§ 633a-4202

633A.4202 Duty of loyalty — impartiality — confidential relationship. 1. A trustee shall administer the trust solely in the interest of the beneficiaries, and shall act with due regard to their respective interests. 2. Any transaction involving the trust which is affected by a material conflict between the trustee’s fiduciary and personal interests is voidable by a beneficiary affected by thetransaction unless one of the following applies: a. The transaction was expressly authorized by the terms of the trust.b. The beneficiary consented to or affirmed the transaction or released the trustee from liability as provided in section 633A.4506. c. The transaction is approved by the court after notice to interested persons.3. A transaction affected by a material conflict between personal and fiduciary interests includes any sale, encumbrance, or other transaction involving the trust property entered intoby the trustee, the spouse, descendant, agent, or attorney of a trustee, or corporation or otherenterprise in which the trustee has a substantial beneficial interest. 4. A transaction not involving trust property between a trustee and a beneficiary which occurs during the existence of the

otherenterprise in which the trustee has a substantial beneficial interest. 4. A transaction not involving trust property between a trustee and a beneficiary which occurs during the existence of the trust or while the trustee retains significant influence overthe beneficiary and from which the trustee obtains an advantage is an abuse of a confidentialrelationship unless the trustee establishes that the transaction was fair. 5. This section does not apply to any of the following:a. An agreement between a trustee and a beneficiary relating to the appointment of the trustee. b. The payment of compensation to the trustee, whether by agreement, the terms of the trust, or this trust code. c. A transaction between a trust and another trust, decedent’s or conservatorship estate of which the trustee is a fiduciary if the transaction is fair to the beneficiaries of the trust. d. An investment by a trustee in securities of an investment company or investment trust to which the trustee, or its affiliate, provides services in a capacity other than as trustee ifthe investment complies with the prudent investor rule.

es of an investment company or investment trust to which the trustee, or its affiliate, provides services in a capacity other than as trustee ifthe investment complies with the prudent investor rule. The trustee may be compensated bythe investment company or investment trust for providing services from fees charged to thetrust if the trustee provides annual notice and a copy of the trustee’s annual report, includingthe rate and method by which the trustee’s compensation was determined, to the personsspecified in section 633A.4213. e. A deposit of trust money in a regulated financial service institution operated by the trustee. 99 Acts, ch 125, §48, 109C2001, §633.42022002 Acts, ch 1107, §10; 2005 Acts, ch 38, §54, 55CS2005, §633A.4202 Sat Dec 23 12:13:25 2023 Iowa Code 2024, Section 633A.4202 (18, 0)