The Iowa Supreme Court, on November 17, 2017, issued an opinion interpreting a definition utilized in an inheritance tax exemption. The Court points out that for many years prior to 1997 the Iowa inheritance tax had an unlimited exemption for any share of the estate passing to the surviving spouse, limited exemptions for lineal descendants and lineal ascendants and no exemption for step-children. In 1997, the Legislature eliminated inheritance tax on property passing to parents, grandparents, great grandparents, children, stepchildren, grandchildren and great grandchildren among others. In 2003, the Legislature added a definition for “stepchild” which defined “stepchild” as the
More Legal News & Information... →The Iowa Department of Revenue has had a long standing position that it will not accept Family Settlement Agreements to change the calculation of Iowa Inheritance Tax. The Department has always relied on the original Will or Trust to calculate the amount of inheritance tax owed to the State of Iowa. A recent Iowa Court of Appeals decision has changed the long standing policy regarding Family Settlement Agreements. Family Settlement Agreements arise in estates or trusts where the beneficiaries of the Estate or Trust agree to enter into an agreement to change how the assets of the Estate or Trust
More Legal News & Information... →Many clients inquire as to the process to donate one’s body to the University of Iowa for scientific purposes. In order to be effective, the University of Iowa requires that a Deed of Disposition of Body for Scientific Purposes be on file with the University prior to an individual’s death. The Deed of Disposition of Body for Scientific Purposes can be executed by a person who is 18 years of age and competent. The University retains the right to not accept the body if it is not appropriate for their needs. The family of the donor or the estate of
More Legal News & Information... →I have written previously in this Blog regarding the use of Medical Power of Attorneys and Financial Power of Attorneys. One of the benefits of the Health and Financial Powers is that in many cases they can be used to avoid setting up a formal Guardianship and Conservatorship with the Court. The Guardian makes medical and social decisions for the Ward and also decides on where the Ward will reside. The Conservator handles the Ward’s property and finances. Either an individual or a bank may act as a Guardian or Conservator. Guardians and Conservators are required to file annual reports
More Legal News & Information... →I frequently see clients come into my office who have met with their banker and set up joint tenancy with rights of survivorship bank accounts naming another person who is not their spouse as the joint tenant on the account. Often times a client simply wants to name another person to write checks on the account. Note that there is a difference between adding another person with signature authority versus adding another person as a joint tenant. A person with only signature authority does not have ownership of the account and only has the power to write checks on the
More Legal News & Information... →On April 20, 2017, Governor Branstad signed the Iowa Uniform Fiduciary Access to Digital Assets Act which is codified in Chapter 638 of the Iowa Code. The Act broadly defines “digital asset” to mean any electronic record in which an individual has a right or interest. However, the term “digital asset” does not include an underlying asset or liability unless the asset or liability is itself an electronic record and the term “digital asset” does not include health information or individually identifiable health information as those terms are defined in the Federal Health Insurance Portability and Accountability Act of 1996.
More Legal News & Information... →Chapter 635 of the Iowa Code sets forth a provision dealing with the administration of small estates. In order to qualify for a small estate, the gross value of the probate assets of a decedent must not exceed $100,000.00. Probate assets do not include life insurance proceeds and retirement plan benefits if such items pass by designation of beneficiary form. The provisions for fees for the personal representative and the attorney for the estate are different from the regular probate provisions set out in Chapter 633 of Iowa Code. Under the small estate statute, the fees for the personal representative
More Legal News & Information... →Last month I discussed in detail Living Will documents which are used to insure the rights and desires of terminally ill or comatose individuals are honored. This month I will focus on Powers of Attorney for Health Care Decisions and how they work with Living Wills. If a person is unable to make health care decisions and does not have a Power of Attorney for Health Care Decisions, it is necessary to file a Petition for Appointment of Guardian with the Iowa District Court to appoint a Guardian to make health care decisions and decisions as to where the individual
More Legal News & Information... →Iowa law allows for individuals to execute Living Wills to insure that the rights and desires of terminally ill or comatose individuals are honored. The document takes the decision making burden away from your family members. Your physician will make sure your desires are accomplished. Pursuant to the Living Will, you direct your physician to withhold life-sustaining procedures in the event you have an incurable or irreversible condition that will result in death within a relatively short period of time or a state of permanent unconsciousness from which, to a reasonable degree of medical certainty, there can be no recovery.
More Legal News & Information... →On October 1, 2016, Ned P. Miller will change his status from a Shareholder to “Of Counsel”. The “Of Counsel” designation indicates that Ned is on a semi-retirement basis and will continue his practice in fewer or more select areas of the practice of law. He will also be available to the firm for consultation and advice as needed. Our firm will remain in the same location and we will continue to practice in the same areas of the practice of law. James D. Beatty will continue as a Shareholder and will continue to practice full time. In the future,
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