Transfer-on-Death Deed

TRANSFER-ON-DEATH DEED — NOT CURRENTLY AVAILABLE IN IOWA

Table of Contents

1. Important Notice
2. Current Iowa Law
3. Pending Legislation
4. Alternative Non-Probate Transfer Methods
5. Revocable Living Trust
6. Joint Tenancy with Right of Survivorship
7. Life Estate Deed
8. Iowa-Specific Considerations
9. Comparison of Alternatives
10. Sources and References

1. Important Notice

Iowa does not currently authorize transfer-on-death (TOD) deeds for real property. Iowa has not adopted the Uniform Real Property Transfer on Death Act (URPTODA) or any equivalent statute. Legislation has been introduced (House File 125) but has not been enacted as of the date of this template.

2. Current Iowa Law

Iowa law does not recognize any deed instrument that automatically transfers real property upon the owner's death outside of probate. Real property in Iowa must pass through:

• Probate — through a valid last will and testament or intestate succession
• Non-probate ownership structures — joint tenancy with right of survivorship
• Trust-based transfers — property held in a revocable living trust
• Life estate deed — with designated remainder beneficiaries

3. Pending Legislation

House File 125 (HF 125) — Iowa Legislature

HF 125 would adopt the Uniform Real Property Transfer on Death Act in Iowa, creating new Iowa Code Chapter 633G.

Key Provisions (if enacted):

• Would authorize revocable, nontestamentary TOD deeds
• Would require recording before the transferor's death
• Would include optional statutory forms and revocation procedures
• Would state that TOD deeds do not affect the transferor's or beneficiary's eligibility for public assistance during the transferor's life

Legislative History:

• Introduced: January 27, 2025 (sponsored by Rep. Carter Nordman)
• Subcommittee recommended passage: February 6, 2025
• Not enacted as of April 2, 2026

4. Alternative Non-Probate Transfer Methods

Requires consent of all owners to sever.
*Can be revoked only with remainderman's consent (unless enhanced/Lady Bird style).

5. Revocable Living Trust

A revocable living trust is the most common and flexible alternative to a TOD deed in Iowa.

Key Features:

• Grantor retains full control during lifetime
• Fully revocable and amendable
• Property must be re-titled in the name of the trust via a recorded deed
• Successor trustee distributes property upon grantor's death without probate
• Iowa Trust Code (Iowa Code Chapter 633A) governs

Requirements:
☐ Trust agreement drafted and executed
☐ Deed transferring property to the trust recorded with the county recorder
☐ Trustee designated (typically the grantor during lifetime)
☐ Successor trustee designated for post-death administration

6. Joint Tenancy with Right of Survivorship

Key Features:

• Property automatically passes to surviving joint tenant(s) upon death
• No probate required for the transfer
• Iowa presumes tenancy in common unless joint tenancy is expressly stated (Iowa Code § 557.15)

Requirements:
☐ Deed must expressly create joint tenancy with right of survivorship
☐ Deed recorded with the county recorder
☐ Declaration of value must be filed if applicable

Cautions:

• Adding a joint tenant constitutes a present gift
• Exposes property to the co-tenant's creditors
• Cannot be revoked unilaterally
• May trigger gift tax consequences if non-spouse added
• Joint tenant has immediate ownership interest — not just a future expectancy

7. Life Estate Deed

Key Features:

• Owner retains a life estate (right to use and occupy during lifetime)
• Remainder interest vests in designated remainderman upon execution
• No probate required for the remainder interest transfer upon death

Cautions:

• Owner loses ability to sell or mortgage the full fee interest without remainderman's consent
• Remainderman has a present vested interest that may be subject to their creditors
• May constitute a disqualifying transfer for Medicaid purposes (the remainder interest is a gift)
• Less flexible than a revocable trust

8. Iowa-Specific Considerations

Homestead Rights

Iowa has strong homestead protections (Iowa Code Chapter 561). A homestead cannot be conveyed or encumbered without the consent of both spouses if the owner is married. This applies to all deed transfers, including deeds into trusts.

Spousal Elective Share

Iowa provides a surviving spouse with an elective share (Iowa Code § 633.236 — one-third of all property of the decedent). Any transfer strategy should account for the surviving spouse's statutory rights.

Medicaid Estate Recovery

Iowa has Medicaid estate recovery rules (Iowa Code § 249A.53) that may apply to property passing outside of probate, including property in trusts and joint tenancy. Consult an elder law attorney for Medicaid planning.

Iowa Real Estate Transfer Tax

Iowa imposes a real estate transfer tax (declaration of value) on conveyances of real property. Exemptions may apply for certain transfers (e.g., transfers to trusts where no consideration is paid).

Iowa Inheritance Tax

Iowa repealed its inheritance tax effective January 1, 2025, for deaths occurring on or after that date. For earlier deaths, the inheritance tax applied to transfers at death regardless of the transfer method.

No Tenancy by the Entirety

Iowa does not recognize tenancy by the entirety. Married couples who wish to hold property with survivorship rights must use joint tenancy with right of survivorship.

9. Comparison of Alternatives

10. Sources and References

• Iowa Code Chapter 557 — Real Property; Joint Tenancy (§ 557.15)
• Iowa Code Chapter 561 — Homestead
• Iowa Code Chapter 633 — Probate Code
• Iowa Code Chapter 633A — Iowa Trust Code
• Iowa Code § 633.236 — Surviving Spouse Elective Share
• Iowa Code § 249A.53 — Medicaid Estate Recovery
• House File 125 (2025) — Proposed Uniform Real Property Transfer on Death Act
• Uniform Real Property Transfer on Death Act (Uniform Law Commission, 2009)

This document is provided for informational purposes only and does not constitute legal advice. Iowa does not currently authorize transfer-on-death deeds for real property. Consult a licensed Iowa attorney for guidance on non-probate transfer strategies.