Iowa Code Section 633.356 allowing distribution of a decedent’s property by affidavit in lieu of formal probate proceeding has recently been amended and will become effective July 1, 2018. Under the previous law, if a decedent’s gross estate value was $25,000 or less, the property could be distributed by this affidavit. The new law doubles the amount to $50,000.
Under the amended legislation, you are still required to wait until 40 days have passed from the decedent’s date of death before the affidavit may be used. Also, the new Act requires the affiant to provide on the affidavit all of the following information:
- That no debt is owed to the Iowa Department of Human Services for any benefits received, and if there is a debt, that it will be paid to the extent of the funds receive pursuant to the affidavit;
- That there are no taxes due to the Iowa Department of Revenues, and if there are taxes dues, that they will be paid to the extent of the funds receive pursuant to the affidavit; and
- If there are any creditors to the decedent, that they will be paid to the extent of the funds received pursuant to the affidavit.
It is foreseeable that this change in legislation is going to benefit many people greatly as it will make administration for estates $50,000 or less much simpler, even with all of the added provisions that need to be included on the affidavit.
Written by: William Schwickerath, Attorney at Pearson Bollman Law
If you have any questions regarding the material in this article and how it applies to you, please contact Pearson Bollman Law at 515-727-0986.