Payable-on-Death Deposit-Account Beneficiary Rules in Iowa
At a glance
| Accounts covered | State-bank deposits under § 524.805(8); state-credit-union share beneficiary accounts under § 533.309(4) (Iowa Code §§ 524.805, 533.309). |
|---|---|
| How the POD designation is made | Bank beneficiary designation must appear in the bank's deposit-account records; credit-union beneficiary name and residence address must be disclosed and account held in depositor's name for that person's benefit (Iowa Code §§ 524.805(8), 533.309(4)). |
| Who may be named | State bank: one or more designated persons; state credit union: a person other than the depositor (Iowa Code §§ 524.805(8), 533.309(4)). |
| Owner and beneficiary rights before death | Bank repayment follows the deposit's accepted terms; the credit-union depositor may withdraw the beneficiary-account balance during life (Iowa Code §§ 524.805(1), 533.309(4)). |
| Joint owner's priority over payee | Bank death transfer follows death of the depositors; separate bank and credit-union joint-account statutes authorize payment to named joint holders (Iowa Code §§ 524.805(8), 524.806, 533.309(2)). |
| If a payee dies first | The bank and credit-union provisions identify who receives on the depositors' death but do not prescribe a substitute-payee outcome when a named beneficiary died first (Iowa Code §§ 524.805(8), 533.309(4)). |
| Shares among surviving payees | A bank may name one or more persons; § 524.805(8) does not set a numerical split. The credit-union beneficiary-account clause is phrased for a beneficiary (Iowa Code §§ 524.805(8), 533.309(4)). |
| Changing the designation or using a will | The bank's account records identify designated payees, with repayment otherwise under accepted deposit terms; these sections state no separate change procedure or will override (Iowa Code §§ 524.805(1), (8), 533.309(4)). |
| Proof, payment, and bank discharge | Bank payment to the recorded designees does not make it liable for decedent debts or state estate, inheritance or succession taxes; a credit-union beneficiary or representative may withdraw after the depositor dies (Iowa Code §§ 524.805(8), 533.309(4)). |
Requirements one by one
State-bank designation
Iowa allows a state bank to accept a deposit from one or more people with a provision making the account the property of the person or persons designated in the bank's deposit-account records when the depositors die (§ 524.805(8)). The statute identifies the record, but does not prescribe a stand-alone beneficiary form or an initial percentage split. The bank repays deposits under the accepted terms and conditions (§ 524.805(1)).
Credit-union beneficiary account
A member making a state-credit-union deposit for someone else's benefit must disclose that person's name and residence address. The account remains in the depositor's name, for the beneficiary's benefit. The depositor may withdraw the balance during life; the beneficiary or legal representative may withdraw after the depositor dies (§ 533.309(4)).
Joint accounts and payment
The bank rule speaks of death of the depositors, including where more than one depositor established the account (§ 524.805(8)). Separate provisions permit payment to named holders of qualifying bank joint accounts (§ 524.806) and credit-union joint accounts (§ 533.309(2)). Neither beneficiary-account clause states a substitute-payee distribution if the beneficiary dies before the depositor. The bank provision permits several designees but gives no statutory numerical split (§ 524.805(8)).
What trips people up
Section 524.805(8) says bank payment to recorded designees does not make the bank liable for decedent debts or state estate, inheritance or succession taxes. The proceeds themselves remain subject to decedent debts; the discharge protects the bank, not a recipient from every claim.
Common questions
Can the credit-union depositor withdraw before death? Yes. Section 533.309(4) expressly permits it.
Does Iowa's bank statute require the designee in the bank's records? Yes. Section 524.805(8) identifies the person or persons shown on those records.
Do these sections set equal shares for several bank designees? Section 524.805(8) permits several designees without prescribing the split; the accepted account terms matter (§ 524.805(1)).
Statutes and sources
The quoted statutory passages and official code and enacted-act URLs appear above, with access dates.
Source links
Every statute quoted above, linked, with the date we checked it.
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