LIABILITY OF TRUSTEES TO BENEFICIARIES

Iowa Code tit. XV, ch. 633A, subch. IV, pt. 5

in effect

Iowa Code § 633A.4501 Violations of duties — breach of trust.

633A.4501. Violations of duties — breach of trust. 1. A violation by a trustee of a duty the trustee owes a beneficiary is a breach of trust. 2. The remedies of a beneficiary for breach of trust are exclusively equitable and any action shall be brought in a court of equity. 99 Acts, ch 125, §73, 109C2001, §633.45012005 Acts, ch 38, §54CS2005, §633A.4501

Iowa Code § 633A.4502 Breach of trust — actions.

633A.4502. Breach of trust — actions. 1. Except as provided in section 633A.4213, to remedy a breach of trust which has occurred or may occur, a beneficiary or cotrustee of the trust may request the court to do any of the following: a. Compel the trustee to perform the trustee’s duties. b. Enjoin the trustee from committing a breach of trust. c. Compel the trustee to redress a breach of trust by payment of money or otherwise. d. Appoint a receiver or temporary trustee to take possession of the trust property and administer the trust. e. Remove the trustee. f. Reduce or deny compensation to the trustee. g. Subject to section 633A.4603, nullify an act of the trustee, impose an equitable lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds. h. Order any other appropriate relief. 2. The exception created in subsection 1 of this section does not apply to any trust created prior to July 1, 2002. 99 Acts, ch 125, §74, 109 C2001, §633.4502 2002 Acts, ch 1107, §16; 2005 Acts, ch 38, §54, 55 CS2005, §633A.4502 2009 Acts, ch 52, §10; 2010 Acts, ch 1137, §8

Iowa Code § 633A.4503 Breach of trust — liability.

633A.4503. Breach of trust — liability. A beneficiary may charge a trustee who commits a breach of trust with the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred, or, if greater, the amount of profit lost by reason of the breach. 99 Acts, ch 125, §75, 109C2001, §633.45032005 Acts, ch 38, §54CS2005, §633A.4503

Iowa Code § 633A.4504 Limitation of action against trustee.

633A.4504. Limitation of action against trustee. 1. Unless previously barred by adjudication, consent, or other limitation, a claim against a trustee for breach of trust is barred as to a beneficiary who has received an accounting pursuant to section 633A.4213 or other report that adequately discloses the existence of the claim, unless a proceeding to assert the claim is commenced within one year after the receipt of the accounting or report. An accounting or report adequately discloses the existence of a claim if it provides sufficient information so that the beneficiary knows of the claim or reasonably should have inquired into its existence. 2. For the purpose of subsection 1, a beneficiary is deemed to have received an accounting or report in the following instances: a. In the case of an adult who is reasonably capable of understanding the accounting or report, if it is received by the adult personally. b. In the case of an adult who is not reasonably capable of understanding the accounting or report, if it is received by the adult’s legal representative, including a guardian ad litem or other person appointed for this purpose. c. In the case of a minor, if it is received by the minor’s guardian or conservator or, if the minor does not have a guardian or conservator, if it is received by a parent of the minor who does not have a conflict of interest. 3. Any claim for breach of trust against a trustee who has presented an accounting or report to a beneficiary more than one year prior to July 1, 2000, shall be time barred unless some exception stated in this section applies which tolls the statute. Any claim arising under this section within one year of July 1, 2000, shall be time barred after one year unless an exception applies to toll the statute. 4. For the purposes of this section, “report” means a document including but not limited to a letter, delivered by or on behalf of the trustee to a beneficiary of the trust. 99 Acts, ch 125, §76, 109; 2000 Acts, ch 1150, §25 C2001, §633.4504 2005 Acts, ch 38, §54 CS2005, §633A.4504 2012 Acts, ch 1123, §28; 2013 Acts, ch 33, §7, 9

Iowa Code § 633A.4505 Exculpation of trustee.

633A.4505. Exculpation of trustee. A provision in the terms of the trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it does either of the following: 1. Relieves a trustee of liability for breach of trust committed intentionally, with gross negligence, in bad faith, or with reckless indifference to the interest of the beneficiary, or for any profit derived by the trustee from the breach. 2. Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor. 99 Acts, ch 125, §77, 109C2001, §633.45052005 Acts, ch 38, §54CS2005, §633A.4505

Iowa Code § 633A.4506 Beneficiary’s consent, release, or affirmance — nonliability of trustee.

633A.4506. Beneficiary’s consent, release, or affirmance — nonliability of trustee. 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. 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. 99 Acts, ch 125, §78, 109C2001, §633.45062002 Acts, ch 1107, §17, 18; 2003 Acts, ch 95, §17; 2005 Acts, ch 38, §54CS2005, §633A.4506

Iowa Code § 633A.4507 Attorney fees and costs.

633A.4507. Attorney fees and costs. In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney fees, to any party, to be paid by another party or from the trust that is the subject of the controversy. 2004 Acts, ch 1015, §29C2005, §633.45072005 Acts, ch 38, §54CS2005, §633A.4507

Source: Iowa Legislature (legis.iowa.gov)URL: https://www.legis.iowa.gov/law/iowaCode/sections?codeChapter=633A&year=2026Fetched: 10/20/2026