Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
Detailed Answer
When a decedent owned real property in Iowa and the estate needs to use that property’s value to pay valid claims, the personal representative must bring the real estate into the probate estate. Below are the key steps under Iowa law:
- Open Probate and Appoint a Personal Representative
File a petition in the district court of the county where the decedent lived. The court will appoint a personal representative (sometimes called an executor). See Iowa Code § 633.200 for appointment procedures. - Inventory and Appraisement
Within 90 days of appointment, the personal representative must file an inventory listing all estate assets, including real property, and their appraised values. See Iowa Code § 633.28. - Notice to Creditors and Claims Period
Publish notice once in a newspaper of general circulation and mail notice to known creditors. Creditors then have four months to file claims. See Iowa Code § 633.33 (notice) and § 633.41 (claim period). - Assess Asset Sufficiency
The representative reviews filed claims against available personal property. If personal assets do not cover allowed claims, the representative may petition the court to authorize a sale of real estate. - Seek Court Order to Sell Real Property
File a petition asking the court to order the sale of real property to pay claims. The petition must show that personal property is insufficient. See Iowa Code § 633.179 (authority to sell) and § 633.180 (procedure). - Conduct the Sale
The court typically directs a public auction, but may approve a private sale if in the estate’s best interest. Proceeds go into the estate bank account pending distribution. - Pay Claims and Distribute Proceeds
Apply sale proceeds to pay valid claims in the order of priority set by Iowa law. See Iowa Code § 633.304 for payment order (administration expenses first, then secured claims, then unsecured claims). - Close the Estate
After paying claims and distributing any remainder to beneficiaries, file a final report and petition for discharge. See Iowa Code § 633.307.
Helpful Hints
- Start probate promptly—delays can affect creditor timelines.
- Keep detailed records of notices, appraisals, and sale bids.
- Confirm the property’s market value with a licensed Iowa appraiser.
- Notify all known creditors to minimize unknown claim risks.
- Work with an attorney if title issues or disputes arise.
- Plan for homestead allowances or spousal allowances before selling.
- Maintain transparent communication with beneficiaries throughout the process.