Nebraska Inheritance Tax Cases
Last updated: 18 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Nebraska Inheritance Tax — Cases & Authorities
Authorities-first “case notes” for recurring Nebraska inheritance tax issues. Nebraska’s tax is imposed at the county level, administered via the county court, and governed by Neb. Rev. Stat. §§ 77-2001 et seq. Below are practice-focused authority notes you can cite in petitions for determination, receipts, and lien releases.
Authority Note 1 — Framework & 2023 Reform (LB310)
Data: Neb. Rev. Stat. §§ 77-2001 to 77-2040 (Inheritance Tax); 2022 Neb. Laws LB310 effective for deaths on/after Jan 1, 2023; county court practice guides and local rules.
Issue in brief: Which rates/exemptions apply and how to show them in the county court determination.
Rule/Holding (authorities): Relationship-based exemptions and rates apply per statute as amended by LB310; the County Court’s Order Determining Inheritance Tax should set the class, exemption, taxable share, rate table line, and computed tax by beneficiary or class.
Comment: Attach a beneficiary matrix reflecting class determinations (Class 1–3) and LB310 thresholds; where dates of death straddle 2022/2023, reference the correct regime on the face of the order.
Authority Note 2 — Nonresident Decedents: Situs & County Jurisdiction
Data: Neb. Rev. Stat. § 77-2003 (tax on transfers), § 77-2010 (valuation), § 77-2017 (lien), venue and county court jurisdiction statutes.
Issue in brief: When a nonresident’s estate owes Nebraska inheritance tax and which county controls the determination.
Rule/Holding (authorities): Nebraska taxes transfers of Nebraska-situs real property and tangible personal property. Venue typically lies in the county where the Nebraska property is located. Intangibles are usually governed by the decedent’s domicile unless Nebraska business situs is established.
Comment: For multi-county holdings, confirm where each parcel sits and whether multiple county determinations are necessary. Provide deeds, parcel IDs, and appraisals. For entity interests tied to Nebraska operations, evaluate whether facts create Nebraska situs risk.
Authority Note 3 — Valuation Date, Discounts & Evidence
Data: Neb. Rev. Stat. § 77-2010 (valuation rules); Nebraska evidence principles; county court practice.
Issue in brief: How to substantiate fair market value and when discounts are accepted.
Rule/Holding (authorities): Property is valued at fair market value at death (or the statutory measure if specified). Appraisals should be attached for real property; personal property values require credible invoices, guides, or expert statements. Courts may consider appropriate discounts for fractional interests or closely held entities if supported by competent evidence.
Comment: Provide qualified appraisals (USPAP compliant), capitalization/market methods for entity interests, and specific comps. Unsupported “rule-of-thumb” discounts are frequently rejected.
Authority Note 4 — Deductions, Expenses & Debt Allocation
Data: Neb. Rev. Stat. §§ 77-2002, 77-2004 (taxable transfer & exemptions), local practice regarding allowance of administration expenses and debts.
Issue in brief: What reductions the court will recognize before computing the taxable transfer.
Rule/Holding (authorities): Nebraska inheritance tax is imposed on the transfer after statutory exemptions; courts generally require proof of allowable expenses (probate fees, administration, debts) that directly reduce the amount passing to beneficiaries.
Comment: Attach invoices, court approvals, paid receipts, and any secured-debt payoff statements. Identify whether expenses relate to Nebraska property or general estate administration.
Authority Note 5 — Deadlines, Interest & County Lien
Data: Neb. Rev. Stat. § 77-2017 (lien), § 77-2018 (interest), § 77-2019 (receipt/discharge), county treasurer & county attorney procedures.
Issue in brief: Timing to obtain the order, pay the tax, and clear title for closings.
Rule/Holding (authorities): An inheritance tax lien attaches at death to Nebraska real property and remains until tax is determined and paid. Interest applies if unpaid beyond statutory time. The County Treasurer issues a Receipt or the court records a Discharge to clear title.
Comment: For imminent closings, coordinate early with the county attorney and treasurer; many counties accept expedited review if complete appraisals and draft orders are provided.
Authority Note 6 — Beneficiary Classification & Relationship Proof
Data: Neb. Rev. Stat. §§ 77-2004 to 77-2006 (classes, exemptions, rates as amended by LB310); evidentiary rules for establishing relationship.
Issue in brief: Determining the correct beneficiary class and exemption under LB310.
Rule/Holding (authorities): Rates and exemptions turn on relationship (e.g., spouse exempt under separate rules; lineal vs. collateral vs. unrelated). The court may require birth/marriage certificates, adoption decrees, or affidavits to prove class.
Comment: Present a schedule assigning each heir/legatee to a statutory class with citation to the controlling section and the LB310 threshold you applied.
References (Primary Sources)
- Nebraska Revised Statutes §§ 77-2001 to 77-2040 — Inheritance Tax (definitions, classes, exemptions, rates, valuation, lien, interest, discharge).
- LB310 (2022) — Amendments effective for deaths on/after Jan 1, 2023 (higher exemptions; adjusted rates).
- County Court practice — Local rules, county attorney checklists, and model Order Determining Inheritance Tax (varies by county).
- County Treasurer procedures — Payment, receipts, and recording of releases to clear title.