$100,000 limit for Small Estate Affidavit in Iowa

Author: Hope Wood

There is a new law in Iowa. Effective July 1, 2026, a small estate affidavit can be used, in lieu of probate, if the value of personal property subject to probate is $100,000 or less and the decedent’s real estate interest was not subject to probate. The value of personal property is an increase from the prior law that had a $50,0000 limit.

By amending Iowa Code 633.356, the Iowa legislature has helped loved ones transfer personal property without probate when the value of personal property is $100,000 or less and there the estate does not have an interest in real estate.

What was the law before July 1, 2026?

Iowa Code section 633.356 allowed a decedent’s personal property to transfer by affidavit if the total value was $50,000 or less and there was no real property owned by the decedent after death.

Personal property is everything that is not real property or intellectual property. A bank account owned by the decedent is personal property. Before July 1, 2026, if the value of a decedent’s account(s) were more than $50,000, then the probate court had to supervise the transfer. Probate was not needed if the bank account had one of the following: (1) a joint owner; or (2) had a payable on death (POD) designee. In these situations, the ownership of the bank account transfers by law at the date of death to the joint owner or POD designee. If the value of the decedent’s account(s) were less than $50,000 then a small estate affidavit could be used in lieu of probate.

If the decedent was the sole owner of real estate at the date of death, then a small estate affidavit could not be used. This is true even if the personal property was less than $50,000. This is the same with the amended law; if real estate did not transfer to a surviving joint owner or through the decedent’s trust, then a small estate affidavit cannot be used.

What is the law after July 1, 2026?

The change in the law is the value of the decedent’s personal property can now be $100,000; increased from $50,000. The remainder of the law has the same application. The example above regarding a joint owner and POD is the same under the new law. Those accounts transfer by law at the date of death. Additionally, if an account has a named beneficiary, then the account transfers to the named beneficiary. For example, a life insurance policy with a surviving beneficiary transfers to the beneficiary without the need for probate or a small estate affidavit.

Sole ownership of real estate at the date of death is still a restriction on using a small estate affidavit. If real estate did not transfer to a surviving joint owner or through the decedent’s trust then probate is required to transfer real estate.

To illustrate the new law, see the image below.

When is the Iowa small estate affidavit law effective?

The amended Iowa 633.356 is effective on July 1, 2026. According to Iowa Code 3.7, a law that is signed during the regular legislative session is effective July 1, 2026. A law can specify the active date or the retroactive date, but for this law, there was no explicit effective date.

What date of death can be used for a small estate affidavit?

The amended Iowa 633.356 does not include a date of death. This can be interpreted to mean that the small estate affidavit is available for any date of death if the requirements of the law are satisfied. If the Iowa legislature intended the law to only apply to a date of death after July 1, 2026, then they would have included the restriction in the language of the law. The legislature did not include a date of death requirement.

How do I get a small estate affidavit?

A small estate affidavit may be provided by the holder of the account. For example, a bank may have a form they prepared that includes the language of the law. An Iowa attorney can prepare a small estate affidavit for the person who is authorized by law to sign the affidavit.

Using AI to write a small estate affidavit.

Whether AI is sophisticated enough to prepare a legal document is questionable. The holder of the account will determine if the affidavit satisfies the legal requirements.

Using an attorney to write a small estate affidavit.

Having an attorney prepare the small estate affidavit will cost money but it will reduce your stress.

Can I use a small estate affidavit if the estate is in probate?

It depends on the other assets that are transferring through probate. The diagram above provides a guide as to whether you can ask the court to prematurely close probate. If probate is open, then there is a court-appointed administrator who is able to access the account that may otherwise be transferred by a small estate affidavit. Because the answer to this question depends on your specific situation, we recommend consulting an attorney.

Hope Wood JD specializes in probate and can be your guide. Schedule a probate consultation today. In the consultation, you will receive legal advice about the legal options to transfer assets of a decedent. At the end of the consultation, you will receive a flat fee price if you want to hire Hope Wood JD for your legal needs. Even if you don’t hire us, you will leave the consultation with a wealth of knowledge about transferring assets.

Hope Wood, Attorney and Law Firm Owner

I feel incredibly lucky to have helped more than 1,200 Iowans with their estate plan.

I specialize in estate planning, trust administration, and probate so I can be all in on what you need for your legacy.