Create a Living Trust in Iowa

A living trust can help you avoid the costs and time required to see your property through the probate process. Learn more about living trusts in Iowa.

Find out more about Living Trusts

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create a living trust in iowa

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Updated on: February 6, 2024
Read time: 3 min

Creating a living trust in Iowa can be a useful part of your estate planning. A revocable living trust places your assets into a trust during your life but you maintain control of them. A trust also provides some control of the assets after your death.

Living trusts in Iowa

An Iowa living trust is created by the grantor. The grantor transfers ownership of his assets into the trust. A trustee must be named, who is responsible for managing the assets for the benefit of the grantor. It is common to name yourself as trustee so you are in complete control. A successor trustee is in place to handle the trust after the grantor dies. The trustee is then responsible for distributing assets to the beneficiaries according to the terms of the trust. A revocable trust can be altered or deleted by the grantor during his lifetime. An irrevocable living trust is permanent.

Assets placed in a living trust pass on to your beneficiaries without going through probate. Iowa has not enacted the Uniform Probate Code, so having your estate go through probate can take many months and involves the expenses of an executor and attorney. There is a simplified probate procedure available for estates worth less than $100,000 and in this instance it may be less expensive to use this procedure than have a trust created.

Do I need a living trust in Iowa?

An Iowa living trust can be a useful tool. One of the many benefits is the control it offers. While you are alive, you continue to maintain complete control over your assets, living in your home and using your money as you wish. The trust can then provide conditions for how your assets are distributed to your beneficiaries after you die, providing for careful management of your family’s assets for years to come. When assets are passed in a will, they are distributed as soon as probate concludes. Trusts are more complex to challenge than wills are, making them more secure.

A living trust in Iowa provides privacy in a way that a will cannot. While it is sometimes necessary in Iowa to file a form indicating the value of the assets in a trust, an itemization is not required. The names of the beneficiaries are not released, nor are the terms of the trust.

A revocable living trust protects you should you become mentally incapacitated. All of your assets are already controlled, owned, and managed by the trust and a conservatorship proceeding is likely unnecessary for you to have your financial life managed for your benefit.

Living trusts and estate taxes in Iowa

Estate taxes cannot be avoided with most living trusts unless you create an AB, marital, or QTIP trust which passes assets directly from a spouse to a surviving spouse. Inheritance taxes in Iowa apply to estates over $25,000 but there is no tax when assets are passed to a spouse, child, grandchild, or charity. Federal estate tax applies to estates in excess of $5 million. A living trust does not protect assets from Medicaid spend down.

How to create a living trust in Iowa

Creating a living trust in Iowa occurs when you create a trust document and sign it in front of a notary public. You then transfer ownership of your assets into the trust to complete the process. A living trust is a useful way to maintain control over your assets and plan for the future.

Create a living trust online in Iowa online with LegalZoom. LegalZoom living trusts include a pour-over will, transfer deeds, a document organizer, and more.

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This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.

50 days ago
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Grateful to Patti Green

Patti Green helped me so much to finish my order. She was very patient and pleasant with me and guided me so well with my living trust. She made it clear and explained things that I could understand to finish this. She is an asset to your company and I would recommend her with excellence

CU
52 days ago
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I had no Idea what to do to update my…

I had no Idea what to do to update my Living Trust. They answered all my questions and they also helped me get info I did not know I needed.

Bryan Q
58 days ago
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Living Trust Premium

Our Representative, Stormy was fantastic! She stayed with us through the whole process. She was very helpful and thorough.

sremeikis
66 days ago
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I spoke to the representative today about a Trust...

I spoke to the representative today regarding a question about an existing Living Trust. She was very helpful - told me exactly what I needed to know and how to accomplish it. As a representative in the Financial field I guide clients all the time on where to get documents done right - and its always LegalZoom - easy and effecient!

Gareth
68 days ago
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LegalZoom

I was impressed by the user-friendly interface and the outstanding support I received while creating a Revocable Living Trust. The ability to connect with support representatives in real time to address my questions was incredibly valuable. For those looking to establish a straightforward trust, I can highly recommend LegalZoom.

TDM
74 days ago
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Rida has been very helpful with respect…

Rida has been very helpful with respect o guiding me through the process of properly revising the Living trust for my elderly parents. His patience has been exemplary.

Frantz Michel
82 days ago
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Elizabeth Tisdale

Elizabeth Tisdale, knowledgeable,been having problems with the forms in my living trust,for the past two weeks and had to pay every time, Elizabeth was patient with me and explained every detail until it was corrected,she get my 5 stars

MARIA CORONA
82 days ago
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Taking the Initiative

Taking the initiative to do the info. research on our living Trust...set up back in 2016..Made the call an efficient, as well as a pleasant experience. Very thorough and friendly. Set up our atty consultation Thanks for great service!

Vicki Switzer
89 days ago
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Carmen was so patient with me

Carmen was so patient with me! Thank you for all your direction and guidance with my living Trust! Great job!

Tina Garcia
92 days ago
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Tammy was wonderful and very…

Tammy was wonderful and very knowledgeable. It's because of her that I am going to open a living trust with legal zoom. She was great. Thank You

Erin
100 days ago
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Pleasant Experience

Patience and weel given explanation about the process of how a "Living Trust" & "Deed" works after transitioning and guidance on how to contact an attorney whenever I need legal advice.

Sharron Martin
100 days ago
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Excellent LegalZoom Attorney

The LegalZoom attorney was extremely helpful in the "walk thru" assistance as I prepared the Living Trust document. The service was excellent.

customer
109 days ago
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Happy with my initial contact with Legal Zoom

Rebecca fully answered my questions about creating a living trust. She is friendly and professional, and with my mind at ease, I am looking forward to starting this process with Legal Zoom. I am confident that this will be the best route for me to take to make things a lot easier for my family when I'm gone. (And, easy for me!) I plan to be in touch in the next several weeks. Thanks, Rebecca!

Carol
127 days ago
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Michelle very professionally guided me…

Michelle very professionally guided me with her knowledge and amazing patience through the entire process of setting up my Living Trust. I am so relieved and grateful for her help. I have used LegalZoom before and you are my go to for legal advice. Thank you again Michelle.

Paula Bateman
135 days ago
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Quality Staff

I needed to revise my entire living trust and had put it off for years. Your staff member Eden walked me through the process with such patience and concern. Had I known it would be so easy, I would have never put it off this long. A testament to you quality staff.

Ady Filipescu
144 days ago
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Really great job in guiding me to…

Really great job in guiding me to finish my living trust .

Ronnie Ball
150 days ago
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5 Stars

5 Stars – Outstanding Customer Service from Tammy at LegalZoom I had the pleasure of working with Tammy from LegalZoom regarding my living trust documents, and I couldn't be more impressed. She was professional, patient, and incredibly knowledgeable. Tammy took the time to walk me through every step, answered all my questions clearly, and made a complex process feel simple and stress-free. Her attention to detail and genuine care made all the difference. LegalZoom is lucky to have someone like her on their team. Thank you, Tammy!

Cn
150 days ago
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Ease and help of making changes to my…

Ease and help of making changes to my living trust. LegalZoom rep walked me through the process without any difficulties. Really like working with LegalZoom.

Gregory Bechtol
157 days ago
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Enjoyed working with Kevin to finalize…

Enjoyed working with Kevin to finalize our Living Trust language. His knowledge on this product certainly increases our confidence in the viability of the final document.

JOHN in CALIFORNIA
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