Iowa Code 633A.3112 – Trustee’s liability for distributions
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1. A trustee who distributes trust assets without making adequate provisions for the payment of debts and charges that are known or reasonably ascertainable at the time of the distribution shall be jointly and severally liable with the beneficiaries to the extent of the distributions made.
Terms Used In Iowa Code 633A.3112
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Trustee: A person or institution holding and administering property in trust.
2. A trustee shall be entitled to indemnification from the beneficiaries for all amounts paid for debts and charges under this section, to the extent of distributions made.