When it comes to estate planning in Iowa, it’s crucial to understand which assets may not pass under a will. Certain types of property are exempt from probate and will be distributed according to specific rules, regardless of what is stated in a will. In this article, we will delve into the various forms of property that do not pass under a will in Iowa, including joint property, life insurance policies, and trusts.
Joint Property
One type of property that does not pass under a will in Iowa is joint property. When property is held jointly with rights of survivorship, it means that when one owner passes away, the surviving owner automatically inherits the deceased owner’s share of the property. This transfer of ownership occurs outside of the probate process and is not governed by the terms of the deceased owner’s will.
Life Insurance Policies
Life insurance policies are another example of assets that bypass a will in Iowa. The proceeds from a life insurance policy are paid directly to the named beneficiaries upon the policyholder’s death. These funds are not considered part of the deceased individual’s estate and are not subject to probate. It’s essential to keep beneficiary designations up to date to ensure that the policy proceeds are distributed according to your wishes.
Trusts
Assets held in a trust are also exempt from probate and do not pass under a will in Iowa. A trust is a legal arrangement where a trustee holds and manages assets on behalf of the beneficiaries. When assets are placed in a trust, they are no longer considered part of the individual’s probate estate. Trusts offer privacy, flexibility, and control over how assets are distributed, making them a popular estate planning tool.
Legal Code Reference
For more detailed information on the laws governing property that does not pass under a will in Iowa, refer to the Iowa Code, specifically Chapter 633 – Probate Code. This legal framework outlines the rules and procedures for probate administration, including the treatment of various types of assets and property transfers.
Ensuring Proper Estate Planning
Understanding which assets do not pass under a will in Iowa is essential for effective estate planning. By being aware of how joint property, life insurance policies, and trusts operate outside of the probate process, individuals can make informed decisions to protect their assets and ensure their wishes are carried out efficiently.
Buried in Work’s Additional Resources
Buried in Work provides Iowa state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
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