Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer: Accessing and Withdrawing Funds in a Deceased Person’s Bank Account in Iowa Probate
When a person dies, their bank accounts become part of the probate estate. Iowa law provides two main pathways to access those funds: the small-estate affidavit process and formal probate administration.
- Determine if the small-estate affidavit applies.
If the total value of all personal property (excluding real estate) does not exceed $100,000 at the date of death, a beneficiary or heir can use a small-estate affidavit. Under Iowa Code §633.271 (link), you can collect personal property, including bank account balances, without formal probate.
- Prepare and serve the small-estate affidavit.
Obtain a certified death certificate. Complete the Iowa small-estate affidavit form, listing account details and heirs. Sign the affidavit before a notary. Provide the affidavit and death certificate to the bank. The bank must release funds up to its limits.
- File for formal probate if the estate exceeds $100,000.
When the estate’s personal property exceeds $100,000 or the decedent had real estate, file a petition in the Iowa District Court of the county where the decedent lived. See Iowa Code §633.30 (link).
- Obtain letters testamentary or of administration.
After the court approves the petition, it issues letters testamentary (if there’s a will) or letters of administration (if there’s no will). These official documents identify you as the personal representative.
Cite Iowa Code §633.308 (link).
- Present documentation to the bank.
Provide the bank with certified copies of the death certificate and your letters. The bank will grant you access to the funds. Always ask the bank in advance which documents they require.
- Follow fiduciary duties.
As personal representative, you must collect and safeguard assets, pay valid debts and taxes, and distribute remaining funds to heirs per the will or Iowa’s intestacy statutes. File an inventory and account with the court as required.
Helpful Hints
- Obtain at least five certified copies of the death certificate—banks often require originals.
- Ask the bank for its probate department’s checklist before filing paperwork.
- Keep detailed records of all withdrawals and disbursements.
- Communicate early with potential heirs to minimize disputes.
- Consult an estate-planning attorney if the estate has complex assets or disputes.