Nebraska has no state estate tax, but it is one of a handful of states that still charges an inheritance tax, collected by each county and based on how closely a beneficiary is related to the deceased. A valid Nebraska will must be signed by the testator and witnessed, and can also be made self-proved with witness affidavits.
Because Nebraska taxes inheritances based on relationship rather than taxing the estate itself, planning here often focuses on who you name as a beneficiary, not just how much you leave behind. A full Nebraska plan usually includes a will, a durable power of attorney, and health care directives. FastWill's online will builder can help you think through how Nebraska's inheritance tax affects different beneficiaries.
Does Nebraska Have an Estate Tax or Inheritance Tax
Nebraska has no state estate tax, but it does charge an inheritance tax, which is unusual since most states have moved away from this type of tax entirely. According to widely cited guidance on Nebraska law, immediate relatives and siblings pay 1 percent above a $100,000 exemption, more distant relatives pay 11 percent above a $40,000 exemption, and unrelated beneficiaries pay 15 percent above a $25,000 exemption. A surviving spouse is fully exempt regardless of the amount inherited, and for deaths on or after January 1, 2023, beneficiaries under age 22 are also exempt. The county where the deceased lived collects this tax, so confirm current rates directly with that county treasurer's office. The federal estate tax is separate and applies only above $15 million per person in 2026, per the IRS.
How to Make a Valid Will in Nebraska
Under Nebraska Revised Statutes 30-2330, any individual generally competent to be a witness may witness a will, and a will is not invalidated simply because it was signed by an interested witness. However, an interested witness who also receives a gift under the will may be limited to their intestate share unless there is at least one disinterested witness on the document, so it is safer to choose witnesses who are not beneficiaries.
- Be 18 or older and of sound mind
- Put the will in writing and sign it yourself
- Have at least two witnesses, ideally disinterested ones, sign the document
- Name a personal representative and a guardian for minor children
What Happens if You Die Without a Will in Nebraska
Without a valid will, Nebraska intestacy law decides who inherits, generally starting with a surviving spouse and children. Even with a will in place, remember that Nebraska's inheritance tax still applies based on each beneficiary's relationship to you, so a nephew, friend, or unmarried partner named in your will may face a higher tax rate and a lower exemption than a spouse or child would.
Trusts and Probate in Nebraska
Nebraska probate involves filing the will with the court, appointing an executor or administrator, inventorying assets, notifying creditors, and distributing what remains after debts and taxes are paid, including any county inheritance tax owed. A revocable living trust can help keep the plan private and can sometimes simplify how inheritance tax is calculated and paid, though the tax itself generally still applies to trust beneficiaries much as it would to will beneficiaries, so a trust is not a way to avoid the tax.
Because Nebraska's inheritance tax depends on the relationship between you and each beneficiary, it is worth discussing your specific family situation with an estate planning attorney rather than assuming a will or trust alone solves the tax question. Compare the basic tools in our guide to the difference between a will and a trust.
Powers of Attorney and Health Care Decisions
A Financial Power of Attorney in Nebraska can be durable, remaining valid through incapacity, or springing, taking effect only once a specific condition is documented. A Living Will and a Medical Power of Attorney work together, or can be combined into a single Health Care Proxy, to record your treatment preferences and name someone to make medical decisions if you cannot.
If you have moved to or from Nebraska, see our guide on updating your will, trust, and power of attorney after a move, since inheritance tax exposure can change with your state of residence.
Frequently Asked Questions
Does Nebraska have an inheritance tax
Yes. Nebraska is one of a small number of states that still charges a county-level inheritance tax, with rates and exemptions that depend on the beneficiary's relationship to the deceased.
Is a surviving spouse exempt from Nebraska inheritance tax
Yes. A surviving spouse is fully exempt from Nebraska's inheritance tax regardless of how much they inherit.
Does Nebraska have a state estate tax
No. Nebraska has no state-level estate tax, only the county inheritance tax and, for very large estates, the federal estate tax.
Can a beneficiary witness my Nebraska will
The will remains valid, but an interested witness may be limited to their intestate share of any gift unless there is at least one disinterested witness, so it is best to use witnesses who are not beneficiaries.
Does a trust avoid Nebraska inheritance tax
Generally no. Nebraska's inheritance tax typically applies to trust beneficiaries in much the same way it applies to will beneficiaries, so a trust is not primarily a tax avoidance tool here.
Nebraska's county-based inheritance tax makes it especially important to think through who you name as a beneficiary, not just what you leave them. See FastWill's plans and pricing to get your plan started.
