After a loved one dies, their estate could end up in Iowa probate court. As an heir, you may be waiting for your share of the assets so you can pay debts or make investments. The Iowa probate process can require several months of work to conclude, though. If the estate has significant complexities, the process could take a year or more.
If you would like to gain access to at least part of the money that you will inherit, Rockpoint Probate Funding can help. We offer cash advance services to heirs who are waiting for a loved one’s estate that is stuck in Iowa probate.
To determine whether a cash advance would benefit your inheritance situation, it’s helpful to learn more about how Iowa probate law works.
Why Does Iowa Probate Take So Long?
Although most estates in Iowa probate resolve within a year or less, some cases take longer. If creditors are making unusual claims against the estate or if the heirs are disputing the will, the process may take a few years.
Iowa Statute 633.331 gives the surviving family members up to five years after the date of the death to start the probate process. Waiting to start probate can significantly lengthen the time until you receive a resolution, too.
Iowa has some laws to speed up how probate operates. You would start the process by filing your loved one’s will in county court. If the Iowa county court decides the will is valid, it can decide to accept the will. Creditors can file in county court, too.
However, if questions exist about the will’s validity or if multiple people are disputing it, the process could go to probate and take a year or more.
In Iowa, district courts handle the final steps of the probate process rather than county courts. A district court in Iowasometimes covers several counties. The probate process could take longer if the district court is especially busy with cases from multiple counties at once.
Ways To Avoid Iowa Probate
Because of the time required to complete probate in Iowa, you might want to look for ways to avoid it. Iowa laws provide a few ways for people to keep their estates out of probate. However, using these options requires taking some estate planning steps ahead of time.
- Small estates: If your loved one has an estate with a value of less than $25,000, skipping probate is possible. A small estate like this may qualify for an expedited probate process in Iowa, similar to a small estate affidavit in other states.
- Revocable living trust: If your loved one created a living trust, this document keeps the estate out of probate. Upon your loved one’s death, all assets belong to the trust. This leaves nothing in your loved one’s name, meaning no reason exists to go to Iowa probate. The instructions in the trust determine how and when to distribute the assets to the heirs.
- Listed beneficiaries: Certain types of assets that could pass to heirs after a loved one’s death list specific beneficiaries. These assets, such as life insurance policies or retirement accounts, go directly to the listed beneficiary, skipping probate.
If your loved one dies without a will, it’s unlikely you can avoid going to Iowa probate court. Your loved one’s wishes are unknown because no will exists, so the court follows Iowa Statute 633.212 instead. This statute defines the intestate succession law that determines who should receive the assets. This law may divide the assets among a spouse, children, step-children, or other relatives, depending on who is surviving.
How the Probate Process Works in Iowa
After your loved one dies, the family files a will (if one exists) and the petition for probate with the county court. The situation could end up in district court later, but it starts in county court.
The court then assigns an executor or a personal representative to manage the probate process for the estate. Steps the personal representative performs include the following:
- Publishing notice of the person’s death in a local newspaper.
- Taking inventory of the assets that are part of the estate.
- Establishing an estimated value for those assets.
- Accepting valid claims from creditors and paying them out of the estate’s assets.
- Paying any taxes the estate owes.
- Distributing the remaining assets after paying claims.
- Closing the case with the probate court.
Iowa law allows for executor compensation. The executor receives payment for the work performed to manage the estate, as determined in Iowa Statute 633.197. Typical compensation in Iowa is about 2% of the estate’s value, but more or less is possible, depending on the situation’s complexity.
In Iowa, if the executor is one of the creditors for the estate, Iowa Statute 633.431 allows for the use of a temporary administrator. This temporary administrator would manage the claim of the executor and make the payment to the executor if the claim is valid.
Rockpoint Probate Funding Can Offer a Cash Advance To Help With Iowa Probate
While your inheritance is working through probate court, it can be quite frustrating. You may be counting on the money and assets you receive as an heir. But Rockpoint Probate Funding has come up with a practical solution to this problem.
We offer a cash advance service where you can unlock some of this money early. While the estate remains in the Iowa probate process, this cash advance can let you move forward with your financial needs without waiting for the slow wheels of administration to turn.
When determining the amount of cash you could receive, we do not rely on your credit score or employment status. Instead, we focus on the value of your inheritance. We do not have hidden fees, so you know the full financial terms up front.
Learn more about whether a cash advance is a good idea while your inheritance remains tied up in Iowa probate. Reach out to Rockpoint Probate Funding at (323) 484-1063 for a free consultation today.
