Iowa § 633A.4214 Duties with regard to discretionary powers

Iowa Statutes

§ 633A.4214 — Duties with regard to discretionary powers

Iowa § 633A.4214

Title XVJUDICIAL BRANCH AND JUDICIAL PROCEDURES

Ch. 633AIOWA TRUST CODE

This text of Iowa § 633A.4214 (Duties with regard to discretionary powers) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 633A.4214 (2026).

Text

1.A trustee shall exercise a discretionary power within the bounds of reasonable judgment and in accordance with applicable fiduciary principles and the terms of the trust.

2.Notwithstanding the use of such terms as “absolute”, “sole”, or “uncontrolled” in the grant of discretion, a trustee shall act in accordance with fiduciary principles and shall not act in bad faith or in disregard of the purposes of the trust or the power. Absent an abuse of discretion, a trustee’s exercise of discretion is not subject to control by a court.

3.Subject to paragraph “c” and unless the terms of the trust expressly indicate that a rule in this subsection does not apply, all of the following shall apply:

a.A person other than a settlor who is a beneficiary and trustee of a trust that confers on the tru

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1. A trustee shall exercise a discretionary power within the bounds of reasonable
judgment and in accordance with applicable fiduciary principles and the terms of the trust.
2. Notwithstanding the use of such terms as “absolute”, “sole”, or “uncontrolled” in the
grant of discretion, a trustee shall act in accordance with fiduciary principles and shall not
act in bad faith or in disregard of the purposes of the trust or the power. Absent an abuse of
discretion, a trustee’s exercise of discretion is not subject to control by a court.
3. Subject to paragraph “c” and unless the terms of the trust expressly indicate that a rule
in this subsection does not apply, all of the following shall apply:
a. A person other than a settlor who is a beneficiary and trustee of a trust that confers
on the trustee the power to make discretionary distributions to or for the trustee’s personal
benefit may exercise the power only in accordance with an ascertainable standard relating
to the trustee’s individual health, education, support, or maintenance within the meaning of
section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code of 1986.
b. Atrusteeshallnotexerciseapowertomakediscretionarydistributionstosatisfyalegal
obligation of support that the trustee personally owes to another person.
c. This subsection does not apply to the following:
(1) A power held by the settlor’s spouse who is the trustee of a trust for which a marital
deduction, as defined in section 2056(b)(5) or 2523(e) of the Internal Revenue Code of 1986,
was previously allowed.
(2) A trust that may be revoked or amended by the settlor.
(3) A trust, if contributions to the trust qualify for an annual exclusion under section
2503(c) of the Internal Revenue Code of 1986.
4. A power whose exercise is limited or prohibited by subsection 3 may be exercised by a
majorityoftheremainingtrusteeswhoseexerciseofthepowerisnotsolimitedorprohibited.
Ifthepowerofalltrusteesissolimitedorprohibited, thecourtmayappointaspecialfiduciary
with authority to exercise the power.