Estate Planning in Nebraska: A Complete Checklist for 2026

Nebraska estate planning has a few traps that don't exist in most other states. The county-administered inheritance tax, the broad Medicaid estate recovery statute, and the 30-day recording deadline for transfer-on-death deeds all demand attention. Miss one, and your family pays — literally.

Here's a practical checklist that covers every major decision.

Step 1: Inventory Your Assets and Titles

Before choosing any legal tools, you need to know what you own and how it's titled. Nebraska is a common law (separate property) state — assets belong to whoever holds the title, not automatically split 50/50 between spouses.

List every asset with its current ownership structure:

• Real property (house, land, rental properties) — check the deed
• Bank accounts — individual, joint, or payable-on-death (POD)
• Retirement accounts (401k, IRA) — check beneficiary designations
• Life insurance policies — check beneficiary designations
• Vehicles — check title (individual, joint, or TOD)
• Investment and brokerage accounts
• Business interests (LLC memberships, partnerships, farm operations)

This inventory determines which assets pass through probate and which don't. Joint accounts with rights of survivorship, POD accounts, and properly designated beneficiary accounts all bypass probate entirely.

Step 2: Execute a Valid Will

Nebraska requires a written will signed by two disinterested witnesses (Neb. Rev. Stat. § 30-2327). No electronic or video wills. Attach a self-proving affidavit (§ 30-2329) — it prevents the court from needing to track down your witnesses decades later.

Your will should name:

• A personal representative (executor) and a backup
• Guardians for minor children (if applicable)
• Specific bequests and residuary beneficiaries
• How debts, taxes, and administrative costs should be paid

Without a will, Nebraska's intestacy laws control everything. Your surviving spouse gets a share (which varies based on whether you have children), and unmarried partners receive nothing.

Step 3: Set Up Powers of Attorney

Two documents, both critical:

Durable power of attorney for finances. Authorizes someone to manage bank accounts, pay bills, file taxes, and handle real estate transactions if you become incapacitated. "Durable" means it survives your incapacity — without it, your family needs a court-appointed conservator.

Health care power of attorney (or medical POA). Names someone to make medical decisions when you can't. Nebraska also recognizes living wills (advance directives) for end-of-life treatment preferences.

Both should be signed, witnessed, and notarized. Keep originals accessible — not locked in a safe deposit box your agent can't open.

Step 4: Address the Inheritance Tax

Nebraska is one of six states that still levies an inheritance tax — and it's collected at the county level, not by the state. Rates depend on the beneficiary's relationship to the deceased:

• Class 1 (spouse, parents, children, siblings): 1% on amounts over $100,000. Surviving spouses are fully exempt.
• Class 2 (aunts, uncles, nieces, nephews): 11% on amounts over $40,000
• Class 3 (everyone else, including unmarried partners): 15% on amounts over $25,000

These rates were updated by LB 310, effective January 1, 2023. If your heirs include anyone beyond immediate family, the tax bill can be substantial. Planning strategies — like trusts, TOD deeds, or lifetime gifts — can reduce or restructure the taxable transfers.

Step 5: Consider Transfer-on-Death Deeds

Nebraska's Uniform Real Property Transfer on Death Act lets you transfer real estate outside of probate by recording a TOD deed with the county register of deeds. The property passes automatically to your named beneficiary at death — no court involved.

Key rules:

• Must be signed by two disinterested witnesses (not beneficiaries or their spouses)
• Must be recorded within 30 days of signing and before your death
• Growing crops default to the probate estate unless explicitly addressed
• The beneficiary remains personally liable for Medicaid recovery claims (§ 76-3418)

TOD deeds are powerful but not foolproof. The Medicaid liability issue alone makes them dangerous for anyone who might need long-term care.

Step 6: Plan for Medicaid Estate Recovery

Under Neb. Rev. Stat. § 68-919, the Nebraska DHHS can recover long-term care costs from the estate of any deceased Medicaid recipient aged 55 or older. Nebraska's definition of "estate" is broader than most states — it includes not just the probate estate but also assets held in joint tenancy, life estates, revocable trusts, and annuities.

If you or a parent might need nursing home care, this planning step is non-negotiable. Strategies include irrevocable trusts (with a 5-year lookback), spending down assets, and understanding the federal protections that prevent recovery when a surviving spouse, minor child, or disabled child is still living.

Step 7: Coordinate Beneficiary Designations

Beneficiary designations on retirement accounts, life insurance, and POD bank accounts override your will. If your 401k still names your ex-spouse and your will names your current spouse, the ex-spouse gets the 401k.

Review every designation annually and after any major life event. Make sure they align with your will, your trust (if you have one), and your overall estate plan.

Step 8: Evaluate Whether You Need a Trust

Not every Nebraska estate needs a trust. The $100,000 small estate affidavit threshold (for both personal property and real property) lets many modest estates skip probate entirely.

A revocable living trust makes sense when:

• Your estate exceeds the small estate thresholds
• You own real property in multiple states (avoiding ancillary probate)
• You want complete privacy (trusts don't go through public court records)
• You have a blended family and need precise distribution controls

The Nebraska Basic Estate Planning Kit covers every step on this checklist — including the inheritance tax worksheet, TOD deed requirements, and Medicaid planning strategies specific to Nebraska law.

See more Nebraska guides →