Detailed answer — How to document and file receipts for estate payments under Iowa law

When you administer an estate in Iowa you act as a fiduciary. That duty requires transparent, accurate record-keeping that shows how estate money moved and why each payment was made. Iowa’s probate laws governing decedents’ estates are found in Iowa Code chapter 633 (Decedents’ Estates). See the Iowa Code for the governing framework: Iowa Code, ch. 633 (Decedents’ Estates).

Below are the core recordkeeping and filing practices a personal representative (executor or administrator) should follow to document payments to heirs, service providers, or other payees.

1. Use a separate estate bank account

Deposit all estate funds into a dedicated bank account titled in the name of the estate and your fiduciary role (for example, “John Doe, Personal Representative of the Estate of Jane Doe”). Do not mix estate funds with personal funds. A separate account makes it simple to produce bank statements and cancelled checks that show receipts and disbursements.

2. Capture original receipts and invoices

• Get an itemized invoice for every service provider (funeral home, contractor, accountant, attorney, appraiser, etc.).
• For payments to heirs (for example, an heir who provided unpaid caregiving or sold personal property to the estate), obtain a written invoice or signed receipt from the heir that states the nature of the service or sale, the dates, and the amount paid.
• Keep cancelled checks, bank transfer confirmations, credit-card receipts, and merchant receipts as proof of payment.

3. Create a clear accounting ledger

Maintain a ledger or accounting spreadsheet that records each transaction with these fields: date, payee, amount, payment method, purpose (e.g., funeral costs, appraisal, distribution), and cross-reference to the invoice or receipt file (scan/file number). Contemporaneous entries (recorded at the time of the transaction) are strongest if you later need to justify decisions to beneficiaries or the court.

4. Document authority for the payment

Every payment should be traceable to legal authority:

• Payments for ordinary estate administration (funeral, utilities, mortgage/insurance, taxes) are generally allowable as estate expenses.
• Payments to heirs as distributions should follow the will’s terms or Iowa intestacy rules if there is no will.
• If you pay an heir for services performed for the estate, document whether that payment was authorized by the will, approved by the court, or agreed to in writing by the beneficiaries. If a payment is large or unusual, obtain court approval in advance whenever possible.

5. File required inventories and accounts with the probate court

Iowa requires that personal representatives provide inventories and accountings in certain proceedings. Keep your receipts and a supporting set of documents ready to attach to the court accounting or to provide to beneficiaries on request. Forms and local court rules vary. Check the Iowa Judicial Branch forms site for probate forms and local requirements: Iowa Courts — Forms.

6. Seek court approval for contested or extraordinary payments

If beneficiaries disagree with a payment (for example, paying an heir for services, large repairs before sale, or unusual attorney fees), file a petition asking the probate court to approve the payment or allowance. Court orders remove uncertainty and protect the personal representative from later claims.

7. Retain records for an appropriate period

Keep estate records, ledgers, bank statements, receipts, canceled checks, and tax returns until the estate is closed and for several years thereafter. Many fiduciaries keep records for at least seven years to cover tax audits or later creditor/beneficiary claims.

Common types of estate payments and how to document each

• Service providers (funeral homes, contractors): Itemized invoice + proof of payment (cancelled check or bank transfer), and file in provider subfolder.
• Professional fees (attorney, accountant): Engagement letter + itemized bills + court approval for large fees when required.
• Payments to heirs for services: Written agreement or signed receipt from heir describing services and dates; include rationale for payment and beneficiary consent or court approval if material.
• Distributions to heirs: Record copy of will or intestacy calculation, ledger entry showing distribution, and receipt signed by beneficiary acknowledging payment.

Hypothetical example (illustrative)

Suppose a personal representative sells a piece of estate furniture and pays an heir $1,200 for services the heir provided in clearing an elderly decedent’s home. Best practice: (1) obtain an invoice from the heir describing the services and hours, (2) document the appraisal or sale evidence that supports the price, (3) record the payment from the estate account with a memo linking to the invoice, and (4) keep the cancelled check and signed receipt. If beneficiaries later question the payment, the invoice, ledger entry, and cancelled check support the personal representative’s decision.

What to file with the probate court in Iowa

Filing requirements vary with the type of administration and local court rules. Typical filings that use receipts and accounting records include:

• Inventory of estate assets (when required).
• Interim accountings if the estate administration is lengthy.
• Final accounting and petition for discharge that summarizes all receipts and disbursements and requests court approval of the administrator’s actions before final distribution.

Attach supporting receipts, invoices, bank statements, and cancelled checks to the accounting or have them ready to present at a hearing. Consult local probate court rules and available forms at the Iowa Courts website: Iowa Courts — Forms.

When to notify beneficiaries and get consent

You should notify beneficiaries of major proposed actions and distributions. If beneficiaries consent in writing to payments (for example, to pay an heir for services), keep those written consents in the file. Consent reduces the chance of later objections, but does not always eliminate the need for court approval when statutes or the will require it.

When to seek professional help

If you face any of these situations, consider consulting a probate attorney or accountant:

• Large or unusual payments (significant repairs, disputed payments to heirs).
• Disagreements among beneficiaries about distributions or payments.
• Complex tax issues or potential creditor claims.
• Uncertainty whether a particular expense is an allowable estate expense under Iowa law.

Helpful Hints

• Open and use one estate-only bank account for all estate transactions.
• Scan receipts and invoices daily and keep organized electronic folders with backup.
• Number or label each receipt and cross-reference it in your ledger or accounting software.
• Keep engagement letters and any beneficiary consents with the payment file.
• For payments to heirs, prefer a signed written agreement or receipt describing services and amounts.
• Get prior court approval for large or unusual expenses when possible.
• Provide interim statements to beneficiaries in long administrations to reduce surprises.
• Keep records for at least several years after closing the estate, and longer if taxes may be audited.