Iowa Code

Iowa Code § 450.3 (2026)

Property included

✓ current as of July 2026

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The tax imposed under this chapter shall be collected upon the net market value, and shall go into the general fund of the state, to be determined as provided in this chapter, of any property passing as follows: 1. By will or under the statutes of inheritance of this or any other state or country. 2. By deed, grant, sale, gift, or transfer made within three years of the death of the grantor or donor, which is not a bona fide sale for an adequate and full consideration in money or money’s worth and which is in excess of the annual gift tax exclusion allowable for each donee under section 2503, subsections (b) and (e), of the Internal Revenue Code. If both spouses consent, a gift made by one spouse to a person who is not the other spouse is considered, for the purposes of this subsection, as made one half by each spouse under the same terms and conditions provided for in section 2513 of the Internal Revenue Code. The net market value of a transfer described in this subsection shall be the net market value determined as of the date of the transfer. 3. By deed, grant, sale, gift, or transfer made or intended to take effect in possession or enjoyment after the death of the grantor or donor. A transfer of property in respect of which the transferor reserves to the transferor a life income or interest shall be deemed to have been intended to take effect in possession or enjoyment at death, provided, that if the transferor reserves to the transferor less than the entire income or interest, the transfer shall be deemed taxable thereunder only to the extent of a like proportion of the value of the property transferred. 4. To the extent of any property with respect to which the decedent has at the time of death a general power of appointment, or with respect to which the decedent has within three years of death exercised or released a general power of appointment by a disposition which is of a nature that if it were a transfer of property owned by the decedent, the property would be includable in the decedent’s gross estate under this section whether the general power was created before or after the taking effect of this chapter. A transfer involving creation of a general power of appointment shall be treated as a transfer of a fee or equivalent interest\n\nTue Dec 09 22:11:08 2025 Iowa Code 2026, Chapter 450 (43, 1) 3 INHERITANCE TAX, §450.3\n\nin the property subject thereto to the donee of the power. Any transfer involving creation of any other power of appointment shall be treated, except when an election is made under subsection 7, as the transfer of a life estate or term of years in the property subject thereto to the donee of the power and as the transfer of the remainder interests to those who would take if the power is not exercised. 5. Property which is held in joint tenancy by the decedent and any other person or persons or any deposit in banks, or other institution in their joint names and payable to either or to the survivor, except such part as may be proven to have belonged to the survivor; or any interest of a decedent in property owned by a joint stock or other corporate body whereby the survivor or survivors become beneficially entitled to the decedent’s interest upon the death of a shareholder. However, if such property is so held by the decedent and the surviving spouse as the only co-owners, one half of such property is not subject to taxation under the provisions of this chapter, but if the surviving spouse proves that the surviving spouse contributed to acquisition of such property an amount, in money or other property, greater than one half of the cost of the property held in joint tenancy, the portion of such property which is not subject to taxation under the provisions of this chapter shall be the proportion which the actual contribution by the surviving spouse is of the total contribution to acquisition of such property. The tax imposed upon the passing of property under the provisions of this subsection shall apply to property held under all such contracts or agreements whether made before or after the taking effect of this chapter. 6. When the decedent shall have disposed of the decedent’s estate in any manner to take effect at the decedent’s death with a request secret or otherwise that the beneficiary give, pay to, or share the property or any interest therein received from the decedent, with other person or persons, or to so dispose of beneficial interests conferred by the decedent upon the beneficiaries as that the property so passing would be taxable under the provisions of this chapter if passing directly by will or deed from the decedent owner to those to receive the gift from the beneficiary, compliance with such request shall constitute a transfer taxable under the provisions of this chapter, at the highest rate possible in like cases of transfers by will or deed. 7. a. Which qualifies as a qualified terminable interest property as defined in section 2056(b)(7)(B) of the Internal Revenue Code, shall, if an election is made, be treated and considered as passing in fee, or its equivalent, to the surviving spouse in the estate of the donor-grantor. Property on which the election is made shall be included in the gross estate of the surviving spouse and shall be deemed to have passed in fee from the surviving spouse to the persons succeeding to the remainder interest, unless the property was sold, distributed, or otherwise disposed of prior to the death of the surviving spouse. A sale, disposition, or disposal of the property prior to the death of the surviving spouse shall void the election, and shall subject the property disposed of, less amounts received or retained by the surviving spouse, to tax in the donor-grantor’s estate in the same manner as if the tax had been deferred under sections 450.44 through 450.49. b. Unless the will or trust instrument provides otherwise, the estate of the surviving spouse shall have the right to recover from the persons succeeding to the remainder interests, the additional tax imposed, if any, without interest, on the surviving spouse by reason of the election being made. The amount of tax recovered, if any, shall be a credit in the donee’s estate against the tax imposed on the qualified terminable interest property. c. An election under this subsection can only be made if an election in relation to the qualified terminable interest property is also made for federal estate tax purposes. d. The director of revenue shall adopt and promulgate all rules necessary for the enforcement and administration of this subsection including the form and manner of making the election. [C97, §1467; S13, §1481-a; C24, 27, 31, 35, 39, §7307; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §450.3] 84 Acts, ch 1240, §1; 85 Acts, ch 148, §2, 3; 85 Acts, ch 230, §12; 86 Acts, ch 1237, §27; 88 Acts, ch 1028, §36; 2003 Acts, ch 95, §3, 24; 2003 Acts, ch 145, §286; 2011 Acts, ch 25, §143; 2019 Acts, ch 59, §135 Referred to in §450.8\n\nTue Dec 09 22:11:08 2025 Iowa Code 2026, Chapter 450 (43, 1) §450.4, INHERITANCE TAX 4

Notes of Decisions

Cited in 31 cases, 1953–2020 · leading case: Beverly Gardiner Nance v. Iowa Dep't of Revenue, 908 N.W.2d 261 (Iowa 2018).

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Beverly Gardiner Nance v. Iowa Dep't of Revenue, 908 N.W.2d 261 (Iowa 2018). · cites it 5× “See Iowa Code § 450.3 . Beverly’s argument also ignores the language in Seeley providing that “contracting parties do not determine to whom title passes from decedent.”

In Re the Est. of Martin, 710 N.W.2d 536 (Iowa 2006). · cites it 18× “…gift or transfer made or intended to take effect in possession or enjoyment after the death of the grantor or donor. Iowa Code § 450.3 .”

Varnum v. Brien, 763 N.W.2d 862 (Iowa 2009). “§ 450.3 (inheritance rights of surviving spouses); id.”

Lynch v. Merchants Nat'l Bank of Cedar Rapids, 491 N.W.2d 157 (Iowa 1992). · cites it 8× “See Iowa Code § 450.3 ; 701 Iowa Admin.Code § 86.”

In Re Est. of Thomann, 649 N.W.2d 1 (Iowa 2002). · cites it 2× “Under Iowa Code section 450.3(5) (1999), only a surviving joint tenant’s accre-tive interest is taxable.”

In Re Est. of Rutter, 633 N.W.2d 740 (Iowa 2001). · cites it 2× “Although these transfers were within three years of Henrietta’s death and therefore includable in her estate for tax purposes, see Iowa Code § 450.3 (2); I.R.C. § 2503 (1994), they were not listed in the estate’s Iowa inheritance and estate tax return, as required under Iowa law.”

Iowa Supreme Court Bd. of Prof'l Ethics & Conduct v. Evans, 537 N.W.2d 783 (Iowa 1995). · cites it 2× “2 (1995) (real estate outside of state) and section 450.3(5) (joint tenancy property attributed to spouse), certain assets are not includable for inheritance tax purposes.”

Lamoureux v. Iowa Dep't of Revenue, 412 N.W.2d 628 (Iowa 1987). · cites it 4× “Iowa Code § 450.3 (5) (1987). If section 633.”

Est. of Dieleman v. Dep't of Revenue, 222 N.W.2d 459 (Iowa 1974). · cites it 5× “The department concentrates its attention on the following portion of § 450.3: “The tax hereby imposed shall be collected upon the net market value and shall go into the general fund of the state to be determined as herein provided, of any property passing: 1.”

Van Duzer v. Iowa State Dep't of Revenue, 369 N.W.2d 407 (Iowa 1985). · cites it 4× “The first sentence of subparagraph (3) of section 450.3 mandates the collection of the inheritance tax by the department of revenue on all property passing by transfers “made or intended to take effect after the death of the grantor or donor.”

In Re Est. of Sheimo, 156 N.W.2d 681 (Iowa 1968). · cites it 4× “Section 450.3(3) Code, 1966 includes, for inheritance tax purposes, property "intended to take effect in possession or enjoyment after the death of the grantor or donor.”

Matter of Est. of Bliven, 236 N.W.2d 366 (Iowa 1975). · cites it 2× “4(2) was not applicable since transfer to the charities was not one which would have been taxable in the first instance under § 450.3, even without *369 the exemption statute, because such transfer was not by will or under statutes of inheritance and (2) title to property…”

Show all 31 citing cases →

— Iowa Code § 450.3(1) — 2 cases

In Re the Est. of Brown, 205 N.W.2d 925 (Iowa 1973).

Est. of Dieleman v. Dep't of Revenue, 222 N.W.2d 459 (Iowa 1974). “The department concentrates its attention on the following portion of § 450.3: “The tax hereby imposed shall be collected upon the net market value and shall go into the general fund of the state to be determined as herein provided, of any property passing: 1.”

— Iowa Code § 450.3(2) — 1 case

— Iowa Code § 450.3(3) — 7 cases

Beverly Gardiner Nance v. Iowa Dep't of Revenue, 908 N.W.2d 261 (Iowa 2018). “See Iowa Code § 450.3 . Beverly’s argument also ignores the language in Seeley providing that “contracting parties do not determine to whom title passes from decedent.”

In Re Est. of Sheimo, 156 N.W.2d 681 (Iowa 1968). “Section 450.3(3) Code, 1966 includes, for inheritance tax purposes, property "intended to take effect in possession or enjoyment after the death of the grantor or donor.”

Van Duzer v. Iowa State Dep't of Revenue, 369 N.W.2d 407 (Iowa 1985). “The first sentence of subparagraph (3) of section 450.3 mandates the collection of the inheritance tax by the department of revenue on all property passing by transfers “made or intended to take effect after the death of the grantor or donor.”

In Re the Est. of Martin, 710 N.W.2d 536 (Iowa 2006). “…gift or transfer made or intended to take effect in possession or enjoyment after the death of the grantor or donor. Iowa Code § 450.3 .”

Klosterboer v. Engelkes, 127 N.W.2d 111 (Iowa 1964).

— Iowa Code § 450.3(4) — 1 case

Lynch v. Merchants Nat'l Bank of Cedar Rapids, 491 N.W.2d 157 (Iowa 1992). “See Iowa Code § 450.3 ; 701 Iowa Admin.Code § 86.”

— Iowa Code § 450.3(5) — 9 cases

In Re Est. of Thomann, 649 N.W.2d 1 (Iowa 2002). “Under Iowa Code section 450.3(5) (1999), only a surviving joint tenant’s accre-tive interest is taxable.”

Iowa Supreme Court Bd. of Prof'l Ethics & Conduct v. Evans, 537 N.W.2d 783 (Iowa 1995). “2 (1995) (real estate outside of state) and section 450.3(5) (joint tenancy property attributed to spouse), certain assets are not includable for inheritance tax purposes.”

Matter of Est. of Bolton, 403 N.W.2d 40 (Iowa Ct. App. 1987).

Hyland v. Standiford, 111 N.W.2d 260 (Iowa 1961).

Farnsworth v. Iowa State Tax Comm'n, 132 N.W.2d 477 (Iowa 1965).

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.