§ 633a-4214

633A.4214 Duties with regard to discretionary powers. 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 notact in bad faith or in disregard of the purposes of the trust or the power. Absent an abuse ofdiscretion, 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 personalbenefit may exercise the power only in accordance with an ascertainable standard relatingto the trustee’s individual health, education, support, or maintenance within the meaning ofsection 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code of 1986. b.

ascertainable standard relatingto the trustee’s individual health, education, support, or maintenance within the meaning ofsection 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code of 1986. b. A trustee shall not exercise a power to make discretionary distributions to satisfy a legal 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 majority of the remaining trustees whose exercise of the power is not so limited or prohibited.If the power of all trustees is so limited or prohibited, the court may appoint a special fiduciarywith authority to exercise the power.

es whose exercise of the power is not so limited or prohibited.If the power of all trustees is so limited or prohibited, the court may appoint a special fiduciarywith authority to exercise the power. 99 Acts, ch 125, §60, 109C2001, §633.42142002 Acts, ch 1107, §13; 2003 Acts, ch 95, §16; 2003 Acts, ch 108, §109; 2005 Acts, ch 38, §54 CS2005, §633A.4214 Sat Dec 23 12:13:30 2023 Iowa Code 2024, Section 633A.4214 (18, 0)