633F.17 Distribution on termination.
1. Upon termination of a custodial trust, the custodial trustee shall transfer the unexpended custodial trust property:
a. To the beneficiary, if not incapacitated or deceased.
b. To the beneficiary’s legal representative or other recipient designated by the court for an incapacitated beneficiary.
c. Upon the beneficiary’s death, in the following order:
(1) As last directed in a writing signed by the deceased beneficiary while not incapacitated and received by the custodial trustee during the life of the deceased.
(2) As designated in the instrument creating the custodial trust.
(3) To the estate of the deceased beneficiary.
2. The direction to the custodial trustee by a beneficiary who is not incapacitated, for distribution on termination of the custodial trust may be in any written form clearly identifying the distributee and may be substantially similar to the following:
I, ________________ (name of beneficiary) hereby direct _____________________ (name of custodial trustee) as custodial trustee, to transfer and pay the unexpended balance of the custodial trust property of which I am beneficiary to __________________ as distributee on the termination of the trust at my death. In the event of the prior death of _________ above named as distributee, I designate ________________ as distributee of the custodial trust property.
Signed ______________________ (signature of beneficiary).
Date ____________________
Receipt Acknowledged: ____________________ (signature of custodial trustee)
Date ___________________
3. If, when the custodial trust would otherwise terminate, the distributee is incapacitated, the custodial trust continues for the use and benefit of the distributee as beneficiary until the incapacity is removed or the custodial trust is otherwise terminated.
4. Death of a beneficiary does not terminate the power of the custodial trustee to discharge obligations of the custodial trustee or beneficiary incurred before the termination of the custodial trust.
2021 Acts, ch 8, §17
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.