Search Our Online Library

Many Producers with 2020 or 2021 Disaster Losses Eligible for ERP

President Biden signed the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43) into law on September 30, 2021. It authorized $10 billion to assist agricultural producers impacted by wildfires, droughts, hurricanes, winter storms, and other eligible disasters experienced during calendar years 2020 and 2021. The USDA has determined that the money will be funding two new programs, the Emergency Livestock Relief Program (ELRP) and the Emergency Relief Program (ERP).

Claims against Personal Representative Must be Raised during Probate Proceedings

On May 6, 2022, the Iowa Supreme Court held that all claims involving administration of an estate must be asserted during the probate proceedings. A beneficiary of a will disputed the fees awarded to the personal representative of the estate. After the probate court reduced the fees awarded, the beneficiary initiated a separate lawsuit seeking damages. Because all estate administration disputes must first be raised during the probate proceedings, the Court affirmed the grant of summary judgment in favor of the personal representative.

Iowa Supreme Court Affirms Only the Benefit of Drainage System Repair Pertinent in Reclassification, not the Cost

On May 6, 2022, the Iowa Supreme Court affirmed that a drainage district improperly reclassified the benefits of a drainage tile repair project. A reclassification commission assessed the benefits conferred upon the railroad company at 100 percent because compliance with federal railroad safety regulations essentially doubled the cost of the project. The Court determined that only the benefit of the drainage repair project, not its cost, could be considered during reclassification.

Iowa Supreme Court Says Court Approval Necessary to Modify Irrevocable Trust after Death of a Settlor

On May 6, 2022, the Iowa Supreme Court affirmed that court approval is required to modify an irrevocable trust once one of the settlors has died. After one spouse passed away, a couple’s joint trust became irrevocable. The surviving spouse attempted to modify the trust by obtaining the written consent of all the trust beneficiaries. The Court ruled that the amendment was invalid because irrevocable trusts may be modified by either obtaining the consent of all the settlors and beneficiaries or by obtaining court approval. Iowa Code § 633A.2202-.2203. Here, because one of the settlors had died, she could not provide her consent, and court approval was required.

Iowa Law Limits Liability of Agricultural Tourism Farms

On May 19th, 2021, Governor Reynolds signed SF 356 into law establishing the “Iowa Agricultural Tourism Promotion Act.” See Iowa Code § 673A et seq. Agricultural tourism is a growing industry in Iowa. In 2017, Iowa had 350 agritourism operations, an increase from 275 in 2012.

An Overview of the Probate Process

Checklist for Probating a Will

When someone dies with a will, a surviving family member or other person close to the decedent must ensure that the decedent’s wishes specified in the will are followed. This usually requires the will to be “probated” or submitted to and administered by the court in the jurisdiction where the decedent lived.

Trustees, Executors, and Administrators: The Duties of Fiduciaries

Iowa Court Remands Priority Dispute Between Ag Lender and Ag Supply Dealer

On April 27, 2022, the Iowa Court of Appeals determined that the district court’s grant of summary judgment was not appropriate because genuine issues of material facts existed in a case involving the priority of competing perfected security interests and agricultural-supply-dealer liens. After a dairy operation liquidated its assets, there were insufficient proceeds to satisfy all claims against the farm. A financial institution and a feed dealer each claimed to have priority to these proceeds. Because the record did not adequately provide the facts necessary to resolve the dispute under Iowa Code chapters 554 and 570A, the court denied both parties’ motions for summary judgment and remanded the case for further proceedings.

Boundary by Acquiescence Inferred from Landowner’s Inaction

On April 13, 2022, the Iowa Court of Appeals affirmed that two plaintiffs established a boundary by acquiescence. The plaintiffs and their predecessors openly used a twenty-foot-wide strip of land between a fence on the adjoining property and the true boundary line for at least a ten-year period. The Court of Appeals found that the neighboring landowners were on notice that the plaintiffs used the disputed property; therefore, they consented to the fence as the boundary line.

Court Affirms that Land Distributed from Gifted Partnership Interest is Not Marital Property

Settling a Revocable Living Trust at the Death of the Grantor

Many people wishing to streamline the administration of their estates at death choose to create revocable living trusts.This checklist provides an overview of the trust administration process.

Vehicles: A Quick Guide After the Death of a Loved One

Most people die owning a vehicle, but fewer individuals know what to do with the car once a loved one passes. This guide reviews the basics. It explains the procedures under Iowa law, but those from other states may learn from the general conce

What to Do Immediately After the Death of a Loved One

Typically, there is no need to contact lawyer immediately after the passing of a loved one.[i] Instead, this is the time to focus on family needs and the disposition of the body. This checklist explains what should be done in the first weeks following a death until the death certificate is issued.

Iowa Provides Penalty Relief for Farmers Who File by May 2

On March 22, 2022, the Director of the Iowa Department of Revenue joined the IRS in granting estimated tax penalty relief to qualifying farmers who did not file their 2021 returns and pay their taxes by March 1, 2022. In Order 2022-1, Iowa waives the underpayment of estimated tax penalty for any qualifying farmer who files their 2021 Iowa income tax return and remits payment by May 2, 2022.

Federal District Court Finds Iowa’s Agricultural Trespass Law Unconstitutional

Iowa Code chapter 717A, sometimes referred to as Iowa’s “ag-gag” law, is once again the subject of federal litigation. On March 14, 2022, a federal judge from the Southern District of Iowa found the 2019 version of the law unconstitutional. Iowa Code § 717A.3B provides criminal penalties for those who, intending to harm an agricultural production facility, use deception to gain access to or employment with that facility. The judge held that the statute violated the First Amendment. Accordingly, she granted the plaintiffs’ motion for summary judgment.

Estimated Tax Penalty Relief Applies to All Qualifying Farmers

On March 3, IRS announced that it would be providing limited penalty relief for qualified farmers required to file Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations.

Transfer of Property into Trust Severed Joint Tenancy with Right of Survivorship

NOTE: In a January 27, 2023, opinion, the Iowa Supreme Court reversed the Court of Appeals decision finding that the severance of the joint tenancy created a presumption of two equal shares, with equitable adjustments allowed only for contributions made after the creation of the joint tenancy.

On March 2, 2022, the Iowa Court of Appeals affirmed a district court decision finding that the transfer of a joint tenant’s interest in real property into a trust severed the joint tenancy.

LLC Manager Not Entitled to Attorney Fees Incurred Litigating Against LLC

On March 4, 2022, the Iowa Supreme Court held that a manager of an LLC was not entitled to attorney fees incurred defending himself against claims brought by the LLC or prosecuting claims against the LLC. A manager of an LLC may recover costs incurred “in the course of the member’s or manager’s activities on behalf of the company.” Iowa Code § 489.408(1). Because the manager incurred costs litigating against the LLC, the Supreme Court reversed the district court and Court of Appeals rulings and held that the statute did not require the company to indemnify the manager.

Estate and Transition Planning FAQs

This article answers common questions that may arise during the estate and transition planning process.