The Nebraska Probate Process: Step-by-Step

Assess the Estate — What Needs Probate?

• Joint tenancy (JTWROS): Passes to surviving joint tenant automatically — no probate.
• Beneficiary-designated accounts: IRA, 401(k), life insurance, POD/TOD — pass directly, no probate. Note: these assets may still be subject to Nebraska inheritance tax even though they bypass probate.
• Revocable living trust assets: Pass per trust document — no probate. Nebraska inheritance tax still applies.
• Assets in the decedent's name alone: Require small estate affidavit (personal property under $50,000) or informal probate.
• Real estate in the decedent's name alone: Always requires informal probate and a Personal Representative's Deed.

Choose the Right Procedure

• Small Estate Affidavit (§ 30-24,129): Personal property under $50,000 gross value; 30-day wait from date of death; present sworn affidavit directly to the institution. No court. No Letters. Cannot be used for real estate. Note: inheritance tax may still apply even to affidavit transfers.
• Informal Probate (§ 30-2434): File with the County Court registrar in the county where the decedent was domiciled. Registrar issues Letters without a hearing. Used when there is real estate or personal property over $50,000.
• Formal Probate (§ 30-2441): Required for contested wills, disputed heirs, or registrar refusal. County Court hearing required.

File the Application for Informal Probate

File in the County Court — not the District Court — in the county where the decedent was domiciled at death. The Application must include:

• Decedent's name, date and place of death, and domicile county
• Names and addresses of all heirs and devisees
• Name and address of the nominated Personal Representative
• Original will filed with the application (if one exists)
• Statement that the 3-year time limit for informal probate has not expired

The registrar reviews the application and, if complete, issues Letters Testamentary (with will) or Letters of Administration (without will) — no hearing required for informal probate.

Get Your EIN, Open the Estate Account, and Petition for Inheritance Tax Determination

• Apply for a federal EIN at irs.gov — takes minutes online.
• Open a dedicated estate checking account using your Letters Testamentary and the EIN.
• Notify the Social Security Administration of the death.
• Send written notice to all heirs and devisees within a reasonable time of appointment (§ 30-2405).
• Secure and insure all real property.

Publish Notice to Creditors — Start the 60-Day Clock

Publish Notice to Creditors once per week for three consecutive weeks in a legal newspaper in the county where the estate is being administered (§ 30-2401). The 60-day creditor claim period begins on the date of first publication.

Also send direct written notice to all known creditors. Retain and file the publisher's Affidavit of Publication with the County Court.

Prepare the Estate Inventory (Due Within 3 Months)

Prepare an inventory within 3 months of appointment (§ 30-2406), valuing all probate assets at date of death. Nebraska considerations:

• Real estate: Formal appraisal by a licensed Nebraska appraiser. Agricultural land (Nebraska has extensive farmland) requires an agricultural appraiser.
• Farm and ranch assets: Value farm equipment, livestock, stored grain, and crop insurance contracts separately.
• Business interests: Obtain a professional business valuation from a licensed appraiser.
• Financial accounts: Use account balance statements dated on the day of death.

The inventory values are also used for the Petition for Determination of Inheritance Tax — accuracy matters. In informal probate, the inventory is not filed with the court unless an interested party requests it.

Manage Estate Assets During Administration

• Route all estate income through the estate checking account.
• Continue mortgage, property tax, insurance, and utility payments on real property.
• Retitle investment and brokerage accounts in the estate's name using the EIN.
• Continue any existing farm cash rent leases to maintain income.

The Personal Representative has independent statutory authority (§ 30-2415) to sell estate property without court approval when needed to pay debts or facilitate distribution.

Review Claims and Pay Debts

After the 60-day creditor period closes, review all claims. Allow or reject each in writing. A rejected creditor has 60 days from the notice of rejection to petition the court (§ 30-2404).

If the estate is insolvent, pay claims in this priority order (§ 30-2417):

1. Costs and expenses of administration
2. Reasonable funeral expenses
3. Federal taxes and debts with federal preference
4. Reasonable medical expenses of the last illness
5. State taxes and debts with Nebraska preference
6. All other claims

File Tax Returns and Pay Inheritance Tax

Withhold Inheritance Tax, Transfer Property, Distribute, and File the Closing Statement

Before distributing to beneficiaries: Withhold the inheritance tax assessed by the County Court order. Pay the withheld amounts to the county treasurer. Obtain the county court's release confirming the inheritance tax has been paid — this must be filed with the County Court before the Closing Statement is accepted.

Real property: Execute a Personal Representative's Deed for each Nebraska parcel. Record with the county Register of Deeds. Nebraska imposes a documentary stamp tax of $2.25 per $1,000 of consideration — transfers to beneficiaries (not for consideration) may be exempt; confirm with the Register of Deeds.

Vehicles: Transfer title at the Nebraska DMV with certified Letters and a certified death certificate.

Financial accounts: Present certified Letters and death certificate to each institution. Obtain signed receipts from each beneficiary.

Closing Statement (§ 30-2483): File with the County Court after all assets are distributed, all debts paid, and all inheritance tax paid. The Closing Statement cannot be filed until at least 6 months after the date of appointment. The Personal Representative's liability ceases one year after filing.