Estate Planning in Nebraska

Estate planning in Nebraska involves navigating a specific set of state laws that differ in important ways from neighboring states. Understanding these distinctions helps ensure your documents will be valid and your wishes carried out as intended.

Like all states, Nebraska recognizes formally executed wills and living trusts as valid estate planning tools. A standard will here requires 2Neb. Rev. Stat. § 30-2327Verified Sep 16, 2026View source adult witnesses, and adding a notarized self-proving affidavit can streamline the probate process later. The state also recognizes holographic (handwritten) wills, though these have stricter proof requirements and are more vulnerable to legal challenges.

A Nebraska healthcare power of attorney is signed before either 2Neb. Rev. Stat. § 30-3408(1)Verified Jul 15, 2026View source witnesses or a notary publicNeb. Rev. Stat. § 30-3408(1)Verified Jul 15, 2026View source. Witnesses must be at least 18 yearsNeb. Rev. Stat. § 30-3408(1)Verified Jul 15, 2026View source old and cannot be the named agent, blood relatives or anyone who would inherit from the principal. Those restrictions do not apply when the document is notarized instead of witnessed. The agent must be at least 18 yearsNeb. Rev. Stat. § 30-3408(1)Verified Jul 15, 2026View source old, and Nebraska bars the principal’s healthcare providers and employees of the treating facility from serving, subject to the statute’s exceptions. Giving the agent authority over burial or cremation requires the document to be notarized.

A Nebraska financial power of attorney must be notarizedNeb. Rev. Stat. §§ 30-4001 to 30-4045Verified Sep 18, 2026View source; witnesses are not required. The document is durable by defaultNeb. Rev. Stat. §§ 30-4001 to 30-4045Verified Sep 18, 2026View source: it stays in effect if the principal becomes incapacitated. A springing power of attorney, one that takes effect only when the principal becomes incapacitated, is permittedNeb. Rev. Stat. §§ 30-4001 to 30-4045Verified Sep 18, 2026View source.

Nebraska imposes an inheritance tax, which is paid by beneficiaries rather than the estate. The rate depends on the beneficiary's relationship to the deceased—spouses and direct descendants typically pay lower rates or are exempt, while more distant relatives and unrelated heirs face higher rates. This can affect how families structure beneficiary designations and gift-giving.

Nebraska does not require a revocable living trust to be notarizedNeb. Rev. Stat. § 30-3801 et seq.Verified Jul 15, 2026View source. Nebraska allows transfer-on-death deeds for real estate, enabling property to pass directly to named beneficiaries without probate. This is a significant probate avoidance tool that doesn't require creating a trust. Transferring property into a revocable trust does not trigger a property tax reassessment in Nebraska, so property taxes remain at their current level.

Nebraska automatically revokes an ex-spouse as beneficiary on life insurance, retirement accounts, and similar designations upon divorce. However, these automatic revocations can be overridden by a divorce decree or by re-designating the ex-spouse after the divorce.