633A.2208 Division of trusts. 1. Without approval of a court, a trustee may divide a trust into two or more separate trusts with substantially similar terms if the division will not defeat or substantially impairthe accomplishment of the trust purposes or the rights of the beneficiaries unless the trust isa court reporting trust. 2. On petition by a trustee or beneficiary, the court may divide a trust into two or more separate trusts, whether or not their terms are similar, if the court determines that dividingthe trust is in the best interest of the beneficiaries and will not defeat or substantially impairthe accomplishment of the trust purposes or the rights of the beneficiaries. To facilitate thedivision, the trustee may divide the trust assets in kind, by pro rata or non-pro rata division,or by any combination of the methods. 3. By way of illustration and without limitation, a trust may be divided pursuant to this section to allow a trust to qualify as a marital deduction trust for tax purposes, as a qualifiedsubchapter S trust for federal income tax purposes, as a separate trust for federal generationskipping tax purposes, or for any other federal or state income, estate, for tax purposes, as a qualifiedsubchapter S trust for federal income tax purposes, as a separate trust for federal generationskipping tax purposes, or for any other federal or state income, estate, excise, or inheritancetax benefit, or to facilitate the administration of a trust. 99 Acts, ch 125, §21, 109; 2000 Acts, ch 1150, §13C2001, §633.22082005 Acts, ch 38, §37, 54CS2005, §633A.2208Referred to in §633A.4805 Sat Dec 23 12:13:10 2023 Iowa Code 2024, Section 633A.2208 (18, 0)
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