How to Freeze or Secure a Decedent’s Bank Accounts in Iowa
Detailed Answer
When a loved one dies, their bank accounts become part of their estate. If co-heirs decline to help secure those assets, you need court authorization to freeze or control the funds. In Iowa, that process typically involves one of two paths:
1. Formal Probate and Letters of Administration
- File a petition with the Iowa District Court in the county where the decedent lived to appoint a personal representative (administrator). See Iowa Code §633.40 for issuance of letters of appointment: Iowa Code §633.40.
- Once appointed, the court issues Letters of Administration. Present these letters to the bank to assert control over accounts and direct the bank to freeze or transfer funds into the estate account.
- If immediate protection is needed, request a temporary order or bond requirement under Iowa Code §633.42 to secure estate assets before full administration: Iowa Code §633.42.
2. Small Estate Affidavit
If the decedent’s personal property (excluding real estate) is valued at $50,000 or less, Iowa allows heirs to use an Affidavit for Collection of Personal Property instead of formal probate:
- Prepare the affidavit per Iowa Code §633.225: Iowa Code §633.225.
- All co-heirs must either sign the affidavit or you must demonstrate notice and opportunity to sign. If any heir refuses, you cannot use this affidavit; you must proceed with formal probate.
- Present the signed affidavit to the bank. The institution then releases or secures the funds for distribution.
In both scenarios, the court record and Letters of Administration (or valid small estate affidavit) serve as the official documentation banks require to freeze, secure, or transfer the decedent’s accounts. Without cooperation from co-heirs, formal probate is often the only way to obtain enforceable authority.
Helpful Hints
- Gather death certificate copies before filing—banks require certified copies.
- Check the total value of personal property to see if you qualify for the small estate affidavit.
- File in the district court where the decedent lived at the time of death.
- Request a bond waiver if you’re the surviving spouse or sole heir to reduce costs.
- Keep detailed records of all filings and bank communications.
- Consider hiring a probate attorney if assets exceed the small estate limit.
Disclaimer: This information is for educational purposes and does not constitute legal advice. Always consult a qualified attorney before taking legal action.