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Nebraska Inheritance Tax Summary

June 19, 2013

Nebraska does not have an “estate” tax that is levied on the size of a person’s estate at death.  Instead Nebraska has an “inheritance” tax that is imposed on the person who receives property at the death of a Nebraska resident or receives Nebraska real estate at the death of a non-resident.  In addition, inheritance tax is payable on certain gifts made within 3 years of death.

The tax rate and allowable exemption depends on how the recipient/beneficiary is related to the person who died.

In general, (1) if the recipient is a parent, grandparent, child or grandchild of the person who dies, the tax rate is one percent (1%) of all property received in excess of $40,000; (2) if the recipient is an aunt, uncle, niece or nephew of the person who died, the tax rate is thirteen percent (13%) of all property received in excess of $15,000; (3) if the recipient is not related to the person who died, the tax rate is eighteen percent (18%) of all property received in excess of $10,000; and (4) transfers to charities are exempt from inheritance tax.

The inheritance tax is due in Nebraska one year after the date of death and there are severe penalties for late payments.

This is a brief summary to help you better understand this complex tax structure.  Space does not permit discussion of the many detailed rules and exceptions that apply.

We believe that better understanding leads to better planning.  Our mission is Effective Planning Made Easy.

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