What to Do When Someone Dies in Iowa
Besides taxes, the other sure thing in life is that it comes to an end eventually. A common question becomes "what's next?" (I'll skip the whole afterlife heaven and hell discourse and stick to the worldly issues.) And of course you have the whole "what to do with the body issue".
Depending on the planning that was done beforehand will dictate a lot that will be done afterwards. For example, if the decedent properly used a revocable trust, it may not be necessary to go through the probate process. Good planning and organization prior to our "time" is important in helping to alleviate the work that our family and friends are forced to go through.
Transfer of Assets
If all of the assets were held jointly, it may not be necessary to go through the probate process, although there may be some other advantages with going through probate. Also, if the asset has a named beneficiary (e.g. life insurance, IRA, etc.), that asset will pass automatically and not subject to any will, trust or other dispositive document. Otherwise, other than joint assets or named beneficiaries, the estate plan of a will, trust, or the state's plan will determine where those assets go. (And it might not matter that you're the child from the first marriage or dad liked you the best.)
Payment of Bills/Claims
Depending on financial situation of the decedent, there may be certain bills and expenses that need to be paid. Through certain publication processes in the probate process, all potential claims can be "pulled out of the woodwork" in order to determine how much should be paid and whether it is a valid debt or not. Also, if the decedent was receiving certain public assistance benefits (e.g. Medicaid) during life, of if the decedent's predeceased spouse received such benefits, there may be a lien against any remaining assets that follows those assets.
Taxes
In Iowa, if the only beneficiaries are a surviving spouse, children, grandchildren, parents or other lineal descendant or ascendant, there is no Iowa Inheritance tax and no need to file an Iowa inheritance tax return. There are some issues if there have been certain gifts within the past three years which should also be examined.
Federal estate taxes are normally not applicable for estates less than $2,000,000 (for 2008). If the estate is below that figure, typically it is not necessary to file a federal estate tax return. Again, gifts during life of the decedent are important to review also.
Summary
This list is not meant to be exhaustive, but mainly as a guide of some items to consider when it becomes necessary, and hopefully help you choose to do some proper planning ahead of time. You should consult with an experienced attorney when it becomes necessary to sort through all of these items.
Depending on the planning that was done beforehand will dictate a lot that will be done afterwards. For example, if the decedent properly used a revocable trust, it may not be necessary to go through the probate process. Good planning and organization prior to our "time" is important in helping to alleviate the work that our family and friends are forced to go through.
Transfer of Assets
If all of the assets were held jointly, it may not be necessary to go through the probate process, although there may be some other advantages with going through probate. Also, if the asset has a named beneficiary (e.g. life insurance, IRA, etc.), that asset will pass automatically and not subject to any will, trust or other dispositive document. Otherwise, other than joint assets or named beneficiaries, the estate plan of a will, trust, or the state's plan will determine where those assets go. (And it might not matter that you're the child from the first marriage or dad liked you the best.)
Payment of Bills/Claims
Depending on financial situation of the decedent, there may be certain bills and expenses that need to be paid. Through certain publication processes in the probate process, all potential claims can be "pulled out of the woodwork" in order to determine how much should be paid and whether it is a valid debt or not. Also, if the decedent was receiving certain public assistance benefits (e.g. Medicaid) during life, of if the decedent's predeceased spouse received such benefits, there may be a lien against any remaining assets that follows those assets.
Taxes
In Iowa, if the only beneficiaries are a surviving spouse, children, grandchildren, parents or other lineal descendant or ascendant, there is no Iowa Inheritance tax and no need to file an Iowa inheritance tax return. There are some issues if there have been certain gifts within the past three years which should also be examined.
Federal estate taxes are normally not applicable for estates less than $2,000,000 (for 2008). If the estate is below that figure, typically it is not necessary to file a federal estate tax return. Again, gifts during life of the decedent are important to review also.
Summary
This list is not meant to be exhaustive, but mainly as a guide of some items to consider when it becomes necessary, and hopefully help you choose to do some proper planning ahead of time. You should consult with an experienced attorney when it becomes necessary to sort through all of these items.
Comments
Also can the estate be held liable for child support until the children reach the age of 18?
When there is no will, there is a heirarchy process on who can be appointed administrator: (1) surviving spouse, if any; (2) heirs; (3) creditors; or (4) other persons showing good grounds.
The surviving spouse has 20 days to petition, and each successive category has 10 days. After those periods have run, #4 applies. This is only as to appointment and has nothing to do with inheriting. That is a separate matter and procedure.
Let me know if I can be of further assistance.
Both of my parents are now deceased. I am an only child and have been left everything.
In 1996 my parents had my name put on everything. I was joint owner of vehicles and bank accounts.
They had life estate to the house, but it was in my name. Now the lawyer wants me to probate because he says the State of Iowa wants to "see" the transfer. I'm not nderstanding it. My parents did this way back then so I wouldn't have to worry about anything.
Do you have any advice?
I'm not sure why you would need to probate anything either, unless you want to pay probate attorney fees. I'd recommend a second opinion, but I don't see a reason for probate as there are no assets that are directed by the probate process. If there were some creditors you were concerned about, maybe.
Thank you!
It isn't clear if you need to go through probate or not. You may not if the house was owned jointly. If she can't afford the house/car and she doesn't want to get any other financing, the bank will eventually take the items. Let them go through the work/effort to recover the assets. No reason for probate if they are going to eventually get the assets.
My dad recently passed away. His second wife has been looking for new houses during his death process. They still have their current house. It turns out my dad is the only signature on the note, but him and her are both on the mortgage, deed, etc.
My question is who is responsible for paying the mortgage. The estate or her since she is basically a joint-owner and the mortgage even states her as a borrower, which would make her a co-owner/signer?
Thanks for the insight!
A common question involves having a name on a mortgage. A mortgage document itself does not obligate someone to pay the mortgage, but merely consents to placement of a lien on property. The party that signed the promissory note is responsible for payment of the debt. However, the mortgage filed against the house gives the bank the ability to foreclose on the lien if the promissory note is not paid. Your situation creates a sticky scenario where she may not be obligated to pay the mortgage, but the equity in the house could be lost if someone doesn't pay it.
As you may expect, my first advice is to get copies of the key documents (current abstract) and contact an attorney ASAP.
It depends. If your father had a will and left everything to his wife (your stepmother) then no, you don't have a right to anything. If he didn't have a will, then under Iowa law you may potentially have some rights under the intestacy laws. However, there may be some struggles on agreements for division of assets.
Regardless of your husband's relationship with his son, without a will your stepson has a claim to the estate. However, with jointly owned assets and named beneficiaries on those accounts, there may not be anything available for him to assert his claim. Those assets are not subject to division. However, he and his attorney may not know how the property was titled/owned and until they are enlightened, they may pursue the possible "intestate share" of the stepson.
Not a stupid question at all. In order for the Will to have the ability to transfer ownership of the house to you, the Will would need to be admitted to court in the probate proceedings. The court has to make sure it is a valid will, nobody contests it, that all bills & taxes are paid, etc. That probate process is how all of these issues get resolved so that you as an owner to the house can sell it, keep it or do whatever you want with it.
As usual, it is difficult to give an easy answer. For example, assuming that there was no will for your husband, you get 1/2 of his estate and his 6 children split 1/2. However, the surviving spouse is guaranteed to get at least $50,000.00 in value (from an intestate estate - "no will"). So, possibly you get the house, possibly split, possibly reimbursed for your expenses, etc. In other words, probably best to get legal advice.