Iowa Inheritance Tax Ends In 2025
Iowa families received welcome news in recent years with the state’s decision to fully repeal its inheritance tax by January 1, 2025. This significant policy shift has been implemented gradually since 2021, offering decreasing tax obligations for inheritors each year until the complete repeal. For those working with our Des Moines, IA estate planning lawyer, the change presents a valuable opportunity to reassess and optimize estate plans before the final phase of the repeal takes effect.
Under the previous tax law, beneficiaries who were not immediate family members often faced steep inheritance taxes. This included nieces, nephews, in-laws, and friends—groups that typically had to pay between 5% and 15% of their inherited assets to the state. Iowa’s legislature recognized the strain this imposed on estate planning and wealth transfer, and thus began the phase-out process. By 2025, no Iowa beneficiary—regardless of relationship to the deceased—will owe inheritance tax to the state.
For families and individuals in Des Moines and across Iowa, the repeal brings more flexibility and fewer tax burdens in planning asset distribution. However, it does not eliminate the need for thoughtful estate planning. With federal estate tax laws still in place and many families owning property in multiple states, the guidance of a seasoned professional remains essential. Our knowledgeable Des Moines estate planning attorneys can help clients take full advantage of this opportunity by reviewing existing documents, evaluating potential tax implications, and making updates to trusts or wills that reflect the new tax landscape.
This change also underscores the importance of reviewing the broader estate plan—not just to avoid taxes, but to ensure a smooth transfer of assets, protection of beneficiaries, and fulfillment of long-term goals. The end of the inheritance tax means that strategies like living trusts and wills can now be structured with fewer financial constraints, potentially allowing for more generous and efficient transfers of wealth.
Trusted Legal Advocates To Help With Your Estate Planning
At the Law Group of Iowa, estate planning is a core focus of our practice. We help Iowans craft custom strategies that protect their families and reflect their values. As a mission-driven, full-service law firm rooted in fairness and justice, we work to make estate planning accessible and understandable. Our team’s diverse background and experience in community advocacy allow us to bring empathy and insight to every case. We’ve been rated as the best estate planning lawyers in Iowa because we handle each case with care and a commitment to our clients and their futures.
Our estate planning services include the creation and updating of wills, trusts, powers of attorney, and health care directives—services that can help protect your future and your family’s. Whether you’re looking for a will lawyer, a trust planner, or a probate counselor, we’ll guide you through each step with clarity and compassion. The repeal of Iowa’s inheritance tax offers a moment to reset your estate planning goals, and we’re here to help you seize that opportunity with confidence.
If you’re ready to rethink your estate strategy in light of the 2025 inheritance tax repeal, now is the time to act. Let our trusted Des Moines estate planning lawyers at Law Group of Iowa help you make the most of this tax-friendly change. Contact us today to schedule a personalized consultation and protect your legacy for the future.
