
7. This section does not apply to any trust created prior to July 1, 2002. This section applies to any trust created on or after July 1, 2002, unless the settlor has specifically waived the requirements of this section in the trust instrument. Waiver of this section shall not bar any beneficiary’s common-law right to an accounting, and shall not provide any immunity to a trustee, acting under the terms of the trust, for liability to any beneficiary who discovers facts giving rise to a cause of action against the trustee.
8. Notwithstanding anything in this chapter to the contrary, if a trust instrument, or a trust protector authorized by the trust instrument, designates that a notice, accounting, or report may be delivered to the settlor or to a designated representative on behalf of a beneficiary prior to such beneficiary’s twenty-fifth birthday, then, to the extent there is no conflict of interest between the representative and the beneficiary, all notices, accountings, and reports served on such representative with respect to such period will have the same effect as if such beneficiary had been served directly.
99 Acts, ch 125, §59, 109
C2001, §633.4213
2001 Acts, ch 176, §78; 2002 Acts, ch 1107, §12; 2002 Acts, ch 1175, §93; 2003 Acts, ch 95, §15; 2005 Acts, ch 38, §54, 55
CS2005, §633A.4213
2006 Acts, ch 1104, §12, 13, 16; 2012 Acts, ch 1123, §27; 2020 Acts, ch 1076, §5
Referred to in §633A.3110, 633A.4202, 633A.4215, 633A.4502, 633A.4504, 633A.4805, 633A.4810, 633A.5107
Structure Iowa Code
Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES
Chapter 633A - IOWA TRUST CODE
Section 633A.1101 - Short title.
Section 633A.1102 - Definitions.
Section 633A.1103 - Per stirpes rule of descent.
Section 633A.1104 - Common law of trusts.
Section 633A.1105 - Trust terms control.
Section 633A.1106 - General rule concerning application of the Iowa trust code.
Section 633A.1107 - Scope of trust code.
Section 633A.1108 - Governing law.
Section 633A.1109 - Methods of notice and document delivery — waiver.
Section 633A.2101 - Methods of creating trusts.
Section 633A.2102 - Requirements for validity.
Section 633A.2103 - Statute of frauds.
Section 633A.2104 - Trust purposes.
Section 633A.2105 - Honorary trusts — trusts for pets.
Section 633A.2106 - Resulting trusts.
Section 633A.2107 - Constructive trusts.
Section 633A.2201 - Termination of trust.
Section 633A.2202 - Modification or termination by settlor and all beneficiaries.
Section 633A.2204 - Modification of administrative provisions by court for change of circumstances.
Section 633A.2205 - Noncharitable trust with uneconomically low value.
Section 633A.2206 - Reformation — tax objectives.
Section 633A.2207 - Combination of trusts.
Section 633A.2208 - Division of trusts.
Section 633A.2301 - Rights of beneficiary, creditor, and assignee.
Section 633A.2302 - Spendthrift protection recognized.
Section 633A.2303 - Spendthrift trusts for the benefit of settlor.
Section 633A.2304 - Amount reachable by creditors or transferees of settlor.
Section 633A.2305 - Discretionary trusts — effect of standard.
Section 633A.2306 - Court action — trustee’s discretion.
Section 633A.2307 - Overdue mandatory distribution.
Section 633A.3101 - Competency to create, revoke, or modify a revocable trust.
Section 633A.3102 - Revocation or modification.
Section 633A.3103 - Other rights of settlor.
Section 633A.3104 - Claims against revocable trust.
Section 633A.3105 - Rights of and claims against holder of general power of appointment.
Section 633A.3106 - Children born or adopted after execution of a revocable trust.
Section 633A.3107 - Effect of divorce or dissolution.
Section 633A.3108 - Limitation on contest of revocable trust.
Section 633A.3110 - Notice to creditors, heirs, and surviving spouse.
Section 633A.3111 - Rights of trustee regarding claims in a probate administration.
Section 633A.3112 - Trustee’s liability for distributions.
Section 633A.3113 - Definitions — revocable trusts.
Section 633A.3114 - Allowance to surviving spouse.
Section 633A.3115 - Allowance to children who do not reside with surviving spouse.
Section 633A.4101 - Acceptance or declination to serve as trustee.
Section 633A.4102 - Trustee’s bond.
Section 633A.4103 - Actions by cotrustees.
Section 633A.4104 - Vacancy in office of trustee.
Section 633A.4105 - Filling vacancy.
Section 633A.4106 - Resignation of trustee.
Section 633A.4107 - Removal of trustee.
Section 633A.4108 - Delivery of property by former trustee.
Section 633A.4109 - Compensation of trustee.
Section 633A.4110 - Repayment for expenditures.
Section 633A.4111 - Notice of increased trustee’s fee.
Section 633A.4201 - Duty to administer trust — alteration by terms of trust.
Section 633A.4202 - Duty of loyalty — impartiality — confidential relationship.
Section 633A.4203 - Standard of prudence.
Section 633A.4204 - Costs of administration.
Section 633A.4205 - Special skills.
Section 633A.4206 - Delegation.
Section 633A.4207 - Directory powers.
Section 633A.4208 - Cotrustees.
Section 633A.4209 - Control and safeguarding of trust property.
Section 633A.4210 - Separation and identification of trust property.
Section 633A.4211 - Enforcement and defense of claims and actions.
Section 633A.4212 - Prior fiduciaries.
Section 633A.4213 - Duty to inform and account.
Section 633A.4214 - Duties with regard to discretionary powers.
Section 633A.4215 - Distributions in further trust.
Section 633A.4301 - Short title.
Section 633A.4302 - Standard of care — portfolio strategy — risk and return objectives.
Section 633A.4303 - Diversification.
Section 633A.4304 - Duties at inception of trusteeship.
Section 633A.4306 - Impartiality.
Section 633A.4307 - Investment costs.
Section 633A.4308 - Reviewing compliance.
Section 633A.4309 - Language invoking prudent investor rule.
Section 633A.4401 - General powers — fiduciary duties.
Section 633A.4402 - Specific powers of trustees.
Section 633A.4501 - Violations of duties — breach of trust.
Section 633A.4502 - Breach of trust — actions.
Section 633A.4503 - Breach of trust — liability.
Section 633A.4504 - Limitation of action against trustee.
Section 633A.4505 - Exculpation of trustee.
Section 633A.4506 - Beneficiary’s consent, release, or affirmance — nonliability of trustee.
Section 633A.4507 - Attorney fees and costs.
Section 633A.4601 - Personal liability — limitations.
Section 633A.4602 - Dissenting cotrustees.
Section 633A.4603 - Obligations of third parties.
Section 633A.4604 - Certification of trust.
Section 633A.4605 - Liability for wrongful taking, concealing, or disposing of trust property.
Section 633A.4606 - Interest as general partner.
Section 633A.4702 - Discretionary language prevails over other standard.
Section 633A.4703 - General order for abatement.
Section 633A.4704 - Simultaneous death.
Section 633A.4705 - Principal and income.
Section 633A.4706 - Small distributions to minors — payment.
Section 633A.4707 - Person causing death.
Section 633A.4802 - Liability limits of excluded fiduciary.
Section 633A.4803 - Death of settlor.
Section 633A.4804 - Excluded fiduciary’s liability for loss if trust protector appointed.
Section 633A.4805 - Powers of trust protector.
Section 633A.4806 - Submission to court jurisdiction — effect on trust director or trust protector.
Section 633A.4807 - Powers of trust protector incorporated by reference in will or trust instrument.
Section 633A.4809 - Powers of investment trust director.
Section 633A.4810 - Powers of distribution trust director.
Section 633A.5101 - Charitable purposes.
Section 633A.5102 - Application of cy pres.
Section 633A.5103 - Trust with uneconomically low value.
Section 633A.5104 - Interested persons — proceedings.
Section 633A.5105 - Charitable trusts.
Section 633A.5106 - Settlor — enforcement of charitable trust — designation.
Section 633A.5107 - Filing requirements.
Section 633A.5108 - Role of the attorney general.
Section 633A.6101 - Subject matter jurisdiction.
Section 633A.6102 - Principal place of administration of trust.
Section 633A.6103 - Jurisdiction over trustees and beneficiaries.
Section 633A.6104 - County of venue.
Section 633A.6105 - Transfer of jurisdiction.
Section 633A.6201 - Judicial intervention intermittent.
Section 633A.6202 - Petitions — purposes of proceedings.
Section 633A.6301 - Definition and applicability.
Section 633A.6302 - Representation by holders of powers.
Section 633A.6303 - Representation by fiduciaries and parents.
Section 633A.6304 - Representation by holders of similar interests.
Section 633A.6305 - Notice of judicial settlement.
Section 633A.6306 - Appointment of guardian ad litem.