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Under Iowa Code Ch. 450, life insurance proceeds that are paid to a \u201cnamed beneficiary\u201d are exempt from Iowa inheritance tax.
Iowa is planning to completely repeal the inheritance tax by 2025. Iowa does not have a gift tax. The federal gift tax has a $15,000 per year exemption for each gift recipient in 2021 and $16,000 in 2022.
As part of the reform bill Governor Reynolds signed into law on June 16, 2021, Iowa's inheritance tax will be phased out over four years. Iowa was one of just six states in the country to still impose an inheritance tax.
Spouses, children, and parents of a deceased person are exempt from Iowa inheritance tax, while other inheritors might have to pay. Update: In 2021, Iowa decided to repeal its inheritance tax by the year 2025. In the meantime, there is a phase-out period before the tax completely disappears.
Iowa is planning to completely repeal the inheritance tax by 2025. Iowa does not have a gift tax. The federal gift tax has a $15,000 per year exemption for each gift recipient in 2021 and $16,000 in 2022.
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On May 19th, 2021, the Iowa Legislature similarly passed S.F. 619, a law which will phase out inheritance taxes at a rate of 20% per year, and completely eliminate the tax by January 1st, 2025.
For example, joint tenancy property, gifts made within three years of death, annuities and certain retirement plans, retained life interests, and trusts are not subject to probate administration but are subject to inheritance tax.
For example, joint tenancy property, gifts made within three years of death, annuities and certain retirement plans, retained life interests, and trusts are not subject to probate administration but are subject to inheritance tax.
Spouses, children, and parents of a deceased person are exempt from Iowa inheritance tax, while other inheritors might have to pay. Update: In 2021, Iowa decided to repeal its inheritance tax by the year 2025. In the meantime, there is a phase-out period before the tax completely disappears.
Iowa is planning to completely repeal the inheritance tax by 2025. Iowa does not have a gift tax. The federal gift tax has a $15,000 per year exemption for each gift recipient in 2021 and $16,000 in 2022.

iowa inheritance tax rate schedule 2022