Using a Small Estate Affidavit to Distribute Assets in Iowa

Detailed Answer

When someone dies leaving personal property valued at $100,000 or less, Iowa law allows heirs or beneficiaries to use a small estate affidavit instead of full probate. This process speeds up asset collection and distribution for estates with minimal assets.

What Is a Small Estate Affidavit?

A small estate affidavit is a sworn statement that lists the decedent’s personal assets, their value, and how you plan to distribute them. You present it to banks, investment firms, and other holders of personal property to collect assets.

Eligibility Criteria Under Iowa Law

You must wait at least 28 days after the decedent’s date of death.
The total value of the decedent’s personal property in Iowa cannot exceed $100,000. Real estate and debts do not count toward this limit.
No personal representative may have been appointed, and no probate administration can be pending in Iowa.

Step-by-Step Process

Gather Required Documents: Obtain the death certificate, an inventory of personal property and estimated values, and contact information for beneficiaries or heirs.
Verify Estate Value: Confirm that the total personal property value does not exceed $100,000.
Prepare the Affidavit: Draft the affidavit using statutory language from Iowa Code §633.207. Include your statement of eligibility, asset list, heir names, and distribution plan.
Sign and Notarize: Have the affidavit signed by an eligible heir or beneficiary and notarized.
Present the Affidavit: Submit the original affidavit, a certified copy of the death certificate, and any supporting documents to the institution holding each asset.
Collect and Distribute Assets: Once the institution approves the affidavit, collect the personal property. Then distribute assets per the decedent’s valid will or Iowa’s intestate succession rules under Iowa Code §633.330.

Distributing Assets to Heirs

If the decedent left a valid will, distribute according to its terms. Without a will, Iowa’s intestate succession statutes determine distribution shares based on surviving spouses, children, parents, and other relatives.

Limitations and Exceptions

This process applies only to personal property. You cannot transfer real estate through a small estate affidavit. Creditors may file claims against the estate before heirs receive assets. If any party contests the affidavit or if assets exceed the $100,000 limit, you must open a formal probate proceeding.

Iowa Statute References

Iowa Code §633.207 – Affidavit of Succession to Personal Property
Iowa Code §633.330 – Intestate Succession

Disclaimer: This article does not constitute legal advice. Consult a licensed Iowa attorney for guidance specific to your situation.

Helpful Hints

Keep a detailed, dated inventory of all personal assets and their values.
Confirm the $100,000 limit before using the affidavit.
Notify known creditors and allow time for claims before distribution.
Use plain language but include required statutory phrases in your affidavit.
Check each financial institution’s affidavit acceptance requirements.
Seek legal counsel if the estate includes real property, contested beneficiaries, or potential creditor disputes.