Estate Planning in Iowa

Like all states, Iowa recognizes formally executed wills and living trusts as valid estate planning tools. A standard will here requires 2Iowa Code § 633.279Verified Sep 16, 2026View source adult witnesses, and adding a notarized self-proving affidavit can streamline the probate process later.

An Iowa healthcare power of attorney is signed before either 2Iowa Code § 144B.5Verified Jul 15, 2026View source witnesses or a notary publicIowa Code § 144B.5Verified Jul 15, 2026View source. Witnesses must be at least 18 yearsIowa Code § 144B.5Verified Jul 15, 2026View source old and cannot be the named agent, the principal’s healthcare providers or employees of the facility where the principal is a patient. Those restrictions do not apply when the document is notarized instead of witnessed. The agent must be at least 18 yearsIowa Code § 144B.5Verified Jul 15, 2026View source old, and Iowa bars the principal’s healthcare providers and employees of the treating facility from serving, subject to the statute’s exceptions.

An Iowa financial power of attorney must be notarizedIowa Code § 633B.105Verified Sep 18, 2026View source; witnesses are not required. The document is durable by defaultIowa Code § 633B.105Verified Sep 18, 2026View source: it stays in effect if the principal becomes incapacitated. A springing power of attorney, one that takes effect only when the principal becomes incapacitated, is permittedIowa Code § 633B.105Verified Sep 18, 2026View source.

Iowa does not impose a state estate tax or inheritance tax, which means estates are only subject to the federal estate tax (currently exempting the first $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source per person, or $30,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source for married couples using portability). This is a meaningful advantage over the states that layer their own death taxes on top of the federal system.

Iowa does not require a revocable living trust to be notarizedIowa Code § 633A.1101 et seq. (Iowa Trust Code)Verified Jul 15, 2026View source. Iowa does not allow transfer-on-death deeds for real estate. Without this option, real property must pass through probate or be held in a trust to avoid court proceedings. Transferring property into a revocable trust does not trigger a property tax reassessment in Iowa, so property taxes remain at their current level.

Iowa automatically revokes an ex-spouse as beneficiary on life insurance, retirement accounts, and similar designations upon divorce. However, these automatic revocations can be overridden by a divorce decree or by re-designating the ex-spouse after the divorce.

Iowa authorizes remote online notarization (RON), allowing trusts, healthcare directives, powers of attorney to be notarized via video call from anywhere. However, wills are excluded from RON and still require in-person notarization.