Probate law gives legal guidance to the transference of an estate after the owner dies to his or her heirs. The statutes govern all issues concerning the estate, from inventorying all of the assets and property, to finding and contacting all creditors and beneficiaries.
After the estate is opened and proof has been provided of the decedent’s death, a personal representative is appointed. This may or may not be the individual listed in the will. Where there is no will, the court will determine who is eligible to become the personal representative of the estate.
The personal representative has the responsibility of notifying all creditors about the deceased deaths. This is done by crafting a placing a Notice of Creditors in a local and approved newspaper. This notice alerts creditors to the decedent’s passing and gives them a limited amount of time to make a claim.
The personal representative will either pay the creditors or deny their claim. They will then distribute the remaining estate to the beneficiaries and petition the court to discharge and close out the case.
Iowa Probate
Iowa probate law is designed to help individuals transfer a decedent’s assets and settle all claims against the estate. However, probate is not required. If an individual has a will, they may or may not have to go through probate. What will determine if they need to will be the type of property the decedent owned, whether or not it was joint or separate, or if any money was owed on the property or there were any claims against the decedent.
Probate can generally be avoided if the property is transferred legally in a will and all of the beneficiaries agree. A decedent's estate will qualify to skip probate if they're estate is worth less than $25,000 and they only had community property.
In Iowa, the majority of probate cases are closed out within one year. Estates have to be closed out in three years from the time of the creditor’s second notification. Extensions can be granted by the judge.
The cost of an Iowa probate attorney will vary based on the estate’s worth. For estates worth less than $5,000 the cost of the attorney will be $220. If the estate is worth $5,000 + than the average fee is $220 plus 2% of any money over $5,000. In very hard cases, attorneys can be granted more money and individuals may also negotiate fees and terms with their own attorneys. All arrangements should be made prior to the beginning of the probate and should be in writing.
Inheritance Loans
Inheritance loans are perfect for individuals that are in a hurry to receive their inheritance but are not able to because the case is stuck in probate. In as little as 3-7 days, they can receive a check, backed by their incoming inheritance. Because probate in most cases will take a few months, this could really push back the issue of the inheritance to beneficiaries. A cash advance for heirs allows them to get money fast, without the hassle and frustration of probate.
Probate Resources- Iowa
Inheritance Taxes- Iowa
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