Nebraska is one of a small handful of states that taxes heirs on their inheritance. The tax rate varies based on the relationship of the recipient to the decedent.
If the decedent’s property passes to their spouse in full, there is no inheritance tax due. Any property passing to any other beneficiary besides a spouse is subject to the inheritance tax, depending on the class in which the recipient falls.
Class 1 beneficiaries include a decedent’s children, grandchildren, other lineal decedents, grandparents, siblings and the spouses of such persons. Class 1 beneficiaries are taxed at a rate of 1% on the value of property in excess of $40,000 per person.
Class 2 beneficiaries include a decedent’s aunts, uncles, nieces, nephews and any lineal decedents of these persons and their spouses. Class 2 beneficiaries are taxed at a rate of 13% on the value of property in excess of $15,000 per person.
Class 3 includes all other beneficiaries. Class 3 beneficiaries are taxed at a rate of 18% on the value property in excess of $10,000 per person.
Inheritance tax returns must be filed in the appropriate county court and the tax must be paid within 1 year of a decedent’s death.
Please Contact Us if you have questions on the Nebraska Inheritance Tax.