Iowa Code 633A.4506 – Beneficiary’s consent, release, or affirmance — nonliability of trustee
Current as of: 2023 | Check for updates
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1. A beneficiary shall not hold a trustee liable for a breach of trust if the beneficiary does any of the following:
a. Consents to the conduct constituting the breach.
b. Releases the trustee from liability for the breach.
c. Affirms the transaction constituting the breach.
Terms Used In Iowa Code 633A.4506
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Trustee: A person or institution holding and administering property in trust.
2. A beneficiary may hold a trustee liable for breach of trust despite a consent, release, or affirmance by the beneficiary if, at the time of the consent, release, or affirmance, all of the following applied:
a. The beneficiary did not know of the beneficiary’s rights.
b. The beneficiary did not know the material facts known to the trustee or which the trustee should have known.
c. The trustee did not reasonably believe that the beneficiary knew the beneficiary’s rights and that the beneficiary knew material facts known to the trustee or which the trustee should have known.
3. A beneficiary may hold a trustee liable for breach of a trust despite a consent, release, or affirmance by the beneficiary if the consent, release, or affirmance was induced by improper conduct of the trustee.