Detailed Answer

When a decedent dies without a will in Iowa, their property passes by intestate succession under Iowa Code Chapter 633. If a minor stands to inherit, Iowa law provides mechanisms to protect that inheritance until the child reaches the age of majority.

1. Petition for Appointment of a Guardian of the Estate

Any interested party (often a surviving parent or relative) may file a petition in the county probate court to appoint a guardian of the estate for the minor under Iowa Code §633.556. The court will:

Review the child’s assets.
Appoint a guardian—often a trusted adult—to manage the inheritance.
Require the guardian to post a bond unless waived (Iowa Code §633.639).

The guardian must file annual accountings and obtain court approval for major expenditures, ensuring the minor’s assets remain secure.

2. Establish a UTMA Custodial Account

Iowa’s Uniform Transfers to Minors Act (UTMA), Iowa Code Chapter 547, allows an adult to hold property for a minor’s benefit. Steps include:

Choose a custodian (often the appointed guardian or another responsible adult).
Transfer inheritance proceeds into a UTMA account at a bank or brokerage.
Avoid guardianship bond requirements, since UTMA custodians are not required to post bond.
Hold assets until the minor reaches the withdrawal age (default age 21, or up to 25 if specified in the transfer under Iowa Code Chapter 547).

3. Court Supervision and Approval of Distributions

Whether under guardianship or UTMA, the court retains oversight. Guardians must petition for authority to make distributions for education, health, maintenance, or support. UTMA custodians must use funds only for the minor’s benefit and keep records to show appropriate use.

4. Annual Accounting and Bond Review

Guardians file annual reports detailing receipts, investments, and disbursements. The court may adjust bond requirements or remove a guardian for misconduct. UTMA custodians should also keep detailed records in case court review becomes necessary.

Disclaimer

This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation in Iowa.

Helpful Hints

Act promptly. File for guardianship before funds disperse.
Gather financial records: bank statements, asset valuations, and death certificate.
Consider a UTMA account for lower administrative burden.
Keep detailed records of all transactions and retain receipts.
Attend scheduled court hearings and submit accountings on time.
Review bond amounts periodically; request reduction if appropriate.
Consult a probate attorney for court filings and guardianship rules.