Detailed Answer
When someone dies, vehicles titled solely in the decedent’s name typically pass through probate as estate property. Certain title arrangements or transfers can remove a vehicle from the probate estate. Follow these steps under Iowa law:
1. Verify Title Status
Check the vehicle’s certificate of title. Iowa Code §321.46 governs transfer of ownership upon issuance of a title after death (Iowa Code §321.46). If the decedent held the vehicle alone without a transfer-on-death (TOD) designation or joint ownership, the vehicle is estate property. Conversely, if the decedent designated a beneficiary under a TOD contract, the vehicle passes directly to that beneficiary under Iowa Code §321.46A (Iowa Code §321.46A).
2. Identify Joint Ownership or Beneficiary Designation
If the decedent co-owned the vehicle as a joint tenant with right of survivorship (for instance, with a spouse), the surviving co-owner automatically receives full title upon death. This arrangement sidesteps probate. Likewise, a valid TOD designation listed on the title certificate transfers ownership outside the estate after death.
3. Assess Pre-Death Transfers
Review any transfers made within two years of death. Under Iowa’s Uniform Fraudulent Transfer Act (Ch. 684) and Iowa Code §633.263 (Iowa Code §633.263), gifts lacking adequate consideration shortly before death may face a presumption of fraudulent or inadequate transfer. If a gift transfer is set aside, the vehicle returns to the probate estate.
4. Address Sole Ownership without Valid Transfer
If the decedent was the sole owner and no valid TOD or joint-tenancy arrangement exists, the executor or administrator must include the vehicle in the probate estate. The personal representative can apply to the Iowa Department of Transportation for a new title in the estate’s name, then transfer title to beneficiaries according to the will or intestacy laws (Iowa Code §633.209).
Helpful Hints
- Obtain a certified copy of the death certificate to support title transfer.
- Review the certificate of title for TOD beneficiary information per Iowa Code §321.46A.
- Check for joint-tenancy language or spousal co-owner designation.
- Gather proof of consideration for any gifts given within two years of death to counter a fraudulent-transfer presumption.
- Contact the Iowa DOT title office for forms, fees, and processing timelines.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice tailored to your situation.