633F.10 Determination of incapacity — effect.
1. The custodial trustee shall administer the custodial trust as for an incapacitated beneficiary in any of the following circumstances:
a. The custodial trust was created under section 633F.5.
b. The transferor has so directed in the instrument creating the custodial trust.
c. The custodial trustee has determined that the beneficiary is incapacitated.
2. A custodial trustee may determine that the beneficiary is incapacitated in reliance upon any of the following:
a. Previous direction or authority given by the beneficiary while not incapacitated, including direction or authority pursuant to a durable power of attorney.
b. Written documentation from the beneficiary’s physician.
c. Other persuasive evidence.
3. If a custodial trustee for an incapacitated beneficiary reasonably concludes that the beneficiary’s incapacity has ceased, or that circumstances concerning the beneficiary’s ability to manage property and business affairs have changed since the creation of a custodial trust directing administration as for an incapacitated beneficiary, the custodial trustee may administer the trust as for a beneficiary who is not incapacitated.
4. On petition of the beneficiary, the custodial trustee, or other person interested in the custodial trust property or the welfare of the beneficiary, the court shall determine whether the beneficiary is incapacitated.
5. Absent determination of incapacity of the beneficiary under subsection 2 or 4, a custodial trustee who has reason to believe that the beneficiary is incapacitated shall administer the custodial trust in accordance with the provisions of this chapter applicable to an incapacitated beneficiary.
6. Incapacity of a beneficiary does not terminate the custodial trust, any designation of a successor custodial trustee, rights or powers of the custodial trustee, or any immunities of third persons acting on instructions of the custodial trustee.
2021 Acts, ch 8, §10
NEW section
Structure Iowa Code
Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES
Chapter 633F - IOWA UNIFORM CUSTODIAL TRUST ACT
Section 633F.2 - Custodial trust — general.
Section 633F.3 - Custodial trustee for future payment or transfer.
Section 633F.4 - Form and effect of receipt and acceptance by custodial trustee — jurisdiction.
Section 633F.5 - Transfer to custodial trustee by fiduciary or obligor — facility of payment.
Section 633F.6 - Single beneficiaries — separate trust accounts.
Section 633F.7 - General duties of custodial trustee.
Section 633F.8 - General powers of custodial trustee.
Section 633F.9 - Use of custodial trust property.
Section 633F.10 - Determination of incapacity — effect.
Section 633F.11 - Exemption of third person from liability.
Section 633F.12 - Liability to third person.
Section 633F.14 - Expenses, compensation, and bond of custodial trustee.
Section 633F.16 - Limitations of action against custodial trustee.
Section 633F.17 - Distribution on termination.
Section 633F.18 - Methods and forms for creating custodial trusts.
Section 633F.19 - Applicable law.
Section 633F.20 - Uniformity of application and construction.