Detailed Answer
Short answer: Ask the executor for the estate accounting and the closing statement for the house sale, confirm which sale costs and debts were deducted, compute the net distributable proceeds, and then verify the beneficiary percentage using the terms of the will (or Iowa intestacy rules if there is no will). If the executor will not provide clear records, you can ask the probate court to compel an accounting or seek an attorney. This article explains the steps in plain language and shows a simple numeric example.
1. Who controls the proceeds and which rules apply?
In Iowa, an executor (often called a personal representative) manages estate assets, pays valid debts and administration costs, and distributes what remains according to the decedent’s will or, if there is no will, according to Iowa’s intestacy rules. Probate administration and duties of the personal representative are governed by Iowa probate law; see the Iowa Code on probate and administration for the controlling statutory framework: Iowa Code Chapter 633 (probate and administration). The Iowa Judicial Branch also provides public-facing information about probate steps and required filings: Iowa Courts — Probate information for the public.
2. Documents you have a right to review
Ask the executor for these documents so you can verify the math:
- Copy of the decedent’s will (if any).
- Probate court filings showing appointment of the executor (letters testamentary or letters of appointment).
- Inventory and appraisement of estate assets filed with the court.
- Real-estate closing statement for the house sale (HUD-1 or Closing Disclosure) showing sale price, commissions, payoffs, and closing costs.
- Receipts and invoices for repairs, improvements, or estate expenses the executor deducted.
- Mortgage payoff statement(s) or lien releases for any encumbrances paid from sale proceeds.
- Accounting or final settlement the executor filed with the probate court showing how receipts were used and how distributions were calculated.
3. Basic calculation steps (plain formula)
The basic math the executor should have used is:
- Gross sale price of the house
- Minus seller costs tied to the sale (realtor commission, closing costs, agreed repairs)
- Minus mortgage payoff and any liens paid out of sale proceeds
- = Net sale proceeds that go into the estate
- From the estate’s total assets, the executor pays estate debts, taxes, and administration costs
- = Net distributable estate
- Each beneficiary’s share (per will or intestacy) is then calculated from that net distributable estate
To get a beneficiary percentage: (amount paid to beneficiary ÷ net distributable estate) × 100 = beneficiary percentage.
4. Numeric hypothetical example
Use this example to follow the executor’s math step-by-step:
- Sale price: $300,000
- Realtor commission (6%): $18,000
- Repairs and closing costs paid by seller: $4,500
- Mortgage payoff: $150,000
- Net sale proceeds into estate = 300,000 − (18,000 + 4,500 + 150,000) = $127,500
- Other estate debts/expenses (funeral, taxes, administration): $16,500
- Total net distributable estate (including other assets) = suppose $200,000
- If the will divides the estate equally between two siblings, your share = 50% of $200,000 = $100,000. Your percentage = (100,000 ÷ 200,000) × 100 = 50%.
If instead the estate split was based only on the house proceeds (rare), you would compute your percentage against the net sale proceeds ($127,500) rather than the entire distributable estate; confirm how the will allocates specific assets versus the residuary estate.
5. Common items that change the math
- Specific bequests: If the will gives fixed dollar amounts or specific property to other beneficiaries, those amounts must be satisfied before dividing the residue.
- Administrator fees and attorney fees: Reasonable compensation and court-approved attorney fees reduce the distributable amount.
- Creditor claims: Valid creditor claims reduce the estate before distribution.
- Taxes: Estate or final income taxes paid from the estate affect the net distributable amount.
- Settlement of disputes: If contested claims or expenses are paid, those numbers should appear in the accounting.
6. What to do if the executor won’t cooperate or the accounting looks wrong
- Request a written accounting and copies of the documents listed above in writing (email or letter). Keep copies.
- Review the probate file at the county courthouse or online. Court filings (inventory, accountings, petitions) are public and can show what the executor filed.
- If you see clear errors or unexplained deductions, ask the executor in writing for an explanation and supporting receipts.
- If the executor refuses or the explanation is incomplete, you can file an objection with the probate court asking the judge to require a formal accounting. The court can compel records, require repayment, or remove a personal representative in serious cases.
- Consider consulting a probate attorney for help reviewing the accounting or filing objections. An attorney can advise if the accounting looks improper and can represent you in court.
7. Where to find Iowa statutory and court resources
Key starting points:
- Iowa Code — Probate and administration (general statutory rules about executors/personal representatives): https://www.legis.iowa.gov/docs/code/633.pdf.
- Iowa Judicial Branch — Public information on probate processes and forms: https://www.iowacourts.gov/for-the-public/representing-yourself/probate/.
Helpful Hints
- Request documents in writing and keep a dated paper or email trail. Written requests help if you need the court later.
- Compare the closing statement line-by-line against what the executor deducted. Commissions, payoffs, and prorated taxes should appear on the closing statement.
- Check whether the will gives the house to a specific person or gives a percentage of the estate; that difference changes whether you look at the house proceeds alone or the whole estate for your share.
- Ask for a ledger or transaction list that shows each deposit and expense tied to the sale. A clear ledger makes verification simple.
- Remember that the estate’s net distributable amount can include other assets and liabilities, so residence sale proceeds may only be one component of your final share.
- If you receive conflicting explanations, request that the executor produce the accounting under oath or file a formal petition with the court to compel an accounting.
- If the probate court has already approved an accounting, see the probate file at the clerk’s office to review the approved numbers and any objections that were heard.
Disclaimer: This article explains general information about Iowa probate practice and is not legal advice. It does not create an attorney-client relationship. If you need specific advice about an estate or believe an executor acted improperly, consult a licensed Iowa probate attorney or contact the probate clerk in the county where the estate case is filed.