Iowa Code

Iowa Code § 633.123 (2026)

Prudent investments — fiduciaries

✓ current as of July 2026
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1. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing property for the benefit of another, a fiduciary shall consider all of the following circumstances along with the circumstances identified in section 633A.4302, if applicable:

a. The length of time the fiduciary will have control over the estate assets and the anticipated costs of complying with the provisions of this section.

b. The unique nature of all of the following:

(1) The duties of a personal representative or conservator.

(2) The assets, income, expenses, and distribution requirements of the estate.

(3) The needs and rights of the beneficiaries or the protected person.

c. The express provisions of a will, codicil, or other controlling instrument.

2. The standards identified in this section shall be applied differently than similar standards for investment and management of trust property. Special consideration shall be given to the expected term of estates. Because some estates will have limited duration, there may be situations where an investment or a change in an investment is not warranted. 2007 Acts, ch 134, §7, 28; 2024 Acts, ch 1009, §58 Referred to in §633.642, 633F.7 \n

Notes of Decisions
Cited in 13 cases (1 in the last 5 years), 1970–2021 · leading case: In the Matter of the Conservatorship of Rose v. Alessio, Michael a. Leo, of the Est. of Rose v. Alessio v. First Cmty. Trust, N.A., 803 N.W.2d 656 (Iowa 2011).
In the Matter of the Conservatorship of Rose v. Alessio, Michael a. Leo, of the Est. of Rose v. Alessio v. First Cmty. Trust, N.A., 803 N.W.2d 656 (Iowa 2011). · cites it 10× “See Iowa Code § 633.123 (2) (stating that, due to the limited duration of some estates, “there may be situations where an investment or a change in an investment is not warranted”).”
Peoples Bank & Trust Co. v. Albertson, 257 N.W.2d 1 (Iowa 1977). · cites it 5× “Nothing contained in this Code shall be construed as authorizing any departure by a fiduciary from, or his variation of, the express terms or limitations set forth in any will, agreement, court order, or other instrument creating or defining the fiduciary’s duties and powers * *…”
Est. of Boyd v. Norman, 634 N.W.2d 630 (Iowa 2001). · cites it 2× “Norman cites our cases applying the prudent investor rule of Iowa Code section 633.123 as setting forth the principles of law that should govern his conduct in this matter.”
Cedar Mem'l Park Cemetery Ass'n v. Pers. Assocs. Inc., 178 N.W.2d 343 (Iowa 1970). · cites it 2× “(Section 633.123, Code of Iowa.) We need not consider the type of investment made since we hold the statute creating the trust permitted no investment.”
Hanson v. Minette, 461 N.W.2d 592 (Iowa 1990). · cites it 2× “Mismanagement. Hanson claims that Bankers Trust breached its fiduciary duty by failing to diversify the trust assets.”
In re Conservatorship of Peters, 447 N.W.2d 412 (Iowa Ct. App. 1989). · cites it 2× “” Iowa Code § 633.123 . More specifically, a conservator has the duty to protect and preserve an estate, to invest it prudently, and to account for it.”
Matter of Est. of Phoenix, 493 N.W.2d 79 (Iowa Ct. App. 1992). · cites it 2× “We conclude the executors’ actions did not violate the standards imposed by section 633.123. We affirm the district court’s denial of Elmer’s claim for lost interest.”
Brown v. Monticello State Bank of Monticello, 420 N.W.2d 475 (Iowa 1988). · cites it 2× “Iowa Code § 633.123 (1987) (duty of conservator to conserve and reinvest the property of the ward with prudence); In re Guardianship of Laufert, 247 Iowa 1362,1361 , 79 N.”
Matter of Anne Hamilton Killian Trust, 519 N.W.2d 409 (Iowa Ct. App. 1994). · cites it 12× “Appellant insists the trustee's actions violate the prudent person investment rule as set forth in Iowa code section 633.123 (1991). Finally appellant claims the district court erred in approving the various applications for attorney fees and expenses submitted by the trustee.”
Matter of Est. of Cutler, 368 N.W.2d 724 (Iowa Ct. App. 1985). “It is obvious *729 that Henstorf wholly failed to carry out this trust when he kept large amounts of money for years on deposit in an account that earned nothing. Only slightly better were the investments in 6% interest-bearing securities when his own bank was paying from 9% to…”
Mary Elizabeth Slezak v. Carl W. Matherly (Iowa Ct. App. 2021). · cites it 6× “Iowa Code § 633.123 (1977). 1. Investments by fiduciaries.”
Nellie Callahan Scholarship Fund v. Comm'r, 73 T.C. 626 (1980). “Petitioner contends that it is not a private foundation because it is a supporting organization within the meaning of section 509(a)(3) .”
— Iowa Code § 633.123(1) — 1 case
Peoples Bank & Trust Co. v. Albertson, 257 N.W.2d 1 (Iowa 1977). “Nothing contained in this Code shall be construed as authorizing any departure by a fiduciary from, or his variation of, the express terms or limitations set forth in any will, agreement, court order, or other instrument creating or defining the fiduciary’s duties and powers * *…”
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