In the Matter of the Estate of Joseph C. Gantner III, Rachel Gantner
2017 Iowa Sup. LEXIS 40
| Iowa | 2017Background
- Decedent Joseph Gantner died leaving a will and three retirement accounts (two IRAs and one SEP IRA) naming his two daughters as co‑beneficiaries; estate executor filed inventory valuing the IRAs at ~$214,100.
- Surviving spouse Rachel sought a twelve‑month spousal support allowance under Iowa Code §633.374; the estate lacked sufficient probate assets absent the retirement accounts.
- Rachel argued the IRAs should be reachable under Iowa Code §633D.8 as “transfers at death of a security registered in beneficiary form” (TOD/POD securities).
- Daughters (beneficiaries) contended IRAs are nonprobate custodial retirement accounts governed by Iowa Code §633.357 and are not “securities” under chapter 633D.
- Probate court denied Rachel’s allowance, finding the IRAs were nonprobate assets passing outside the estate; Rachel appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether IRAs that designate nonspouse beneficiaries are "securities registered in beneficiary form" under Iowa Code ch. 633D such that §633D.8 allows reaching them for spousal allowance | Gantner (Rachel) argued the IRAs contain securities (mutual/index funds) and thus qualify as TOD securities under §633D.8, permitting the spousal allowance to attach | Daughters argued IRAs are custodial independent retirement accounts governed by §633.357, pass outside probate, and do not fit chapter 633D’s definition of a security or security account | The court held IRAs with nonspouse beneficiaries do not qualify as TOD securities under chapter 633D; §633.357 controls and IRAs are not available to satisfy the statutory spousal allowance |
Key Cases Cited
- In re Estate of Myers, 825 N.W.2d 1 (Iowa 2012) (POD/TOD assets excluded from elective share unless statute includes them)
- In re Estate of Tollefsrud, 275 N.W.2d 412 (Iowa 1979) (surviving spouse’s statutory allowance is a near‑absolute right)
- Veeder v. Veeder, 192 N.W. 409 (Iowa 1923) (historic recognition of spousal allowance rights)
- Clark v. Rameker, 134 S. Ct. 2242 (2014) (inherited IRAs must be maintained as inherited accounts; nonspouse cannot treat as own)