COMPLEX WILL WITH TESTAMENTARY TRUST

(Iowa – Draft Template)

[// GUIDANCE: This template is intentionally comprehensive and assumes moderate-to-high net worth, minor or spendthrift beneficiaries, and a desire for long-term asset protection. Delete or tailor any provisions that are unnecessary or overly burdensome for the client’s specific circumstances.]

TABLE OF CONTENTS

1. DOCUMENT HEADER
2. DEFINITIONS
3. OPERATIVE PROVISIONS
       3.1 Revocation of Prior Instruments
       3.2 Appointment of Personal Representative
       3.3 Payment of Debts, Expenses, and Taxes
       3.4 Specific & General Bequests
       3.5 Residue and Creation of Testamentary Trust
       3.6 Guardian Nomination (Optional)
4. REPRESENTATIONS & WARRANTIES
5. COVENANTS & RESTRICTIONS
6. DEFAULT & REMEDIES
7. RISK ALLOCATION
8. DISPUTE RESOLUTION
9. GENERAL PROVISIONS
10. EXECUTION BLOCK (with Self-Proving Affidavit)

1. DOCUMENT HEADER

1.1 Title

LAST WILL AND TESTAMENT AND TESTAMENTARY TRUST OF [TESTATOR FULL LEGAL NAME]

1.2 Parties

a. “Testator”: [TESTATOR FULL LEGAL NAME], currently domiciled at [ADDRESS], County of [COUNTY], State of Iowa.
b. “Personal Representative”: [PR NAME] (also known in Iowa as “Executor”).
c. “Trustee”: [TRUSTEE NAME].
d. “Successor Personal Representative/Trustee”: [SUCCESSOR NAME].
e. “Guardian(s) of Minor Children”: [GUARDIAN NAME(S)] (if applicable).

1.3 Recitals

A. Testator is of legal age, of sound mind, and under no duress or undue influence.
B. Testator desires to dispose of the Testator’s property at death, establish a testamentary trust for designated beneficiaries, and appoint fiduciaries to administer the estate and trust.
C. This instrument is executed pursuant to and shall be governed by the laws of the State of Iowa, including but not limited to the Iowa Probate Code and Iowa Trust Code.

1.4 Effective Date & Governing Law

This Will shall take effect upon the Testator’s death and shall be construed, regulated, and enforced in accordance with the laws of the State of Iowa (collectively, “state_probate_trust_law”).

2. DEFINITIONS

For ease of reference, the following capitalized terms shall have the meanings set forth below. Any term used but not defined herein shall have the meaning ascribed by applicable Iowa law.

“Accounting” – A written report of all trust receipts, disbursements, and current asset valuations.
“Beneficiary” – Any person or entity entitled to receive distributions under this Will or the Trust.
“Child” or “Children” – The Testator’s lineal descendants in the first degree, whether now living or hereafter born or adopted.
“Discretionary Distribution” – A distribution of income and/or principal made within the Trustee’s sole and absolute discretion for the Beneficiary’s health, education, maintenance, or support (“HEMS Standard”).
“Fiduciary” – A Personal Representative, Trustee, Successor Personal Representative, Successor Trustee, or Guardian appointed herein.
“HEMS” – Health, education, maintenance, and support as interpreted under Iowa law and federal tax principles.
“Income” & “Principal” – As determined under the Iowa Uniform Principal and Income Act.
“Personal Representative” – Executor of the Testator’s probate estate.
“Qualified Trustee” – An individual at least 18 years old and not under legal disability, or a corporate fiduciary authorized to act in Iowa.
“Residue” – All property remaining in the Testator’s probate estate after payment of expenses, taxes, and specific/general bequests.
“Trust” – The testamentary trust created in Section 3.5 (the “Family Trust”).
“Trust Assets” – All property transferred to or otherwise constituting the Trust corpus from time to time.

3. OPERATIVE PROVISIONS

3.1 Revocation of Prior Instruments

I hereby revoke all prior wills, codicils, and testamentary dispositions previously executed by me.

3.2 Appointment of Personal Representative

I nominate [PR NAME] as Personal Representative. If [PR NAME] fails to qualify or ceases to serve, [SUCCESSOR PR NAME] shall serve.

[// GUIDANCE: Insert corporate fiduciary language or bonding waiver if desired.]

3.3 Payment of Debts, Expenses, and Taxes

a. My Personal Representative shall first pay all enforceable debts, funeral expenses, and testamentary administration costs.
b. All estate, inheritance, generation-skipping transfer, and similar taxes attributable to my estate or any trust created herein shall be paid from the Residue without apportionment, unless expressly directed otherwise herein.

3.4 Specific & General Bequests

a. Tangible Personal Property: I give all items listed in a duly executed separate written memorandum, if any, pursuant to Iowa law, to the recipients designated therein.
b. Cash Bequests:
i. [AMOUNT] to [BENEFICIARY NAME].
ii. [AMOUNT] to [CHARITY NAME] (EIN [ ]) for general purposes.
[// GUIDANCE: Delete or supplement as needed. For charitable gifts, confirm compliance with 26 U.S.C. § 2055.]

3.5 Residue and Creation of Testamentary Trust (“Family Trust”)

a. Transfer to Trust. I devise and bequeath all Residue to the Trustee, IN TRUST, to be held, administered, and distributed as provided below.
b. Purpose. The Trust is established to provide prudent, long-term management and protection of Trust Assets for the benefit of my beneficiaries, in accordance with Iowa Trust Administration Rules and fiduciary standards.
c. Beneficiaries. The primary Beneficiaries are my Children, defined herein.
d. Distributions.
i. Mandatory Income: The Trustee shall distribute all net Income, if any, among my Children in equal shares, at least annually.
ii. Discretionary Principal: The Trustee may, in the Trustee’s sole and absolute discretion, make Discretionary Distributions of Principal for HEMS.
iii. Education Funding: The Trustee may pay, directly to the educational institution or the Beneficiary, reasonable education expenses.
e. Age-Vesting & Final Distribution. Each Beneficiary’s share shall be distributed outright and free of trust as follows:
• One-third (1/3) upon attaining age 25;
• One-half (½) of the then-remaining share at age 30;
• Remainder at age 35.
Until complete distribution, the undistributed share shall remain in Trust.
f. Spendthrift & Non-Assignment. The Beneficiary’s interest shall not be subject to assignment, anticipation, attachment, garnishment, or other creditor process.
g. Termination. The Trust shall terminate upon the earlier of (i) final distribution under Section 3.5(e), or (ii) 21 years after the death of the last surviving descendant of mine who was living at my death, whichever occurs first, consistent with the Iowa rule against perpetuities savings clause.

3.6 Guardian Nomination (Optional)

If at my death any minor Child is without a living parent having legal custody, I nominate [GUARDIAN NAME(S)] to serve as Guardian(s) of the person and property of such minor Child.

4. REPRESENTATIONS & WARRANTIES

4.1 Testator. I represent and warrant that:
a. I am at least 18 years of age and a resident of Iowa;
b. I am executing this Will voluntarily and understand its provisions; and
c. All information provided to the scrivener regarding my assets and familial relationships is true, complete, and accurate to the best of my knowledge.

4.2 Trustee. By signing the Acknowledgment below, each Trustee represents and warrants that:
a. The Trustee is a Qualified Trustee;
b. The Trustee accepts the Trust and fiduciary duties imposed herein;
c. The Trustee will administer the Trust in good faith, in accordance with the prudent investor rule and applicable Iowa fiduciary standards; and
d. The Trustee is not currently insolvent or under any legal disability.

5. COVENANTS & RESTRICTIONS

5.1 Fiduciary Covenants. Each Fiduciary shall:
a. Exercise ordinary care, diligence, and prudence consistent with Iowa Code Chapter 633A;
b. Provide an Accounting at least annually and upon reasonable request of any competent adult Beneficiary;
c. Keep Trust records for a minimum of seven (7) years;
d. Furnish notice of Trust existence, Trustee identity, and right to receive information to Beneficiaries as required by Iowa law.

5.2 Investment Restrictions. Absent court order or unanimous written consent of all competent adult Beneficiaries, the Trustee shall not:
a. Self-deal or engage in transactions that create a conflict of interest;
b. Invest in margin accounts, derivatives, or other high-risk instruments inconsistent with the prudent investor rule;
c. Make loans to, or guarantee obligations of, any Trustee or Beneficiary.

5.3 Prohibited Acts. No Fiduciary may:
a. Alter or amend dispositive provisions of this Will or Trust;
b. Transfer fiduciary duties to an unqualified individual or entity;
c. Waive bond if bond is required by Iowa court order (unless expressly waived herein).

6. DEFAULT & REMEDIES

6.1 Fiduciary Events of Default. The following constitute Events of Default:
a. Breach of fiduciary duty, gross negligence, or willful misconduct;
b. Failure to provide required Accountings within sixty (60) days of written demand;
c. Insolvency or conviction of a crime involving dishonesty.

6.2 Notice & Cure. Any adult Beneficiary or co-Fiduciary may provide written notice specifying the default. The Trustee shall have thirty (30) days to cure such default, unless the default is incapable of cure.

6.3 Remedies. Upon an uncured Event of Default, a Beneficiary or co-Fiduciary may:
a. Petition the Iowa probate court for removal and surcharge;
b. Seek injunctive relief to protect Trust Assets;
c. Recover attorney fees and costs from the Trustee personally, to the extent determined by the court to be attributable to the Trustee’s breach.

7. RISK ALLOCATION

7.1 Trustee Indemnification. Except for acts of gross negligence, willful misconduct, or bad faith, the Trustee shall be indemnified and held harmless from and against any and all liabilities, claims, and expenses (including reasonable attorney fees) incurred in the administration of the Trust, but solely to the extent of Trust Assets (“trustee_indemnity”).

7.2 Limitation of Liability. The Trustee’s liability to Beneficiaries or third parties shall in no event exceed the total value of the Trust Assets under the Trustee’s control at the time the liability arises (“trust_assets”).

7.3 Insurance. The Trustee is authorized, but not required, to procure fiduciary liability insurance payable from Trust Assets.

7.4 Force Majeure. The Personal Representative or Trustee shall not be liable for failure to perform duties when such failure is due to events beyond reasonable control, including, but not limited to, war, terrorism, natural disaster, or changes in applicable law that materially affect administration.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Will and the Trust shall be governed by and construed under the laws of the State of Iowa (“state_probate_trust_law”).

8.2 Forum Selection. Exclusive jurisdiction lies with the probate division of the Iowa District Court in the county in which this Will is admitted to probate (“state_probate_court”).

8.3 Arbitration. The parties and Beneficiaries acknowledge that binding arbitration of probate matters is not available under Iowa law. Accordingly, any dispute shall be resolved exclusively by the Iowa courts.

8.4 Jury Waiver. Jury trials are not available in ordinary probate proceedings in Iowa; therefore, this instrument does not include a jury waiver clause (“no_jury_probate”).

8.5 Injunctive Relief. Nothing herein shall limit the ability of any party to seek emergency or injunctive relief from the probate court for Trust enforcement purposes (“trust_enforcement”).

9. GENERAL PROVISIONS

9.1 Amendment & Revocation. I reserve the right to amend or revoke this Will in whole or in part by a duly executed codicil or subsequent will, consistent with Iowa Code § 633.279. After my death, no amendment is permitted except by court order for reformation to correct a clear mistake of fact or law.

9.2 Assignment & Delegation. No Beneficiary may assign, transfer, or encumber any interest hereunder, whether voluntarily or involuntarily, prior to actual distribution.

9.3 Successors & Assigns. All references herein to Fiduciaries and Beneficiaries shall include their lawful successors and assigns.

9.4 Severability. If any provision of this Will or Trust is adjudicated invalid or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to carry out my intent.

9.5 Integration. This instrument, together with any duly executed separate written memorandum of personal property, constitutes my entire Last Will and Testament and supersedes any prior inconsistent statements or documents.

9.6 Counterparts & Electronic Signatures. Counterpart execution is permissible. However, for purposes of probate admission, at least one original ink-signed document must be retained. Electronic signatures are not presently accepted for wills in Iowa.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, I, [TESTATOR FULL LEGAL NAME], the Testator, have signed, published, and declared this instrument to be my Last Will and Testament and Testamentary Trust, this ___ day of _, 20 (“Effective Date”).

[TESTATOR FULL LEGAL NAME], Testator

ATTESTATION CLAUSE

We, the undersigned witnesses, declare that on the date indicated above the Testator, in our presence, signed and declared this instrument to be the Testator’s Will and requested us to act as witnesses; that we signed this Will as witnesses in the presence of the Testator and of each other; and that to the best of our knowledge the Testator is at least 18 years of age, of sound mind, and under no undue influence.

SELF-PROVING AFFIDAVIT

(State of Iowa, County of [COUNTY])

BEFORE ME, the undersigned authority, on this day personally appeared [TESTATOR], [WITNESS #1], and [WITNESS #2], all known to me and whose names are subscribed to the foregoing Will, and, being duly sworn, each declared to me:

1. That the Testator executed the instrument as the Testator’s Will;
2. That the Testator signed (or acknowledged the Testator’s signature) in the presence of both witnesses;
3. That both witnesses signed the Will in the presence of the Testator and each other;
4. That the Testator was at least 18 years of age, of sound mind, and under no undue influence.

Subscribed and sworn before me on this ___ day of _, 20.

Notary Public in and for the State of Iowa
My commission expires: ____

TRUSTEE ACKNOWLEDGMENT

I, [TRUSTEE NAME], hereby accept the appointment as Trustee under this Will, acknowledge my fiduciary duties, and agree to administer the Trust in accordance with its terms and Iowa law.

Signature of Trustee Date

[// GUIDANCE:
1. Review Iowa Code §§ 633.279–633.295 (execution requirements) and Iowa Code ch. 633A (trust administration) before finalizing.
2. Consider adding a Schedule of Assets for ease of funding and probate valuation.
3. If minor or disabled beneficiaries are anticipated, consider a Special Needs Trust sub-trust to preserve government benefits.
4. Obtain tax counsel regarding GST and estate tax planning if estate size may exceed federal exclusion thresholds.]

END OF DOCUMENT