What is a small estate in Iowa?
When a loved one passes, navigating the many obstacles and tasks in your path can feel like scrambling through a maze — leaving you with little time or space to grieve.
If your loved one wasn’t particularly wealthy, you might think you can handle the process easily on your own. But dealing with small estates can still eat through a lot of time and money.
As an Iowa attorney with a speciality in estate planning, I’m here to be your guide through this legal maze. To get started right away, submit a 2-minute intake form to learn whether your loved ones’s assets qualify for a small estate affidavit or small estate administration. Otherwise, read on for some useful advice.
Small Estates and Probate
In Iowa, a small estate is categorized based on the assets owned by the deceased at the time of death. To be considered a small estate, the sum of the assets must equal $200,000 or less.
Whether the estate will require a court-supervised probate process to transfer its assets depends on the ownership of the assets and whether there is a beneficiary designation.
Small Estate Affidavit in Iowa
If there is no real estate to transfer and the sum of the deceased assets is $50,000 or less, an eligible person can use a small estate affidavit, rather than going through probate.
Iowa Code 633.356 establishes the requirements for a small estate affidavit. Complying with these requirements can be quite overwhelming — and often involve communication with a bank or financial company.
If you don’t want to wade through the mess, I can help you prepare an Iowa small estate affidavit for a flat fee. Please take a moment to review my fees and/or request legal services for a small estate affidavit.
Small Estate Administration in Iowa
If probate is required for your loved ones’ small estate, there is no need to despair. The court-supervised probate process for small estates involves lower court costs and relaxed requirements for closing. You can learn more about the probate process for small estates in Chapter 635 of the Iowa Code.
If you’re not an expert, the legalese in Chapter 635 can be disorienting at best. To make things easier, I’ve included two lists below to help you determine whether probate is needed for your loved one’s estate.
Small estate assets that require probate:
Real estate titled in only one person's name (refer to the deed)
Real estate ownership as a tenant in common
Single-owned bank accounts with less than $50,000 and no payable-on-death certificate
Savings bonds totaling less than $50,000, with no payable-on-death certificate
Individual stocks totaling less than $50,000, with no transfer-on-death certificate
Retirement accounts without a surviving beneficiary named
Life insurance with the estate named as the beneficiary or without a surviving beneficiary
Investment accounts (e.g. IRAs) without a surviving beneficiary
Small estate assets that can transfer outside of probate:
Real estate with a surviving joint tenant
Bank accounts with a surviving joint owner or a surviving payable-on-death designee
Savings bonds with a surviving payable-on-death designee
Individual stocks with a surviving transfer-on-death designee
Retirement accounts with a surviving beneficiary
Life insurance with a surviving beneficiary
Investment accounts with a surviving beneficiary
Keep in mind that, if probate is required, the value of the relevant asset(s) is counted toward the $200,000 limit for small estates. If the value of the deceased’s assets that require probate exceeds this amount, it will be classified as a regular estate, which involves additional procedural requirements, higher attorney fees, and higher court costs. The court costs for a small estate average about $45, whereas the court costs for a regular estate are usually several hundred dollars. Take a moment to review my fees and/or request legal services for a small estate affidavit.
If you need assistance transferring the assets of a deceased love one, let me be your legal guide. Complete a brief digital intake form by clicking the button below. You can also send me a secure communication about your situation.
