Iowa Code

Iowa Code § 633A.4202 (2026)

Duty of loyalty — impartiality — confidential relationship

✓ current as of July 2026
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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 \n Tue Dec 09 21:58:51 2025 Iowa Code 2026, Chapter 633A (54, 0) §633A.4202, IOWA TRUST CODE 26\n\n C2001, §633.4202 2002 Acts, ch 1107, §10; 2005 Acts, ch 38, §54, 55 CS2005, §633A.4202 \n

Notes of Decisions
Cited in 12 cases (6 in the last 5 years), 2007–2025 · leading case: In the Matter of Trust T-1 of Mary Faye Trimble, Judith R. Cunningham, Tr., 826 N.W.2d 474 (Iowa 2013).
In the Matter of Trust T-1 of Mary Faye Trimble, Judith R. Cunningham, Tr., 826 N.W.2d 474 (Iowa 2013). “§ 633A.4202(1). The difficulty here is that for the predeath period at issue, Cunningham owed her duties to the settlor, Trim-ble, not the beneficiaries.”
Turner v. Iowa State Bank & Trust Co. of Fairfield, 743 N.W.2d 1 (Iowa 2007). “§ 633A.4202; the duty to inform and account, id.”
In re Trust of Uhl (Iowa Ct. App. 2024). · cites it 9× “Iowa Code section 633A.4202(1) requires a trustee to “administer the trust solely in the interest of the beneficiaries” and to “act with due regard to their respective interests.”
In the Matter of the Trust of Duane M. Pagel (Iowa Ct. App. 2024). · cites it 9× “5 As for the sale of farm stock, the court determined the section 633A.4202 claim must fail because Richard was not a trustee at the time of that transaction.”
In re Meyer Fam. Revocable Trust (Iowa Ct. App. 2025). · cites it 4× “§ 633A.4202(1). Trustees are also prohibited from engaging in self-dealing and from obtaining personal advantage from trust property.”
Maxwell R. Alberhasky v. George Rodney Alberhasky & Grayson H. Alberhasky (Iowa Ct. App. 2019). · cites it 2× “And if Rod, acting as trustee, depleted those funds out of animus toward Max, that action could constitute a breach of fiduciary duty under section 633A.4202, entitling Max to relief.”
In the Matter of the Joan T. Goetzinger Living Trust Dated May 30, 2014 (Iowa Ct. App. 2020). · cites it 2× “2d at 490 (quoting Iowa Code section 633A.4202(1)). In this case, that beneficiary was Gladys.”
Kathleen Brownell v. Scott M. Johnson (Iowa Ct. App. 2020). · cites it 2× “See Iowa Code §633A.4202(1) (“A trustee shall administer the trust solely in the interests of the beneficiaries, and shall act with due regard to their respective interests.”
In the Matter of the Meyers Fam. Revocable Trust (Iowa Ct. App. 2023). · cites it 2× “Lora cited Iowa Code section 633A.4202(1) (2021) and case law stating trustees have a duty of loyalty to the trust and its beneficiaries and are prohibited from self-dealing.”
Locher & Davis, PLC v. Ruth F. Woller Revocable Trust (Iowa Ct. App. 2024). · cites it 2× “See generally Iowa Code §§ 633A.4202, 633A.4401, 663A.4402.”
In the Matter of the Trust of Bobby Dean Churchill (Iowa Ct. App. 2024). “§ 633A.4202(1). And she must exercise her “discretionary power[s] within the bounds of reasonable judgment and in accordance with applicable fiduciary principles and the terms of the trust.”
Kenneth W. Turner Vs. Iowa State Bank & Trust Co. Of Fairfield, Iowa, & Earl Wallace Dick (Iowa 2007). “§ 633A.4202; the duty to inform and account, id.”
— Iowa Code § 633A.4202(1) — 8 cases
In the Matter of Trust T-1 of Mary Faye Trimble, Judith R. Cunningham, Tr., 826 N.W.2d 474 (Iowa 2013). “§ 633A.4202(1). The difficulty here is that for the predeath period at issue, Cunningham owed her duties to the settlor, Trim-ble, not the beneficiaries.”
In the Matter of the Joan T. Goetzinger Living Trust Dated May 30, 2014 (Iowa Ct. App. 2020). “2d at 490 (quoting Iowa Code section 633A.4202(1)). In this case, that beneficiary was Gladys.”
Kathleen Brownell v. Scott M. Johnson (Iowa Ct. App. 2020). “See Iowa Code §633A.4202(1) (“A trustee shall administer the trust solely in the interests of the beneficiaries, and shall act with due regard to their respective interests.”
In the Matter of the Meyers Fam. Revocable Trust (Iowa Ct. App. 2023). “Lora cited Iowa Code section 633A.4202(1) (2021) and case law stating trustees have a duty of loyalty to the trust and its beneficiaries and are prohibited from self-dealing.”
In re Trust of Uhl (Iowa Ct. App. 2024). “Iowa Code section 633A.4202(1) requires a trustee to “administer the trust solely in the interest of the beneficiaries” and to “act with due regard to their respective interests.”
— Iowa Code § 633A.4202(2) — 3 cases
In the Matter of the Trust of Duane M. Pagel (Iowa Ct. App. 2024). “5 As for the sale of farm stock, the court determined the section 633A.4202 claim must fail because Richard was not a trustee at the time of that transaction.”
In re Trust of Uhl (Iowa Ct. App. 2024). “Iowa Code section 633A.4202(1) requires a trustee to “administer the trust solely in the interest of the beneficiaries” and to “act with due regard to their respective interests.”
In re Meyer Fam. Revocable Trust (Iowa Ct. App. 2025). “§ 633A.4202(1). Trustees are also prohibited from engaging in self-dealing and from obtaining personal advantage from trust property.”
— Iowa Code § 633A.4202(2)(a) — 1 case
In re Trust of Uhl (Iowa Ct. App. 2024). “Iowa Code section 633A.4202(1) requires a trustee to “administer the trust solely in the interest of the beneficiaries” and to “act with due regard to their respective interests.”
— Iowa Code § 633A.4202(2)(c) — 2 cases
In re Trust of Uhl (Iowa Ct. App. 2024). “Iowa Code section 633A.4202(1) requires a trustee to “administer the trust solely in the interest of the beneficiaries” and to “act with due regard to their respective interests.”
In re Meyer Fam. Revocable Trust (Iowa Ct. App. 2025). “§ 633A.4202(1). Trustees are also prohibited from engaging in self-dealing and from obtaining personal advantage from trust property.”
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