§ 633A.2307 — Overdue mandatory distribution

Iowa § 633A.2307

• Jurisdiction: Iowa
• Title XV: JUDICIAL BRANCH AND JUDICIAL PROCEDURES
• Ch. 633A: IOWA TRUST CODE

Text

1. A creditor or assignee of a beneficiary may reach a mandatory distribution of income or
principal, including a distribution upon termination of the trust, if the trustee has not made
the distribution to the beneficiary within a reasonable time after the required distribution
date.
2. Forthepurposesofthissection, “mandatorydistribution”meansadistributionrequired
by the express terms of the trust of any of the following:
a. All of the income, net income, or principal of the trust.
b. A fraction or percentage of the income or principal of the trust.
c. A specific dollar amount from the trust.
3. A distribution that is subject to a condition shall not be considered a mandatory
distribution.
4. If a creditor or assignee of a beneficiary is permitted to reach a mandatory distribution
under this section, the sole remedy of the creditor or assignee shall be to apply to the court
§633A.2307, IOWA TRUST CODE 14
having jurisdiction of the trust after a reasonable period of time has expired, for a judgment
orderingthetrusteetopaytothecreditorortheassigneeasumofmoneyequaltothelesserof
the amount of the debt or assignment, or the amount of the mandatory distribution described
in subsection 2. Any other remedy, including but not limited to attachment or garnishment of
any interest in the trust, recovery of court costs or attorney fees, or placing a lien of any type
on any trust property or on the interest of any beneficiary in the trust, shall not be permitted
or ordered by any court. Any writing signed by the beneficiary, allowing any remedy other
than payment of the mandatory distribution not made to the beneficiary within a reasonable
time after required distribution date, shall be void and shall not be enforced by any court.