INTRODUCTION
Back in the days of the feudal system, estate meant status. The king owned the land and the tenants were his subjects. These private land-holders agreed to certain terms. So a person's estate or status was judged on the conditions of such person's tenancy.

Today, estate, in its broadest sense, means everything that goes into a person's total wealth - both land and personal property.

When a person dies, Iowa tax law and, in some cases the federal government requires an accounting of such person's wealth for at least tax purposes. This procedure, regardless of whether a person dies with or without a will, is called probate and must usually occur in the District Court of the county where the deceased resided.

If such person dies as an out-of-state resident, a probate proceeding may be started in any Iowa county in which the deceased held property. Your lawyer will be glad to answer any questions you have in regard to this and hundreds of other questions that may come to mind.

If a person dies leaving a will, it undoubtedly will name an executor. If the executor named in the will is predeceased or declines to serve, the court will appoint an executor. If a person dies leaving no will, the court, upon the petition of an authorized person, will name an administrator. In either case, it is the duty of the executor (or administrator) to represent the deceased by handling and disposing of the property either by sale or distribution and to pay all taxes of the deceased and of the deceased's estate.

We feel it is good business for a lawyer to assist either the executor or administrator since such executor or administrator has many duties and responsibilities required by law. A person may refuse to serve as an executor; but once having accepted this responsibility, he or she cannot quit except with the Court's permission, and even then that will not relieve that person of some of the responsibilities assumed by accepting in the first place.

The executor or administrator may, while acting in good faith, incur personal liability through a misunderstanding of the law or the tax law. This is another reason why it is advisable to engage the services of a lawyer who through training and experience can prevent honest but costly mistakes.

This pamphlet is written to inform executors and administrators of their duties and responsibilities. It is the sincere hope of The Iowa State Bar Association that this booklet will prove helpful.

EXECUTOR OR ADMINISTRATOR
In the administration of an estate, the executor or administrator is directly responsible for the proper settlement of the estate. This includes, generally speaking, responsibility for the collection and preservation of assets, payment of proper claims and debts, proper accounting, payment of taxes and distribution.

FUNCTIONS OF PROBATE
Purposes of probate of an estate are:
1) To make an accounting of the assets and liabilities.
2) To protect the property of the estate.
3) To pay debts and clear all tax matters involving the decedent (deceased person)including income, estate and inheritance taxes.
4) To determine who is entitled to share in the estate and to distribute the estate to the proper parties.

AUTHORITY
The Court must empower you to act as an executor or an administrator. In fact, your authority to act commences with the issuance of letters of appointment. The Court will issue such additional copies upon request as are necessary. Remember each time you transact estate business, you should take a copy of your letters of appointment with you. However, if you take possession of any of decedent's property, you may have the responsibility of an executor for certain tax purposes even if you are not so appointed by any Court.

TITLE
When a person dies, title to all of his or her real estate (land) and personal property (all other) passes to those persons to whom it is given in the will.

If there is no will, then the property is distributed to those person to whom it descends by law. If this is the case, we suggest that you have your lawyer explain to you the "family tree" and how property is handed down.

Certain property does not pass by virtue of the will or by virtue of inheritance and passes outside of the jurisdiction of the executor or administrator, as the case may be, and this property is called non-probate property. While the executor or administrator may not have possession of this property, ordinarily he or she is subject to the requirement to collect the taxes which result from the passing of this property. All of the other property where there is a will, or if the person dies without one, is subject to the possession of the executor or administrator and to the control of the Court for the purpose of administration, sale, or other disposition.

If there is a real estate subject to an outstanding lease you must take control of the real estate and collect the income. Other situations may exist which may require you to take possession of the real estate. You must also take charge of all personal property coming into your hands and collect the income from it. Such income must be reported to the appropriate tax authority. Exempt real estate and exempt personal property coming into your hands shall be delivered to the individual entitled to it. Your lawyer will advise you as to what is exempt.

DUTIES
As executor or administrator great responsibility is placed on your shoulders. You should take possession of all the probate property of the estate and distribute it properly. You must investigate and determine the amount of non-probate property and report it for taxation purposes. You are an officer of the Court. You must take an oath, swearing that you will uphold the law and fulfill the duties of your office. You are the impartial representative of all parties with an interest in the estate, including persons with claims against the estate, and you should be completely fair and open in dealing with them and should not deal with yourself except by specific Court order after your lawyer has given the appropriate notices.

Here is a summary of your principal duties:

1) To take possession and protect the real estate and personal property of the deceased except in those cases and in respect to such property as the law otherwise provides for and as to which your lawyer will advise you.
2) To locate all the decedent's income tax return copies still in existence and the information needed to file a final income tax return for the decedent.
3) To keep real estate and personal property insured.
4) To receive the rents and payments due and to collect interest, dividends, and other income.
5) To make proper demand and collect all of the debts, claims, and notes due to the deceased.
6) To keep an accurate record of all the receipts and the expenses.
7) To assist in determining the names, ages, social security numbers, addresses, and degree of relationship of all possible heirs or distributees.
8) To litigate or settle any pending lawsuit in which the deceased had an interest.
9) To prosecute any claims arising as a result of the wrongful death of the person whose estate is being administered.
10) To keep estate property invested until distribution is made.
11) To obey and carry out all the orders of the probate Court.
12) To determine and pay gift taxes, inheritance taxes, estate taxes, and all other taxes, including the income tax at the state and federal level for the decedent.
13) To give notice to those persons entitled thereto at appropriate times in the manner outlined to you by your lawyer.
14) To pay the valid claims of creditors and, if necessary, to sell the estate property to do so.
15) To make such elections in a timely fashion with reference to state and federal taxes as are required by the duties of the office and in this your lawyer will be of invaluable service.
16) To distribute the remaining assets to the proper heirs or to the beneficiaries named in the will in the manner outlined to you by your lawyer.

If you fail to perform your duties, you can be held liable for the loss you cause the estate and the court can order your removal. In addition, there are severe consequences for an executor or administrator who fails to perform required tax duties or who fails to file timely reports.

BOND
The court may require you to be bonded. This is because an administrator or executor often deals with substantial property and funds.

The bond, set by the Court, is based on the estimated value of the estate and the income of the estate. Although some wills may exempt the executor from posting bond, the Court may nevertheless require one.

The bond, subject to Court approval, may be signed by persons who own property in the county or it may be purchased from a bonding company.

LAWYER
Although you are primarily responsible for the administration of the estate, the law contemplates the retaining of a lawyer. He or she will be your closest advisor and will not only offer advice, but will help in the preparation of documents and will guide you in complying with the probate and tax laws.

Your lawyer will represent the estate in Court proceedings. It is your lawyer's duty to see that the estate proceeds as quickly as the law allows. He or she will advise you of the notices which you are required to give.

You must be prompt in obtaining information and reports that the lawyer requests and you should cooperate closely with him or her in the preparation of all papers, particularly the inventory. Failure to do this will cause delay in completion of administration and might cause the Court to remove you as executor or administrator. Consult regularly with your lawyer and follow the advice closely. It will save a great deal of time and avoid misunderstanding.

INVENTORY
After all the property is collected or accounted for, the law requires that a written true general inventory be made and filed. This must be done within 90 days after you are authorized by the Court to act.
You must list the following:
1) Name, age, social security number, and last residence of the decedent.
2) Date of death of the decedent.
3) Whether decedent died testate (with a will) or intestate (without a will).
4) Name, social security number and post office address of the administrator or executor.
5) Name, age, and post office address of the surviving spouse, if any, including the spouse's social security number.
6) If testate, name, age, relationship, social security number, and post office address of each beneficiary under the will.
7) If testate, the name, age, and address of each child, if any, born to or adopted by the decedent after the execution of the will.
8) If intestate, name, age, relationship, social security number and post office address of each heir.
9) In any event, name, age, relationship, social security number and post office address of each recipient of non-probate property.
10) Inventory of all the real estate of the decedent in the State of Iowa, giving value and accurate description of each tract.
11) Any real property located outside of the State of Iowa not otherwise reported.
12) Personal property regarded as exempt from execution.
13) All other personal property.
14) All property (whether subject to probate or not) not otherwise listed which is subject to the Iowa inheritance tax. (This might include, for example, gifts made by the deceased within three years of death or transfers in which the decedent retained a life estate or other interest which took effect in possession or enjoyment at death.)
15) A statement as to whether or not there is any property not inventoried which might be reported for federal estate tax purposes. (This might include, for example, insurance payable to a named beneficiary.)

Ordinarily, the lawyer makes up the inventory form for the court, but it is your responsibility as the executor or administrator to make an accurate accounting of the property and to see that all items are properly reported.

FACTS TO OBTAIN AS TO ITEMS IN THE INVENTORY
A. Real Property . All the real estate in which the deceased person had any interest whatsoever should be listed; the city, village, or town, the street address; legal description; amount of land; improvements; if rental property, give rental and present tenants; if mortg aged, list to whom, amount, and which date payments are due; taxes, when last paid or what is presently due; abstract or title insurance; whether abstract is up to date; insurance on the property, including any kind (such as fire, liability, etc.), amount, company, policy number, local agent, date of expiration, when purchased, if you can determine, the cost and date of purchase and of each improvement made upon such property. If it is depreciable, also the depreciation taken.
B. Personal Property . This will include all property, other than real estate, and since it covers such a wide variety of belongings, numerous categories will be suggested. You should make the list for the attorney, considering these items:

1) Automobiles and trucks . Include make and model, year, title, serial or motor number, license number, insurance, liens, cost.
2) Household furniture . Major pieces usually are described room by room, with pieces of greater value such as refrigerator, stove, laundry equipment and antiques listed separately; mortgages or other liens against this kind of property.
3) Farm machinery. List each major item separately with year and model number, mortgages or other liens.
4) Farm livestock. List each animal or group of animals or fowl separately, giving the kind and age or other identifying characteristics, and mortgages or other liens.
5) Business inventory. The list of stock in trade, fixtures, tools and equipment of a business in which the deceased was owner or part-owner should be made separately. It is also necessary to list the inventory value of the property at the time of the decease.
6) Personal insurance . List each policy, such as life, accident and health, hospitalization, etc., separately, including the company, its address, serial number, amount, beneficiary, and whether most recent premium was paid, and annuities or retirement benefits. (This list w ill not include policies on real estate or machinery or equipment.)
7) Cash assets. If in bank or savings and loan company, list name of account, checking or savings, name of the bank and address, and amount of the deposit. List the exact amount of cash in the possession of the deceased or in his or her safety deposit box or in his or her billfold. Joint accounts should include the name and address of each joint owner and his or her relationship to the deceased.
8) Promissory notes . Include exact payees, name and address of the maker and endorser, principal amount, date due, interest rate, present balance due, and dates of interest. Also list whether note is secured by mortgage and describe the mortgage, if any.
9) Other amounts due deceased . Accounts and other obligations owing to the deceased person.
10) Stock and bonds . List should include name of issuing company or association, serial number, type of issue, registered owner, interest rate, date on the bond, date last dividend was declared, principal amount or par value of each bond or share of stock. Jointly-owned s tocks or bonds should be listed with the name of the owners other than the decedent.

If you have any questions about the listing or ownership of property make notes concerning the property and notify your lawyer. This will help you make an accurate inventory. If the deceased is survived by a spouse some of the items enumerated in Paragr aphs 1-5 above may belong to such surviving spouse as exempt property and therefore may not be subject to the administration proceedings except to be set off and delivered to the spouse and to be properly reported in all respects for tax purposes. You should discuss this matter with your lawyer before preparation of the inventory.

GIFTS
Gifts or other transfers of property made by the deceased could involve tax problems. You should determine the date the gift was made, if and when it was reported, and whether or not any tax was paid and to whom the gift was made. These matters should be discussed with your lawyer.

CLAIMS
The executor or administrator must give a notice to creditors to file claims, which notice is printed in a local newspaper once on each of two successive weeks. The form of the notice is prescribed by law and the publication should be arranged by the lawyer. The same notice must be sent by ordinary mail to each known or reasonably ascertainable creditor.

This notice will announce to creditors that they must file their claims within four months after the date of the second publication of the notice or one month after actual notice whichever is later. If a claim is complicated, the Court may, upon applicat ion, grant additional time to the claimant for filing his or her claim. If the creditor fails to file a claim in time, he or she loses the legal right to collect. You should not say or do anything which might lead a creditor to believe that you intend to pay without the filing of a claim.

You should direct any party wishing to file a claim to your lawyer to his or her own lawyer.

After the final date for filing claims (four months from the date of the second publication of the notice to creditors or one month from actual notice) you should proceed to pay the debts and charges allowed against the estate in accordance with the provisions of the law, but not until your lawyer specifically approves their payment . Some claims, such as claims for funeral expenses and costs of last sickness, may be paid before four months have passed if your lawyer approves.

RECORDS
A. Income and Expense of the Estate . You must keep an accurate record of all money received. It is most helpful to have an account book listing each of these items showing the date, the person or company from whom received or to whom paid, the purpose and the exact amount. This record sh ould be separate from, and in addition to, the checking account record described in "Bank Account" which follows.
B. Time and Expenses of Executor or Administrator . By law you are entitled to compensation for the amount of time spent taking care of the estate and for your actual expenses such as travel, so you should keep an accurate record of these items including the date, amount of time spent, travel, mileage, a nd other items of expense.

EXECUTOR OR ADMINISTRATOR FEES
The law recognizes that the executor or administrator has a responsible position in the probate of the estate by providing a schedule of fees which the Court can allow, based on the size of the estate and time spent caring for it. This is a legitimate expense of probate, and it is charged in addition to mileage, phone calls, money advanced and other items of expense. Ask your attorney for information regarding the schedule of fees and for help in preparing your expense record and claim for services.

ATTORNEY'S FEES
Since your lawyer also has a great responsibility in handling the matters in an estate, the law allows him or her reasonable compensation for these services. Attorney fees in a probate proceeding should be approved and allowed by the Court.

However, lawyer and judge are guided by the schedule of fees set out by the Probate Code. In adopting this probate fee schedule, the legislature has taken into consideration the time involved, the large volume of documents which a lawyer must prepare, the usual number of conferences with the administrator or executor, heirs, creditors, and tax authorities. The lawyer's fees must also cover time used for Court appearances and later for determining that a proper transfer and record of title is made for the heirs who receive the property. The fee is usually based on a percentage of the value of the estate.

Probate is governed mainly by written laws which require much detailed work; a substantial amount of time and overhead expense are involved. As the size of the estate increases, the tax problems and the responsibilities also become greater. Whether the estate is large or small, the lawyer must exercise great care and assume the responsibility of insuring that the proceeding is properly handled.

The Court uses three basic factors to guide it in setting attorneys' fees under the statute - time consumed, skill required, and the results obtained.

BANK ACCOUNT
The lawyer for the estate will usually advise you, as executor or administrator, to open a checking account for the estate at a local bank. All money you receive as executor or administrator should be placed in this account. All cancelled checks should be kept since they must eventually be filed with the Court. Do not put your personal money in this account and never put estate money into your personal account. Never "short cut" the estate checking accounting by placing deposits directly into a passbook or other savings account.

SALE OF PROPERTY
A. Real Estate . Legally, you cannot sell real estate without a Court order approving the sale unless the will permits it. Never make any promises to sell until after you discuss it fully with your lawyer.
B. Personal Property . Perishable items of personal property need to be sold at once and usually can be sold without order of Court, but you should always discuss sale of these items with your lawyer before you act.

Other personal property of a non-perishable nature may be sold without order of Court if the will so provides; but, in the event there is no such provision in the will or no will at all, such other personal property except that with a readily ascertainable market value can only be sold after obtaining orders from the Court and on such terms and conditions and after such notices and hearings as the Court may fix.

You are not permitted to purchase the property yourself or sell it to your lawyer without the specific approval of the Court and after notice to all interested parties.

TIMETABLE
It is difficult to predict with certainty the amount of time it will take to settle any estate because each one is somewhat different.

According to state law, the executor or administrator must file the final account and make final settlement and distribution of the estate within three years after the second publication of notice to creditors, unless otherwise ordered by the Court. Each estate has certain reporting times for income and other taxes. These timetables should be ascertained from your lawyer at an early date so that planning can be made for the best tax consequences for the estate.

Ordinarily, the administration of the estate will not require the full three-year period; but under certain special circumstances, it might. It cannot be completed until after the expiration of four months, but ordinarily an estate can be closed well wit hin a year of its opening. Your lawyer will be able to advise you in regard to the time required and can explain why various tax options and other matters may make it advisable to close the estate at the earliest possible time, or under certain circumstan ces, at a later date. In any event if the estate is subject to federal estate taxes, allowance must be made for the time taken by the federal audit people to determine the exact federal estate tax. You will receive a release of liability from such tax be fore the closing of the estate.

SETTLEMENT
A. Expenses of Administration . These include, among other things, Court costs, your own fees and expenses, your attorney's fees and expenses, and other items of expense necessarily incurred in the administration of the estate, many of which are specifically listed in the Probate Code . These expenses must be paid before any payment on claims or debts and before the payment of claims for last sickness or funeral expense (at least enough money should be on hand for the payment of these costs before paying funeral or other expenses.)

B. Claims. As a general rule, do not pay any debts or claims until your lawyer approves their payment.

Occasionally the estate can settle certain claims to take advantage of discounts for prompt payment. Some funeral homes provide for such discounts and certain utilities do also. This might be done if the funds are available. Again, see your lawyer.

C. Distribution. After payment of costs of administration and claims, and upon obtaining the necessary tax clearances, distribution of the assets remaining can be made in accordance with the terms of the will or as required by law if there is no will. Proper receipts should be obtained from all persons receiving property from the estate.

D. Discharge . After you have paid the claims and debts, the costs of administration, obtained your tax clearances, distributed the rest of the property, and when proper receipts are on file, you will make your final report to the Court. After a hearing, the Court wi ll sign an order discharging you as an executor or administrator and, if the Court required a bond, your bond will be released. This order, when entered by the Court, will end your responsibilities in the estate proceeding.

E. Discharge without Court order . In the event you have obtained all of the tax clearances and paid all of the claims, debts, and costs, as above stated, then in that event if your attorney is able to obtain proper waivers from each interested party and all parties are adult, it is poss ible to obtain your discharge without a Court order. Your attorney will explain this to you.

F. Notice of Termination of Fiduciary Relationship . At such time as you have been finally discharged from the estate and the responsibilities of executor or administrator, you should file with the Internal Revenue Service a Notice of Termination of your fiduciary relationship. This should be taken care of by your attorney.

The small amount of money involved often makes it economically impractical for a person to hire a lawyer to represent him or her in Small Claims Court. Such a person usually has to choose between giving up or trying to represent himself or herself. This manual is intended to answer some basic questions for the person who chooses to "go it alone". It does not answer all the questions that might come up during the lawsuit. If you decide to use this manual, you should ask questions whenever you are in doubt. The personnel at the courthouse and Sheriff's Department are there to serve you and will be glad to answer questions about various procedural matters. However, they can not act as legal counsel to you.

This manual has been prepared under the direction of a special committee of the Young Lawyer's Division of The Iowa State Bar Association.

The Young Lawyers Division expresses its appreciation to the committee members who prepared the manual and The Iowa State Bar Association for its assistance in printing and distributing this manual.

DEFINITIONS AFFIDAVIT:
A written statement of facts. The person making this statement must swear as to its truth before a Notary Public.

APPEAL:
The action or right of a party to resort to a higher Court for review of a lower Court's decision.

APPEARANCE AND ANSWER:
The defendant's acknowledgment, in writing, that he or she is aware of the action against him or her and his or her response to the claim being made.

CLERK:
An officer who has charge of the Court's records; usually the Clerk of the District Court in each county or an assistant designated by the Clerk to handle Small Claims matters.

COURT COSTS:
Cost of administering Small Claims matters including filing fees, service fees, etc.

COURT REPORTER:
Someone who makes a complete record of everything said at the trial.

DEFAULT:
The failure of any party to appear by the required date.

DEFENDANT:
The person or party against whom a claim is made.

FORCIBLE ENTRY AND DETAINER ACTION:
A claim asking for the removal of a person or party from property such as eviction of a tenant for nonpayment of rent or other failures of the tenant to honor the terms of a lease.

JUDGE OR MAGISTRATE:
The Judicial Officer who hears and renders decisions in Small Claims cases.

JUDGMENT:
The final decision of the Judge or Magistrate which is officially entered in the Court records.

JUDGMENT DEBTOR:
The person or party against whom a judgment has been rendered which has not been paid.

ORIGINAL NOTICE:
The plaintiff's notice to the defendant that he or she has filed suit and of what he or she is suing for.

PLAINTIFF:
The person or party who makes or files a claim.

TRIAL:
The time and place when the Judge hears the evidence presented with respect to a Small Claims lawsuit. The trial is sometimes called a hearing and generally means the same thing.

WHAT IS THE SMALL CLAIMS COURT?
Small Claims Court is a division of the District Court where you can sue to collect a debt, for breach of contract, to recover for damages suffered in an accident, or almost any civil claim against another party so long as the amount you claim is owed to you is less than $4,000 without having to go through extensive and technical proceedings. You, the plaintiff or defendant, have the choice of either representing yourself for hiring an attorney to represent you. The purpose of this Manual is to assist the party who elects to represent himself or herself.

Please read these instructions very carefully before proceeding and refer to them frequently throughout the process of your Small Claims case. The Clerk, Magistrate and Sheriff are prohibited by law from answering questions of legal substance, e.g. , interpreting the meaning of a law or advising you on whether to pursue a claim. If your questions cannot be satisfactorily answered by this pamphlet, you should contact the attorney of your choice.

HOW DO I BEGIN A SMALL CLAIMS ACTION?
The Clerk of the District Court will supply any individual, partnership, association, corporation, or entity with all of the legal forms required to complete the Small Claims procedure. The Clerk may also assist any party in completing these legal forms. A small claims case is begun by the plaintiff filing an Original Notice form with the Clerk of the District Court. The Clerk will supply the correct Original Notice form either for an action for money judgment or for an action for forcible entry and detainer. To fill out this Original Notice, the following steps should be taken:

A. On the top of the original Notice form, you must fill in the name of the county in which the suit is being filed. The action must be filed in the county where the defendant lives or where the event occurred.

B. Fill in the name of the plaintiff and the plaintiff's specific address where indicated. If the plaintiff is a business and operates under a business name, the name of the owner and operator must be stated along with the name of the business.
(EXAMPLE: Joe Jones, Joe's Auto Repair.)

If the plaintiff is a corporation or a partnership, this fact must be stated after the name, (EXAMPLES: Smith's Garage, Inc. or Smith's Garage, a partnership).

C. Fill in the defendant's full name and his or her current specific address where indicated. If there is more than one defendant, you must include the first and last name of each defendant and their current address. If the defendant is a business, corporation or partnership, it must be stated as in "B" above. If the defendant is under age eighteen (18), you should consider naming the parents as additional defendants.

D. Fill in what you are asking from the defendant. If it is a sum of money, state the amount and the reason the defendant owes you the money. If you are demanding that the defendant vacate real estate that you own (forcible entry and detainer), state briefly the reason for the demand.

E. Sign the Original Notice at the bottom of the page and deliver it to the Clerk along with two copies of the completed Original Notice for each defendant named.

F. You must pay a filing fee plus advanced costs, if any, as determined by the Clerk. These fees must be paid to the Clerk at the time of delivering the Original Notice to the Clerk.

G. Upon receipt of the Original Notice, the Clerk will assign a Small Claims Number to your lawsuit and enter the date the action was filed and the time within which the defendant must make his appearance on each copy of the Original Notice.

On the completion of these steps, your Small Claims action will have been filed and commenced.

HOW IS THE DEFENDANT INFORMED OF THE CLAIM?
After the Original Notice has been filed, the defendant must be informed of the lawsuit before a trial is held. The manner in which the defendant is notified may vary depending upon such things as the type of relief sought by the plaintiff, the location of the defendant's residence, whether defendant's residence is known, etc.

If the plaintiff is seeking to recover money, then one of the following procedures will be taken:

A. The Clerk will mail a copy of the Original Notice and an Answer form to each defendant by certified mail, return receipt requested. The defendant will be required to appear within twenty (20) days following the date service is made.

B. As an alternative to mailing the Original Notice and Answer form, the plaintiff may direct the Clerk to deliver the Original Notice and an Answer form to the Sheriff for personal service on the defendant. If this method of serving the defendant is chosen, it is the plaintiff's responsibility to pay the Sheriff's service charges. Service fees for personal service are specified by law and must be paid on or before the trial date. The defendant will be required to appear within twenty (20) days following the date service is made.

C. If the defendant does not live in the State of Iowa but has made a contract with a resident of Iowa to be performed in whole or in part by either party in Iowa, or if the defendant committed a wrongful act in whole or in part in Iowa against a resident of Iowa and the lawsuit is over the contact or wrongful act involved, service of the Original Notice may be made by filing duplicate copies of the Original Notice with the Secretary of State of the State of Iowa together with a fee of Ten Dollars ($10.00). The Clerk will collect the fees and costs and will file copies of the Original Notice with the Secretary of State for you. The Clerk will then mail a copy of the Original Notice and an Answer form to each defendant by registered or certified mail within ten (10) days after the filing with the Secretary of State. The date for the defendant's appearance under this method of service will be sixty (60) days from the date of the filing of the Original Notice with the Secretary of State.

If you are filing an action for forcible entry and detainer:

Defendant must be served personally as set forth at "B" above. The Clerk will set a date, not for defendant's appearance, but for a hearing which will be at least five (5) days after personal service is had upon defendant. You (the plaintiff) must attend this hearing.

In any case, the plaintiff should be prepared to produce proof of service at the trial or hearing. This would be the return receipt if service is had by certified mail, (A above), by a return of service signed by the Sheriff if personal service is had (B above), or by copy of the Original Notice with a Secretary of State's certificate of filing and an affidavit of the plaintiff or his attorney stating compliance with the requirements of "C" above (note that proof of service under "C" does not include a return receipt).

I'VE BEEN SUED -- WHAT DO I DO?
You have just received an Original Notice and an Appearance and Answer form indicating that you have been sued and are now a defendant in a Small Claims action. What should you do? Immediately make note the date by which you must appear if you wish to contest the claim; you must enter a timely appearance to avoid being in default. The Original Notice will advise you as to when and where you must appear. The date on the Original Notice is not the trial date, unless it is an action for forcible entry and deta iner of real property in which case the date is for a hearing at which your attendance is required. In all other cases, when you file an Appearance and Answer on or before the appearance date, the Clerk will then assign a date for the trial.

You should read the Original Notice very carefully and try to recollect all of the facts surrounding the claims stated in the Original Notice. On the Appearance and Answer form, you may admit or deny any or all of the claims made, but you must deny all of the plaintiff's claims which you intend to disagree with at trial. The Appearance and Answer form must be delivered to the Clerk's office, whether in person or by mail, on or before the appearance date contained in the Original Notice. If you are denying t he claim, you should immediately begin to assemble the facts and documents which support your position.

If you, as the defendant, believe that the plaintiff owes you money, then you may wish to make a claim against that plaintiff in this same suit. Your claim as defendant will be called a "counterclaim" and the Clerk will provide you with the necessary form to assert this counterclaim. The plaintiff will then be advised by the Clerk of this claim. In this manner, both the claim and counterclaim can be tried at the same time.

After considering the plaintiff's claim, you may determine that someone else who is not a party to the action owes all or a part of the amount being claimed by the plaintiff. In that event, you may file what is known as a "cross claim" to bring in the additional party and the Clerk should be advised of your desire to do this.

A counterclaim or cross claim in excess of $4,000 must be filed in the form of a regular pleading. It will then either be tried separately or the entire matter will be tried by regular procedure, at the Court's discretion.

HOW WILL I KNOW WHEN I'M TO BE IN COURT AND WHAT SHOULD I DO TO PREPARE?
If the defendant or person against whom a claim is made enters an Appearance, the Clerk of Court will mail to each party written notice containing the time, date and location of the trial. This is the date when you must be personally present in Court. If you are the plaintiff and do not show up at the time and place indicated, the Court will dismiss your claim and if the defendant(s) does show up you will not be permitted to sue this same party again on this claim and will be assessed the Court costs. If the party you sued made a claim against you in the same lawsuit, and you do not appear, the other party will most probably be awarded a judgment for the relief requested. Therefore, you should not file a Small Claims lawsuit unless you intend to attend the t rial. There is one exception. If you are the plaintiff and are suing on an account or written document for the payment of money, by preparing and filing a Verification and Affidavit form available in the Clerk's office, you will not be required to appear p ersonally at the trial. However, if the party you have sued does appear, there is a chance your claim will be denied by the Court. Therefore, it is always the best practice to appear in person at the trial.

If you are the defendant and fail to attend the trial, judgment will be entered against you in favor of the plaintiff for the relief requested and court costs.

The trial date is set not less than five (5) days and no more than twenty (20) days after the defendant enters his Appearance, unless the court finds reason to order otherwise. If for a legitimate reason, you have a conflict with the trial date which cannot be resolved, you should contact the Clerk's office immediately and request another trial date or time.

To prepare for the trial, you must gather all the evidence you wish to present to the Judge to prove your claim or defense. Evidence is generally the testimony of witnesses under oath at the trial and any written materials relevant to the claim or defense of the claim. Notify any persons you want to testify on your behalf of the trial date as soon as possible. It is your responsibility to see that the witnesses appear at the trial. If the witness will not volunteer to come, you can obtain a subpoena from the Clerk's office. The subpoena must be filled out and given to the Sheriff's office for service on the witness. The witness must then come to the trial or face being held in contempt of court. Witnesses may be anyone having knowledge of the facts including yourself, members of your family and your spouse.

1. In addition to witnesses, the Judge will want to see any written documents which tend to support your position. If the dispute is over a written contract of any kind, you should bring the contract with you and show it to the Judge. Also, if there are claims for medical expenses or property damage, the bills showing these expenses should be assembled to be shown to the Judge. If the suit is for balance owing on an account, you should bring your records of the account, receipts, and any other agreements or correspondence pertaining to the account to the trial. If the claim is from damages in an automobile collision, you should bring pictures of the damaged property and the scene of the accident.

Remember, the Judge's knowledge about the case depends on the evidence you submit to him or her, and your say-so is less convincing than documentary evidence or the testimony of a witness who has no stake in the outcome of the case. Always try to present t he best, most direct evidence that you can. A well informed judge will be more likely to give a proper decision.

WHAT HAPPENS AND WHAT DO I DO WHEN I GET TO COURT?
The trial is the time when you get the opportunity to either prove your claim against another party or defend yourself against a claim brought by someone else.

It is important to be on time for the trial. If you are unfamiliar with the courthouse, you may want to arrive early or make a separate trip to find out where your courtroom is. Your case will be assigned to a particular Judge who will be present and conduct the trial. There may be other trials assigned for the same time. The Judge will decide in what order to hear the trials. You must wait your turn.

When your case is called, stand and tell the Judge you are present. The Judge should be addressed as either "Judge" or "Your Honor." Even though the trial will generally be conducted informally, respect for the Court must be shown at all time.

The Judge will usually ask each party and any witnesses to be sworn. Once this is done, the Judge will generally seek to find out what the dispute is about and will ask each party his or her position on the matter. The Judge will also hear what any of the witnesses have to say and will consider any written materials the parties have to support their respective positions.

If you want the testimony at the trial to be recorded, you must ask the Judge for a Court Reporter or to have the proceedings taped. This should not be left until the last minute. Any costs of having the testimony reported or taped will be charged to the party requesting it. In most cases, there is no need to have the testimony preserved in this manner. Instead, the Judge will normally take adequate notes concerning testimony.

The Judge will normally do all the questioning if neither party is represented by an attorney. If an attorney is present for one or both of the parties, then the attorneys may also ask questions. After the Judge has heard all the evidence presented by the parties, he or she will generally decide the case while the parties are still present. However, in some cases, the Judge may "take the matter under consideration" which means he will rule at a later time. The parties will be notified of the ruling by mail.

If the plaintiff wins and is entitled to a sum of money, or the defendant has admitted the claim, the Judge may order the defendant to pay this money in installments if the defendant indicates he or she is unable to pay the entire sum at once. If the defendant wants to pay the claim in installment payments, the defendant should tell the Judge at the trial.

WHAT DO I DO IF I LOSE?
If you are not satisfied with the decision and wish to pursue it further, you may appeal by (a) telling the Judge at the conclusion of the trial that you are appealing, or (b) filing a written Notice of Appeal with the Clerk of District Court within twenty (20) days after the decision or judgment is given.

If you wish to appeal, you must pay an appeal fee to the Clerk of District Court within twenty (20) days after the judgment or decision is reached. If this fee is not paid on time, you lose your right to appeal.

If you are the losing party, taking an appeal does not prevent the other party from trying to collect on any judgment entered in it's favor unless you file an Appeal Bond with the Clerk of District Court.

Within twenty (20) days after the appeal fee is paid, you may file with the Clerk of District Court a written transcript of the trial if the evidence was taken down by a Court Reporter. The Court Reporter, upon request, will prepare this transcript at your expense. If the transcript is prepared from a tape recording or similar device, you must notify the Judge to preserve the tape and file it with the Clerk of District Court. If the trial was not taken down by a Reporter or electronically recorded, the only record of the trial will be the written notes made by the Judge during the trial. Those notes are referred to as the "Minutes of Testimony" and you must make sure these "Minutes" are placed in the Court file in District Court. It is the responsibility of the appealing party to see that this is done.

The only evidence considered on appeal is the record of the original hearing, unless the reviewing District Court Judge feels that the record is inadequate in which event the District Court Judge will request and consider new evidence on the inadequately covered issues. The District Court Judge can uphold, change, or reverse the Small Claims Judge's decision.

IF I WIN, HOW DO I GET MY MONEY?
If you have made a claim for money and the Judge rules in your favor, or if you obtain a default judgment, then a judgment for a specific amount plus Court costs and interest will be entered. However, this does not automatically get you the money. If the other party does not voluntarily pay the amount of the judgment to you, you must then take steps to enforce or collect on the judgment. If the defendant has been ordered to make installment payments and has failed to do so or has stopped making payments, you must file an Affidavit of Default showing the unpaid balance. Until this form is filed with the Clerk's office, you will not be permitted to take steps (c), (d) or (e) below. However, if you are not involved with installment payments or have filed the Af fidavit of Default, then you should pursue the following steps:

A. Call or contact the party against whom the judgment is entered and discuss voluntary payment. If the suitable arrangement for payment is not agreed on, then consider the following steps.

B. Wait and do nothing. All judgments attach as a lien against any real estate located in the county where the judgment is obtained, including a home, owned by the person owing the judgment. The lien is good for ten (10) years and if the property is sold within that time, normally the lien must be satisfied which means you will be paid your money.

C. If you would rather not wait, request the Clerk's office to issue an "execution" which then permits you to ask the Sheriff to do several things:

1. To make a personal demand on the judgment debtor for payment of the judgment;

2. To levy upon certain property owned by the judgment debtor; or

3. Both of the above.

The cost of the execution and any Sheriff's fees will have to be paid by you initially but will be added to the Court costs to be collected from the judgment debtor. After the execution is issued, in order to have the Sheriff carry out your wishes, you must supply the information to the Sheriff as to what property the Sheriff should seize to satisfy the judgment by filling out a "Dictation to Sheriff." The easiest kinds of property to execute on are personal bank accounts and wages of the person owing the judgment. This is done by garnishment. If you know the name and address of the judgment debtor's bank and his or her employer, request in the Dictation to Sheriff that any bank accounts in this bank or wages being held by this employer be garnished. This no rmally means that if any such funds exist, you will get them. You may garnish bank accounts and wages as many times as it takes to satisfy your judgment. However, both federal and State laws limit the amount of wages which can be garnished, depending on th e judgment debtor's income. The Clerk or Sheriff should be able to help you determine the amount that can be reached this way once you know the judgment debtor's income.

D. If garnishment of personal bank accounts or wages is unsatisfactory, you can direct the Sheriff by the "Dictation" to attach and sell any non-exempt or unencumbered (free of existing debt) property located in the county belonging to the judgment debtor. However, because of the problems that can arise in attempting such a procedure, it may be best to consult with an attorney before proceeding with this step.

E. If you do not know what assets (bank accounts, wages, property located in the county) the person owing on the judgment (judgment debtor) has, you can require the debtor to tell you under oath. This procedure is known as a "Judgment Debtor Examination." To do this, you must first obtain an execution from the Clerk's office and then fill out the Dictation to Sheriff form directing the Sheriff to make a demand on the Judgment debtor for payment. IF THIS DEMAND IS RETURNED BY THE SHERIFF "unsatisfied", that is, the judgment is not paid, then you can ask the Clerk's office to notify the judgment debtor by written notice, that he or she must come to the Courthouse and answer questions under oath from you concerning his or her assets, including employment inform ation.

Obviously, if you have reason to believe any money judgment you might receive in Small Claims Court will not be collectable because of the other party's inability to pay any judgment, you probably should not even file your claim.

NO. As you may already be aware there are dozens of internet sites discussing tax sales. Many of those sites offer books for sale and other materials on how to reap a fortune investing in tax sales. There are also infomercials on T.V. discussing the get rich quick opportunities tax sales provide. These infomercials also provide how-to books and tapes. In addition, there are seminars throughout the country that offer books and tapes for sale on how to get rich quick in tax sales. Obviously, with all this publicity, it is no longer a secret!

Q: Have people made a good rate of return investing in Iowa tax sales?

YES. However, investing is not nearly as lucrative today as it was years ago. For a number of years in Iowa the interest rate that a tax sale certificate holder would receive was less than that charged by credit card companies. Many people decided, therefore, that it was less expensive to let their property be sold at tax sale than pay off their credit card bill. As a result there were a large number of properties available at tax sale and very few investors. At that time investors could purchase as much property at tax sale as they wanted. There were companies throughout the United States, many of whom we have represented, whose sole business was to travel around the country purchasing properties at tax sales. They were hoping to either receive a good rate of interest or occasionally get lucky and end up with a nice piece of property. After the Iowa law was modified to provide the certificate holder with penalty interest at the rate of two percent per month, several things changed. First, after several years property owners realized that it was better to pay their property taxes than their credit card bills. Consequently, there are much fewer properties offered at tax sale today in Iowa than there were five or six years ago. Second, when the rate of return was increased to two percent per month a huge influx of new investors from throughout the country came in to invest in Iowa.

Q: What is the status of the investment potential in the State of Iowa in tax certificates today?

Mediocre at best.

Today, due to the large number of investors and the smaller number of available properties, investing in tax sale certificates may not cover air fare from your home state. Let us give you an example of what 1998 was like in Iowa, although Black Hawk County is used as an example, the same was more or less true for the other 98 counties in the state. In 1998 in Black Hawk County there was only $604,000 worth of certificates that were actually sold. In 1990, there was over $4.4 million worth of certificates sold! In 1998 there were 91 bidders. In 1994 there were 58 bidders. In 1998 each bidder was only able to purchase an average of $6,000 per bidder. The more sophisticated and prudent bidders were only able to average $5,000. This was because they chose to avoid properties that were nearly destroyed, burned out, or that were possibly an environmental risk.

Lets analyze what the experienced investor might hope to realize as profit. Lets assume that the investor purchased $5,000 in certificates. In our experience we have discovered that half of the certificates ($2,500) redeem within the first month, for a return of $50 ($2,500 x 2%). Fifty percent of the remaining certificates are redeemed at some time within the first year, for a return of $150 ($1,250 x an average return of 12% = $150). The remaining $1,250 on average will redeem within two years, for an additional return of $300 ($1,250 x an average return of 24% = $300). The total return on the $5,000 is $500 over that two year period. Each county charges an admission fee for each purchaser. Black Hawk County charges $80. Lets further assume that the investor's round trip air fare is $500, and the hotel bill for two nights totals $90. Under this realistic scenario, the investor would have been better off investing in a money market fund or even a CD.

For those investors who have several other bidders at the sale, keep in mind that that fee to have those extra bidders assign their certificates to the investor is $100 per certificate. Also, keep in mind that each of these extra bidders will charge to bid on your behalf (usually between $50-$100 per day).

Some investors are hoping to get lucky and end up with the title to a good piece of property whose value exceeds the amount of taxes they have paid to provide them with additional profit. Others are hoping to win the lotto jackpot. Good luck to both, they will need it.

What duties and powers does a guardian have?
A guardian has the power and the duties granted in the order of appointment. Generally, without further court order the guardian may provide for the care, comfort, maintenance, training and education of the ward; take care of the ward's clothing, furniture, automobile and personal effects; ensure receipt by the ward of emergency medical services, professional care, counseling, treatment or other services needed; and assist the ward in developing self-reliance and independence. The guardian may, only with p rior Court Order, (1) permanently change the residence of the ward if the new residence is more restrictive of the ward's liberties than the current residence; (2) arrange for major elective surgery or non-emergency major medical procedure.

A guardian must file the following reports with the Court: (1) An initial report within 60 days of appointment; (2) An annual report within 30 days of anniversary date of appointment; final report within 30 days of the event causing termination.

When does a guardianship terminate?
A guardianship terminates at the time of the entry of a Court Order concluding that:

1. The ward, if a minor, has reached the age of 18.
2. The ward is deceased.
3. The ward is capable of managing his or her own person and that continuation of the guardianship is not in his or her best interest.
4. The guardianship is no longer necessary for any other reason.

What must a guardian do to terminate a guardianship?
When an event, such as those listed above, occurs, the guardian files with the Court a written report and application e