2009 Iowa Code
Title 15 - Judicial Branch and Judicial Procedures
Subtitle 4 - Probate - Fiduciaries
CHAPTER 633A - IOWA TRUST CODE
633A.4202 - DUTY OF LOYALTY -- IMPARTIALITY -- CONFIDENTIAL RELATIONSHIP.

        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 the transaction
      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 into by the trustee,
      the spouse, descendant, agent, or attorney of a trustee, or
      corporation or other enterprise 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 over the beneficiary
      and from which the trustee obtains an advantage is an abuse of a
      confidential relationship 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 if the
      investment complies with the prudent investor rule.  The trustee may
      be compensated by the investment company or investment trust for
      providing services from fees charged to the trust if the trustee
      provides annual notice and a copy of the trustee's annual report,
      including the rate and method by which the trustee's compensation was
      determined, to the persons specified 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, 109
         C2001, §633.4202
         2002 Acts, ch 1107, §10; 2005 Acts, ch 38, §54, 55
         CS2005, §633A.4202