Probate Alternatives

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In Iowa, if an estate has less than $50,000.00 in total value at any point and no real estate, the heirs or beneficiaries can provide an Affidavit for Distribution to anyone in possession of the estate assets, such as a bank, and they are required to turn the funds over the heirs or beneficiaries.

When two people own property jointly in Iowa they are both considered the owners of the property and become the sole owner upon the death of the other owner.  This is true for personal property, such as bank accounts, and also for real property, such as a house or farmland. However, for real estate, the deed or other document transferring title to the joint owners must  state that the owners are joint owners with right of survivorship. Transfers after January 1, 2015, to married couples in Iowa are presumed to transfer the property as joint tenants with right of survivorship, unless the transfer document states otherwise. An affidavit must be filed with in the county recorder's office to change the names on the title.

Some types of property allow for a payable on death (POD) designation to state who will receive the property upon the owner's death.  These designations may also be referred to as a Transfer on Death (TOD) or beneficiary designation.  Iowa law recognizes such designations in relation to personal property, such as bank, credit union, and retirement accounts but not for real property.

An owner of real estate, whether residential, commercial, or agricultural, may transfer their property to another person but reserve the use and enjoyment of the property for the current owner's life. The life estate owner continues to pay the taxes, insurance, and for upkeep for the property, but upon their death, the real estate becomes titled in the name of the transferee, or remainderman. The transfer of the interest after the life estate  cannot be revoked.