What Families Need to Know After a Death in Nebraska

Nebraska is one of the few remaining states with an inheritance tax — a tax paid by the people who receive assets, not the estate itself. The rates and exemptions vary by how closely related the beneficiary is to the deceased. Nebraska's probate system runs through the County Court (not the District Court — this is unusual), follows the Uniform Probate Code, and has a $100,000 small estate threshold. This guide covers the six areas where Nebraska law most affects what you need to do after a death.

Probate
Probate & Small Estate Rules in Nebraska

Nebraska probate is filed in the County Court of the county where the deceased lived — not the District Court. This is one of Nebraska's more unusual features; most states route probate through a higher-level trial court. Nebraska has a County Court in each of its 93 counties, making access relatively local.

Nebraska follows the Uniform Probate Code (UPC), which provides for informal administration: a personal representative can handle routine estate matters — collecting assets, paying debts, distributing property — without seeking court approval at each step. Formal supervised administration is available when disputes arise or interested parties request court involvement.

Nebraska's small estate affidavit lets heirs collect personal property worth $100,000 or less without opening probate, starting 30 days after death (Neb. Rev. Stat. § 30-24,125). Nebraska real estate has its own affidavit: if the decedent's Nebraska real property is worth $100,000 or less (based on the assessed value), the heirs can file an affidavit with the county register of deeds 30 days after death (Neb. Rev. Stat. § 30-24,129). Larger estates generally need probate unless the property passes by survivorship, a transfer-on-death deed, or a living trust.

Creditors must present claims within 2 months of the first published notice to creditors. If no notice is published, the deadline is 3 years after death (Neb. Rev. Stat. § 30-2485). Executor compensation is set at a "reasonable" amount — Nebraska has no statutory fee schedule, unlike California. A typical Nebraska probate takes 5–12 months from filing to close.

If you are weighing whether to hire an attorney, see probate lawyer costs by state for typical fee ranges, including Nebraska. Executor pay is covered in executor fees by state.

Wills
Will Signing Requirements in Nebraska

A valid Nebraska will requires the signature of the testator plus two witnesses, each of whom saw the testator sign or heard the testator acknowledge the signature or the will (Neb. Rev. Stat. § 30-2327). The witnesses do not have to sign in each other's presence. Nebraska does not require notarization for a standard witnessed will, but a self-proving affidavit — signed before a notary — allows the will to be admitted to probate without the witnesses having to appear in court. Using a self-proving affidavit is good practice and adds little cost or complexity.

Nebraska also recognizes holographic wills: a will is valid without witnesses if the signature, the material provisions, and an indication of the date are in the testator's own handwriting (Neb. Rev. Stat. § 30-2328). Holographic wills are legally valid in Nebraska, but they are more frequently challenged and harder to admit without clear evidence of the testator's intent. If you find a handwritten document that appears to be a will, do not discard it — present it to the County Court.

If someone dies without a valid will in Nebraska, the intestate succession rules under Neb. Rev. Stat. § 30-2302 determine who inherits. Generally, assets pass first to a surviving spouse, then to children, then to parents, then to more distant relatives. The intestate rules do not account for personal wishes, long-term partnerships without marriage, or stepchildren — all strong reasons to have a written will in place.

Advance Directive
Nebraska Advance Directive: DPOAHC and Living Will

Nebraska uses two separate documents to cover advance healthcare planning, unlike states with a single combined form. The first is the Durable Power of Attorney for Health Care (DPOAHC), which names a healthcare agent to make medical decisions on your behalf if you lose capacity. The second is a Living Will Declaration, which sets out your preferences for life-sustaining treatment, artificial nutrition, and similar end-of-life care decisions.

Each document must be signed and either witnessed by two adults or notarized (Neb. Rev. Stat. § 20-404; Neb. Rev. Stat. § 30-3404). Witness rules for the health care power of attorney are strict: the agent, the principal's spouse, parents, children, grandchildren, siblings, likely heirs, and attending physician cannot serve as witnesses (Neb. Rev. Stat. § 30-3405). Choose two neutral adults such as friends or neighbors, or use a notary.

Someone who is seriously ill may also have a medical order about life-sustaining treatment signed by their doctor or other provider. That order guides immediate care, while the DPOAHC and Living Will name an agent and state broader wishes. If you are unsure what is on file, ask the care team.

If you are settling an estate and the deceased had a DPOAHC on file, the agent's authority ends at death. Hospitals and care facilities are required to honor a valid advance directive while the person was living. After death, the personal representative or executor takes over estate decisions — a role entirely separate from the healthcare agent.

Inheritance Tax
Nebraska Inheritance Tax: Rates, Exemptions, and Planning

Nebraska's inheritance tax is one of the state's most distinctive features — and one of the most important to understand when settling an estate. Nebraska is one of only five states that still levies an inheritance tax (Iowa's ended for deaths on or after January 1, 2025). Unlike an estate tax (which is paid by the estate before distribution), Nebraska's inheritance tax is paid by the person receiving the assets. The rate and exemption depend entirely on how closely related the beneficiary is to the deceased.

For deaths on or after January 1, 2023, the rates and exemptions are (Neb. Rev. Stat. § 77-2004; Neb. Rev. Stat. § 77-2005; Neb. Rev. Stat. § 77-2006):

• Surviving spouse: fully exempt.
• Close relatives — parents, grandparents, siblings, children, grandchildren, and other lineal descendants: 1% on amounts over $100,000. Close relatives under age 22 pay no tax.
• Remote relatives — aunts, uncles, nieces, nephews, and their descendants: 11% on amounts over $40,000.
• All others — friends, unmarried partners, and more distant relatives: 15% on amounts over $25,000. Beneficiaries under age 22 in this group pay no tax.

Inheritance tax is due within 12 months of the date of death, with interest after that (Neb. Rev. Stat. § 77-2010). Nebraska inheritance tax applies to property located in Nebraska regardless of where the decedent lived — a non-resident who owns Nebraska real estate or other Nebraska-sited property creates a Nebraska inheritance tax obligation for the beneficiaries.

Nebraska inheritance tax can apply to property whether or not it passes through probate. Jointly owned property, payable-on-death accounts, and other transfers at death can be taxable to the person who receives them (Neb. Rev. Stat. § 77-2002). Life insurance paid to a trust is exempt under the same section; ask the county court or an attorney how other life insurance proceeds are treated in your situation.

For estate planning purposes, leaving assets to a spouse (fully exempt) or close relatives (1% over $100,000) keeps Nebraska inheritance tax low. Domestic partners who are not legally married are taxed at the highest "all others" rate — this is one of the practical consequences of Nebraska's current tax structure that unmarried couples should plan around carefully.

Nebraska's inheritance tax is administered at the county level, not through the state Department of Revenue. The personal representative files the inheritance tax return with the County Court as part of the probate process. If there is no probate, the beneficiaries themselves are responsible for filing and paying the tax.

Vehicle Transfer
Transferring a Vehicle After Death in Nebraska

Nebraska offers a straightforward path to transfer a vehicle for smaller estates. If the decedent's personal property is worth $100,000 or less, the heir can use the Nebraska DMV's Affidavit for Transfer of Decedent's Vehicle/Motorboat to transfer the title without opening probate. The affidavit is available 30 days after death and must be filed with a death certificate or abstract of death, the existing title, and the completed affidavit.

For larger estates that require formal probate, the personal representative uses Letters Testamentary (or Letters of Administration for intestate estates) to transfer the vehicle title through the DMV. The personal representative presents the letters along with the death certificate and the existing title.

Vehicles held in joint tenancy with right of survivorship transfer automatically to the surviving co-owner upon presentation of the death certificate — no affidavit or probate required. Similarly, vehicles held in a living trust transfer to the successor trustee without any court involvement, which is one of the practical advantages of a revocable trust in Nebraska.

Nebraska also allows a transfer-on-death (TOD) vehicle title. If the owner named a beneficiary on the title, the vehicle passes to that person at death without probate, subject to any liens (Neb. Rev. Stat. § 30-2715.01). The beneficiary brings the title and a death certificate to the county treasurer.

Medicaid Recovery
Nebraska Medicaid Estate Recovery

Nebraska Medicaid — administered by the Department of Health and Human Services (DHHS) — has the right to seek repayment from a deceased recipient's estate for Medicaid paid after the recipient turned 55, or while the recipient lived long-term in a nursing facility or other medical institution. The claim can include all Medicaid paid in those periods, not only nursing home costs.

Nebraska uses a broad definition of "estate" for recovery. It includes the probate estate and also assets that pass outside probate, such as joint tenancy property, transfer-on-death deeds, living trusts, life estates, and certain insurance and retirement accounts (Neb. Rev. Stat. § 68-919). Families should not assume that non-probate assets are protected from a Medicaid claim.

Recovery is delayed, not canceled, while any of the following is living:

• A surviving spouse.
• A child under age 21.
• A child of any age who is blind or totally and permanently disabled.

Nebraska DHHS must be notified before assets are distributed from the estate. Distributing assets without clearing potential Medicaid recovery claims can expose the personal representative to personal liability. Contact Nebraska DHHS early in the estate settlement process to determine whether a claim will be asserted and for how much.

If the estate includes a home, Nebraska DHHS may place a lien on it. DHHS will not foreclose on that lien while certain relatives live there: a sibling with an ownership share who lived in the home for at least a year before the recipient entered care, or an adult child who lived there for at least two years before and provided care that delayed the move. Recovery waits until protected family members have died or no longer qualify.

For how the federal estate recovery rules work, which survivors are protected, and how hardship waivers work, see our guide to Medicaid estate recovery.