Senate Study Bill 3007 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON ZAUN) A BILL FOR An Act relating to probate by the distribution of decedent’s 1 property by affidavit, requiring certain affirmations in the 2 affidavit, and including an applicability provision. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5193XC (2) 87 asf/rj

S.F. _____ Section 1. Section 633.356, subsections 1, 3, and 10, Code 1 2018, are amended to read as follows: 2 1. When the gross value of the decedent’s personal property 3 that would otherwise be distributed by will or intestate 4 succession is or has been, at any time since the decedent’s 5 death, twenty-five fifty thousand dollars or less and there 6 is no real property or the real property passes to persons 7 exempt from inheritance tax as joint tenants with full rights 8 of survivorship, and if forty days have elapsed since the death 9 of the decedent, a successor as defined in subsection 2 may, by 10 furnishing an affidavit prepared pursuant to subsection 3 or 11 8 , and without procuring letters of appointment, do any of the 12 following with respect to one or more items of such personal 13 property: 14 a. Receive any item of tangible personal property of the 15 decedent. 16 b. Have any evidence of a debt, obligation, interest, 17 right, security, or chose in action belonging to the decedent 18 transferred. 19 c. Collect the proceeds from any life insurance policy or 20 any other item of property for which a beneficiary has not been 21 designated. 22 3. a. To collect money, receive tangible personal property, 23 or have evidences of intangible personal property transferred 24 under this section , a successor shall furnish to the holder of 25 the decedent’s property an affidavit under penalty of perjury 26 stating all of the following: 27 (1) The decedent’s name, social security number, and date 28 and place of death. 29 (2) That at least forty days have elapsed since the death 30 of the decedent, as shown by an attached certified copy of the 31 death certificate of the decedent. 32 (3) That the gross value of the decedent’s personal property 33 that would otherwise be distributed by will or intestate 34 succession is, or has been at any time since the decedent’s 35 -1- LSB 5193XC (2) 87 asf/rj 1/ 4

S.F. _____ death, twenty-five fifty thousand dollars or less and there is 1 no real property or the real property passes to persons exempt 2 from inheritance tax as joint tenants with full rights of 3 survivorship. 4 (4) A general description of the property of the decedent 5 that is to be paid, transferred, or delivered to or for the 6 benefit of each successor. 7 (5) The name, address, tax identification number and 8 relationship to the decedent of each successor, and whether any 9 successor is under a legal disability. 10 (6) If applicable pursuant to subsection 2 , paragraph “a” , 11 that the attached copy of the decedent’s will is the last will 12 of the decedent and has been delivered to the office of a clerk 13 of the district court in accordance with Iowa law. 14 (7) That no persons other than the successors listed in the 15 affidavit have a right to the interest of the decedent in the 16 described property. 17 (8) That the affiant requests that the described property be 18 paid, delivered, or transferred to or for the benefit of each 19 successor. 20 (9) That no debt is owed to the department of human services 21 for reimbursement of Medicaid benefits; or if debt is owed, 22 that the debt will be paid to the extent of funds received 23 pursuant to the affidavit. 24 (10) That no inheritance or other taxes are owed to the 25 department of revenue, or if taxes are owed, that the taxes 26 will be paid to the extent of funds received pursuant to the 27 affidavit. 28 (11) That creditors, if any, will be paid to the extent of 29 funds received pursuant to the affidavit. 30 (9) (12) That the affiant affirms under penalty of perjury 31 that the affidavit is true and correct. 32 b. If there are two or more successors, any of the 33 successors may execute an affidavit under this subsection . 34 10. Upon receipt of an affidavit under subsection 3 and 35 -2- LSB 5193XC (2) 87 asf/rj 2/ 4

S.F. _____ reasonable proof under subsection 5 of the identity of each 1 successor seeking distribution by virtue of the affidavit, the 2 holder of the property shall disclose to the affiant whether 3 the value of the property held by the holder is, or has been at 4 any time since the decedent’s death, twenty-five fifty thousand 5 dollars or less. An affidavit furnished for the purpose of 6 determining whether the value of the property is, or has been 7 at any time since the decedent’s death, twenty-five fifty 8 thousand dollars or less need not contain the language required 9 under subsection 3 , paragraph “a” , subparagraph (3), but shall 10 state that the affiant reasonably believes that the gross value 11 of the decedent’s personal property that would otherwise be 12 distributed by will or intestate succession is, or has been at 13 any time since the decedent’s death, twenty-five fifty thousand 14 dollars or less and there is no real property or the real 15 property passes to persons exempt from inheritance tax as joint 16 tenants with full rights of survivorship. 17 Sec. 2. APPLICABILITY. This Act applies to estates of 18 decedents dying on or after July 1, 2018. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill amends probate Code section 633.356 to allow 23 for the distribution of decedent’s property by affidavit in 24 estates as large as $50,000. Under current law, only property 25 in estates that are $25,000 or less are able to be distributed 26 by affidavit. The bill changes the affidavit requirement to 27 require the affiant to attest the property is valued at $50,000 28 or less. 29 The bill also adds components to the affidavit that the 30 successor must furnish to the holder of the decedent’s property 31 in order to collect money, receive tangible personal property, 32 or have evidences of intangible personal property transferred 33 under Code section 633.356. The affidavit must indicate that 34 there is no debt owed to the department of human services for 35 -3- LSB 5193XC (2) 87 asf/rj 3/ 4

S.F. _____ reimbursement of Medicaid benefits; or if there is, it will be 1 paid to the extent of funds received pursuant to the affidavit. 2 The affidavit must also indicate that there are no inheritance 3 or other taxes owed to the department of revenue, or if there 4 are, they will be paid to the extent of funds received pursuant 5 to the affidavit. Finally, the affidavit must indicate that 6 creditors, if any, will be paid to the extent of funds received 7 pursuant to the affidavit. 8 The bill applies to estates of decedents dying on or after 9 July 1, 2018. 10 -4- LSB 5193XC (2) 87 asf/rj 4/ 4