Avoiding probate can help you simplify the inheritance process. There are several estate planning strategies that Nebraska residents can use to manage and distribute assets efficiently. These can include creating a living trust and using transfer-on-death deeds, among others. Working with a financial advisor can also help you build a personalized estate plan for your goals and needs.
How the Probate Works in Nebraska
This process begins with filing a petition in the county court where the deceased resided. The court receives the death certificate then validates the will, if one exists.
Next, the court appoints a personal representative, often named in the will, to manage the estate. If there is no will, the court will appoint the executor, typically a close relative, to carry out duties such as inventorying the deceased’s assets, notifying creditors and paying any valid debts or taxes owed by the estate. Claims must be reviewed, validated and either paid or contested within a specified time frame, typically four months in Nebraska.
After settling debts, the executor distributes the remaining assets to the beneficiaries named in the will or, in the absence of a will, to heirs according to Nebraska’s intestacy laws. This distribution is subject to court approval, ensuring that the process adheres to legal requirements and the deceased’s wishes are honored.
The court may require the filing of a final accounting, detailing all financial transactions made by the representative, before granting permission to distribute the estate’s assets. On average, probate expenses can eat up 4% to 7% of an estate’s total value, covering court fees, attorney fees and administrative costs like executor fees. In Nebraska, the average probate takes about six to 12 months.
Probate concludes with the closing of the estate. The personal representative must file a final report with the court, outlining payment of debts, distribution of assets and any other relevant information. Upon approval the court will then issue an order officially closing the estate.
Ways to Avoid Probate in Nebraska
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Early estate planning is key to avoiding probate in Nebraska (and other states). Here are five general strategies to consider:
- Living trusts: A revocable living trust allows you to transfer ownership of assets to a trust, maintaining control as the trustee. Upon your death, assets are distributed according to the trust’s terms instead of sent to probate.. This arrangement provides flexibility, privacy and the ability to update your estate plan as needed.
- Joint ownership with right of survivorship: This method is commonly used for real estate, bank accounts, and other valuable assets. It is a straightforward way to ensure the smooth transition of property to a surviving co-owner such as a spouse, family member, or trusted friend.
- Beneficiary designations: Financial accounts such as retirement funds, life insurance policies and bank accounts, allow assets to transfer directly to named beneficiaries without delay or probate intervention.
- Payable-on-death (POD) and transfer-on-death (TOD) accounts: POD and TOD accounts allow you to name a beneficiary who will receive the account funds upon your death. This designation ensures that the account bypasses probate, so it’s important to keep these designations updated to reflect any changes in your life circumstances or wishes.
- Small estate affidavit: Nebraska law provides a simplified process for small estates valued under $50,000. By filing a small estate affidavit, heirs can claim assets without formal probate, making it easier for families with modest estates to settle affairs quickly and efficiently.
Bottom Line
![A senior couple reviewing their estate plan in Nebraska.](https://smartasset.com/wp-content/uploads/sites/2/2024/08/iStock-939722526.jpg)
Avoiding probate in Nebraska can help you streamline the transfer of assets, reduce legal costs and maintain the privacy of your estate. You can reach this goal by establishing a living trust, designating payable-on-death beneficiaries and using joint ownership for real estate and bank accounts, in addition to other estate planning strategies.
Estate Planning Tips
- A financial advisor can help you create a personalized estate plan based on your needs and goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- You can make tax-free gifts during your lifetime as part of an estate planning strategy to minimize the taxable value of your estate.
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