Detailed answer — overview of what happens in Iowa

When a person dies without a will (intestate) in Iowa, what happens to their money and property depends on how each item is titled and whether someone else is named as a beneficiary. Iowa distinguishes between probate assets (property that must pass through the courts under the intestacy rules) and non‑probate assets (property that passes automatically to another person outside probate).

1. Non‑probate assets usually pass outside probate

Assets that include an express right of survivorship or an effective beneficiary designation transfer automatically to the surviving owner or beneficiary and generally do not become part of the decedent’s probate estate. Common examples:

• Joint tenancy with right of survivorship (real estate or bank accounts titled jointly with survivorship language): the surviving joint owner typically becomes sole owner automatically at death.
• Tenancy by the entirety (for married couples, for certain real property): the surviving spouse usually takes the entire property automatically.
• Payable‑on‑death (POD) or transfer‑on‑death (TOD) accounts and other accounts with a named beneficiary: the named beneficiary receives the asset outside probate.

In practice, banks and other institutions will generally require a death certificate and identification from the surviving joint owner or beneficiary before releasing funds. If there is a dispute about ownership, institutions may refuse to release funds until the dispute is resolved or a court order is provided.

2. Property titled solely in the decedent’s name goes through probate

Assets held only in the decedent’s name and without a beneficiary designation are probate assets. When there is no will, Iowa’s intestacy rules determine who inherits those probate assets. The probate court supervises appointment of an administrator and distribution of estate property under Iowa’s intestacy statutes.

For the statutory rules that govern intestate succession and probate administration, see Iowa Code chapter 633: Iowa Code chapter 633 (Decedents’ Estates).

3. How creditors and taxes can affect jointly held and non‑probate assets

Even if funds pass outside probate, creditors may still try to reach those assets if law allows. Whether a creditor can seize a jointly held account depends on the account’s ownership characteristics and Iowa law. For example, if the decedent contributed all funds to a joint account and intended the survivor to hold the account only as a convenience, a creditor of the decedent may assert a claim. The precise outcome depends on facts and sometimes court decisions.

4. Common fact patterns and typical outcomes

Below are illustrative examples of typical outcomes under Iowa practice (facts are hypothetical):

• Married couple with joint bank account titled ‘Alice and Bob, joint tenants with right of survivorship’: If Alice dies without a will, Bob becomes sole owner of the account automatically by survivorship; the account normally does not pass through probate.
• Decedent had sole title to a house and no beneficiaries: The house is a probate asset. The court appoints an administrator and the house is distributed under Iowa’s intestacy rules (for example, to a surviving spouse and/or children according to Iowa Code chapter 633).
• Account with POD beneficiary named: The named beneficiary receives the funds outside probate once the bank verifies the death and beneficiary status.
• Account titled as ‘tenants in common’: The decedent’s share is a probate asset that passes under intestacy to heirs, not automatically to the other tenant.

5. Small estates and simplified procedures

Iowa provides simplified procedures for small estates in some situations so heirs can collect certain assets without full probate. Whether a small estate procedure applies depends on the estate’s value and the type of asset. Check Iowa Code chapter 633 and local probate court rules for details or ask a probate clerk how the process works in your county.

6. Practical steps institutions commonly take

Banks, title companies, and county recorders typically rely on the document titles and beneficiary designations. They will often not look behind a clear survivorship designation. But if there is conflicting documentation (a later will, inconsistent account signatures, or litigation between heirs), an institution may freeze assets and require a court order or proof of authority (letters of administration) before releasing funds.

7. When to consult an attorney

Talk with an Iowa probate attorney if you encounter any of these situations: competing claims to jointly held property, creditor claims against non‑probate assets, unclear account titles, suspected fraud (e.g., unjustified additions of a name to an title prior to death), or if the estate’s value means a formal probate is likely. An attorney can review documents, explain applicable statute language, and represent you before the probate court.

Helpful Hints

• Get multiple certified copies of the death certificate early. Banks and other institutions require them.
• Check how each asset is titled: sole name, joint with right of survivorship, tenancy in common, payable‑on‑death, or beneficiary‑designated.
• If you find no will, locate important documents (account statements, deeds, beneficiary forms) before speaking with a probate clerk or attorney.
• If a bank refuses to release funds or a title is disputed, request an explanation in writing and ask whether the institution requires a court order or letters of administration.
• Keep records of contributions to joint accounts if you believe an account was not intended as a gift. These records can matter in disputes.
• Use the Iowa Code for statutory guidance on intestacy and probate: Iowa Code chapter 633.
• Contact your county probate clerk (Iowa Judicial Branch) for local forms and procedural guidance: Iowa Judicial Branch.
• When in doubt, consult a licensed Iowa attorney — this article is informational and not legal advice.