Nebraska Inheritance Tax Computation Services

The Nebraska Inheritance Tax is due for all estates (and most, if not all, revocable trusts becoming irrevocable at date of death) within 12 months after date of death (DOD). The Inheritance Tax is beneficiary-based, and the tax is structured toward beneficiary classes.

Spouses have an unlimited marital deduction and are not subject to tax. Children, grandchildren, parents, grandparents are taxed at 1%, less certain exemptions and deductions. Aunts, uncles, nieces, nephews, or lineal descendants of the same are taxed at either 11% to 13%, depending on the date of death, less certain exemptions, and deductions. In all other cases, the Inheritance Tax is 15% to18%, depending on the date of death, less certain exemptions, and deductions. Relatives of the stated capacities may enjoy specific tax rates listed above. Because Nebraska Legislature is seemingly (if not actually) ever-changing, the stated rates, etc., are all subject to current Nebraska statutory law.

We have comprehensive experience in computing the Nebraska Inheritance tax for decades. In addition to our keen valuation determinations (see Asset Inventory and Valuation Services), we are vigilant and determining the myriad of exemptions, deductions, and credits available to estates and trusts, that help reduce, if not eliminate, the Nebraska Inheritance Tax.

We also have an excellent track record in addressing asset valuations, deductions, etc., with many county attorneys, throughout the State of Nebraska, with respect to the Inheritance Tax, its determination, and its satisfaction. We can work directly with legal counsel in securing the County Attorney Voluntary Appearance – a key pleading and ingredient in the satisfaction and resolution of the Nebraska Inheritance Tax. In some instances, an estate may involve several counties and several county attorneys.

Because the Nebraska Inheritance Tax serves as a lien on specific Nebraska property, we have the know-how to work with local real estate agencies to either escrow Inheritance Tax amounts to effectively cure and remove any such liens, all in concert with our legal counsel relationships.

Of course, we also work with legal counsel, to ensure that the Inheritance Tax is satisfied in accordance with any applicable provisions of the decedent’s Last Will and Testament and/or Revocable Trust Agreement (irrevocable at the time of death). And finally, we collaborate and coordinate with legal counsel, the probate court, the County Treasurer, the fiduciary (Personal Representative, Trustee, or otherwise), and all other applicable parties to satisfy the Nebraska Inheritance Tax and file the related Certificate(s) with the Probate Court.

While nobody likes to pay tax, we are cognizant of the dire need of many of Nebraska’s counties that rely on Inheritance Tax funds to support their schools, police departments, hospitals, fire departments, etc. At the same time, we work to minimize, and any many cases – eliminate, the Inheritance Tax for estates and trusts.

The Fiduciary Consultant offers collaborative services to legal, accounting, and corporate fiduciary professionals.

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