Randal B. Caldwell Trusts and Estates Law Blog on Lawyers.com

Ancillary Estate Administration in Iowa

Monday, November 28, 2011 by Randal B. Caldwell

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Q:  My aunt passed away here in Texas but she owned a farm in Iowa.  I am executor of her estate.  What do I need to do with regard to the Iowa farm?

 

A: In order to pass the real estate to the beneficiaries of the will, in addition to estate administration in Texas you will need an Ancillary estate administration in Iowa.

 

An ancillary administration allows the duly appointed administrator the state where the nonresident lived to be appointed administrator in Iowa.  A resident of the state of Iowa must be appointed as co-fiduciary except in extraordinary circumstances (good cause shown).

 

In order to open the ancillary administration you will need an application for appointment of foreign administrator.  This must be accompanied by a certificate of the clerk of the Texas court certifying that the estate is under administration and a certification of the original letters of appointment.

 

Once the ancillary administration is opened you will need to publish notice, prepare a probate inventory of assets in Iowa at their date of death value and determine if Iowa inheritance tax is due.  Because Iowa farm land has increased in value recently (as much as 33% in the past year) you should have the farm appraised for purposes of establishing the tax basis of the property.  Also Iowa farm land is subject to Iowa inheritance tax if it passes to brothers, sisters, nieces and nephews, nonrelatives and in-laws.  This tax can be 5-10% for brothers and sisters and 10-15% for others.

The Iowa Inheritance Tax rate schedule can be found here:   http://www.iowa.gov/tax/forms/60061.pdf

 

If you need assistance with the ancillary administration of a foreign estate including preparation of the Inheritance tax return, you should contact an experienced Iowa estate attorney.                 

 
Posted at 13:59 PM
Topic: Trusts and Estates
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