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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1160
Introduced by Hallstrom, 1.
Read first time January 20, 2026
Committee: Judiciary
A BILL FOR AN ACT relating to property; to amend sections 25-2701,1
30-2301, 30-2302, 30-2322, 30-2323, 30-2325, 30-3803, 30-38,103, and2
77-3503, Reissue Revised Statutes of Nebraska, and sections 30-38013
and 77-2004, Revised Statutes Cumulative Supplement, 2024; to change4
provisions relating to civil procedure and decedents' estates; to5
redefine terms; to change and add requirements relating to contracts6
to make or not to revoke a trust, penalties for contesting a trust,7
and rules of construction for the interpretation of certain trust8
provisions; to allow a certification of trust to establish ownership9
of a homestead; to change provisions relating to the persons who are10
subject to a certain inheritance tax rate; to harmonize provisions;11
and to repeal the original sections. 12
Be it enacted by the people of the State of Nebraska,13
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Section 1. Section 25-2701, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
25-2701 (1) All provisions in the rules and codes of criminal and3
civil procedure governing actions and proceedings in the district court4
not in conflict with statutes specifically governing procedure in county5
courts and related to matters for which no specific provisions have been6
made for county courts shall govern and apply to all actions and7
proceedings in the county court. 8
(2) County courts may seal records of a person as provided under9
sections 43-2,108.01 to 43-2,108.05. 10
(3) Unless specifically provided to the contrary in the Uniform11
Probate Code or unless inconsistent with its provisions, the rules and12
codes of civil procedure, including the rules concerning vacation of13
orders and appellate review, govern proceedings under this section.14
Sec. 2. Section 30-2301, Reissue Revised Statutes of Nebraska, is15
amended to read: 16
30-2301 (1) Any part of a decedent's estate not effectively disposed17
of by will passes by intestate succession to the decedent's heirs as18
prescribed in the following sections of this code, except as modified by19
the decedent's will. 20
(2) A decedent by will may expressly exclude or limit the right of21
an individual or class to succeed to property of the decedent passing by22
intestate succession. If that individual or a member of that class23
survives the decedent, the share of the decedent's intestate estate to24
which that individual or class would have succeeded passes as if that25
individual or each member of that class had disclaimed the intestate26
share. Any part of the estate of a decedent not effectively disposed of27
by his will passes to his heirs as prescribed in the following sections28
of this code. 29
Sec. 3. Section 30-2302, Reissue Revised Statutes of Nebraska, is30
amended to read: 31
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30-2302 The intestate share of the surviving spouse is:1
(1) if there is no surviving issue or parent of the decedent, the2
entire intestate estate; 3
(2) if there is no surviving issue but the decedent is survived by a4
parent or parents, the first one hundred fifty thousand dollars, plus5
one-half of the balance of the intestate estate; 6
(3) if there are surviving issue all of whom are issue of the7
surviving spouse also, the first one hundred fifty thousand dollars, plus8
one-half of the balance of the intestate estate; 9
(4) if there are surviving issue one or more of whom are not issue10
of the surviving spouse, one-half of the intestate estate.11
Sec. 4. Section 30-2322, Reissue Revised Statutes of Nebraska, is12
amended to read: 13
30-2322 A surviving spouse of a decedent who was domiciled in this14
state is entitled to a homestead allowance of seven thousand five hundred15
dollars for a decedent who dies before January 1, 2011, and twenty16
thousand dollars for a decedent who dies on or after January 1, 2011, and17
before January 1, 2027, and twenty-five thousand dollars for a decedent18
who dies on or after January 1, 2027. If there is no surviving spouse,19
each minor child and each dependent child of the decedent is entitled to20
a homestead allowance amounting to the amount allowed for a surviving21
spouse divided by the number of minor and dependent children of the22
decedent. The homestead allowance is exempt from and has priority over23
all claims against the estate except for costs and expenses of24
administration. Homestead allowance is in addition to any share passing25
to the surviving spouse or minor or dependent child by the will of the26
decedent unless otherwise provided therein, by intestate succession or by27
way of elective share. 28
Sec. 5. Section 30-2323, Reissue Revised Statutes of Nebraska, is29
amended to read: 30
30-2323 (1) In addition to the homestead allowance, the surviving31
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spouse of a decedent who was domiciled in this state is entitled from the1
estate to value not exceeding five thousand dollars for a decedent who2
dies before January 1, 2011, and twelve thousand five hundred dollars for3
a decedent who dies on or after January 1, 2011 , and before January 1,4
2027, and seventeen thousand five hundred dollars for a decedent who dies5
on or after January 1, 2027, in excess of any security interests therein6
in household furniture, automobiles, furnishings, appliances, and7
personal effects. If there is no surviving spouse, children of the8
decedent are entitled jointly to the same value unless the decedent has9
provided in his or her will that one or more of such children shall be10
disinherited, in which case only those children not so disinherited shall11
be so entitled. For purposes of this section, disinherited means12
providing in one's will that a child shall take nothing or a nominal13
amount of ten dollars or less from the estate. 14
(2) If encumbered chattels are selected and if the value in excess15
of security interests, plus that of other exempt property, is less than16
the amount allowed under subsection (1) of this section, or if there is17
not that amount worth of exempt property in the estate, the spouse or18
children are entitled to other assets of the estate, if any, to the19
extent necessary to make up the amount allowed under subsection (1) of20
this section. Rights to exempt property and assets needed to make up a21
deficiency of exempt property have priority over all claims against the22
estate except for costs and expenses of administration, except for claims23
filed by the Department of Health and Human Services pursuant to section24
68-919 notwithstanding the order of payment established in section25
30-2487, and except that the right to any assets to make up a deficiency26
of exempt property shall abate as necessary to permit prior payment of27
homestead allowance and family allowance. 28
(3) These rights are in addition to any benefit or share passing to29
the surviving spouse by the will of the decedent unless otherwise30
provided therein, by intestate succession, or by way of elective share.31
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These rights are in addition to any benefit or share passing to the1
surviving children by intestate succession and are in addition to any2
benefit or share passing by the will of the decedent to those surviving3
children not disinherited unless otherwise provided in the will.4
Sec. 6. Section 30-2325, Reissue Revised Statutes of Nebraska, is5
amended to read: 6
30-2325 If the estate is otherwise sufficient, property specifically7
devised is not used to satisfy rights to homestead and exempt property.8
Subject to this restriction, the surviving spouse, the guardians of the9
minor children, or children who are adults may select property of the10
estate as homestead allowance and exempt property. After giving such11
notice as the court may require in a proceeding initiated under the12
provisions of section 30-2405, the personal representative may make these13
selections if the surviving spouse, the children or the guardians of the14
minor children are unable or fail to do so within a reasonable time or if15
there are no guardians of the minor children. The personal representative16
may execute an instrument or deed of distribution to establish the17
ownership of property taken as homestead allowance or exempt property.18
The personal representative may determine the family allowance in a lump19
sum not exceeding nine thousand dollars for a decedent who dies before20
January 1, 2011, and twenty thousand dollars for a decedent who dies on21
or after January 1, 2011 , and before January 1, 2027, and twenty-five22
thousand dollars for a decedent who dies on or after January 1, 2027, or23
periodic installments not exceeding seven hundred fifty dollars per month24
for one year for a decedent who dies before January 1, 2011, and one25
thousand six hundred sixty-six dollars and sixty-seven cents per month26
for one year for a decedent who dies on or after January 1, 2011 , and27
before January 1, 2027, and two thousand eighty-three dollars and thirty-28
three cents per month for one year for a decedent who dies on or after29
January 1, 2027. The personal representative may disburse funds of the30
estate in payment of the family allowance and any part of the homestead31
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allowance payable in cash. The personal representative or any interested1
person aggrieved by any selection, determination, payment, proposed2
payment, or failure to act under this section may petition the court for3
appropriate relief, which relief may provide a family allowance larger or4
smaller than that which the personal representative determined or could5
have determined. 6
The homestead allowance, the exempt property, and the family7
allowance as finally determined by the personal representative or by the8
court, shall vest in the surviving spouse as of the date of decedent's9
death, as a vested indefeasible right of property, shall survive as an10
asset of the surviving spouse's estate if unpaid on the date of death of11
such surviving spouse, and shall not terminate upon the death or12
remarriage of the surviving spouse. 13
Sec. 7. Section 30-3801, Revised Statutes Cumulative Supplement,14
2024, is amended to read: 15
30-3801 (UTC 101) Sections 30-3801 to 30-38,115 and sections 9 to 1116
of this act shall be known and may be cited as the Nebraska Uniform Trust17
Code. 18
Sec. 8. Section 30-3803, Reissue Revised Statutes of Nebraska, is19
amended to read: 20
30-3803 (UTC 103) In the Nebraska Uniform Trust Code:21
(1) "Action", with respect to an act of a trustee, includes a22
failure to act. 23
(2) "Ascertainable standard" means a standard relating to an24
individual's health, education, support, or maintenance within the25
meaning of section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue26
Code of 1986, as defined in section 49-801.01. 27
(3) "Beneficiary" means a person that: 28
(A) has a present or future beneficial interest in a trust, vested29
or contingent; or 30
(B) in a capacity other than that of trustee, holds a power of31
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appointment over trust property. 1
(4) "Charitable trust" means a trust, or portion of a trust, created2
for a charitable purpose described in subsection (a) of section 30-3831.3
(5) "Conservator" means a person appointed by the court to4
administer the estate of a minor or adult individual.5
(6) "Environmental law" means a federal, state, or local law, rule,6
regulation, or ordinance relating to protection of the environment.7
(7) "Guardian" means a person who has qualified as a guardian of a8
minor or incapacitated person pursuant to testamentary or court9
appointment, but excludes one who is merely a guardian ad litem.10
(8) "Interests of the beneficiaries" means the beneficial interests11
provided in the terms of the trust. 12
(9) "Jurisdiction", with respect to a geographic area, includes a13
state or country. 14
(10) "Person" means an individual, corporation, business trust,15
estate, trust, partnership, limited liability company, association, joint16
venture, government; governmental subdivision, agency, or17
instrumentality; public corporation, or any other legal or commercial18
entity. 19
(11) "Power of withdrawal" means a presently exercisable general20
power of appointment other than a power: (A) which is exercisable by a21
trustee and limited by an ascertainable standard; or (B) which is22
exercisable by another person only upon consent of the trustee or a23
person holding an adverse interest. 24
(12) "Property" means anything that may be the subject of ownership,25
whether real or personal, legal or equitable, or any interest therein.26
(13) "Qualified beneficiary" means a beneficiary who, on the date27
the beneficiary's qualification is determined: 28
(A) is a distributee or permissible distributee of trust income or29
principal; 30
(B) would be a distributee or permissible distributee of trust31
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income or principal if the interests of the distributees described in1
subdivision (A) of this subdivision terminated on that date without2
causing the trust to terminate; or 3
(C) would be a distributee or permissible distributee of trust4
income or principal if the trust terminated on that date.5
(14) "Regulated financial-service institution" means a state-6
chartered or federally chartered financial institution in which the7
monetary deposits are insured by the Federal Deposit Insurance8
Corporation. 9
(15) "Revocable", as applied to a trust, means revocable by the10
settlor without the consent of the trustee or a person holding an adverse11
interest. 12
(16) "Settlor" means a person, including a testator, who creates, or13
contributes property to, a trust. If more than one person creates or14
contributes property to a trust, each person is a settlor of the portion15
of the trust property attributable to that person's contribution except16
to the extent another person has the power to revoke or withdraw that17
portion. 18
(17) "Spendthrift provision" means a term of a trust which restrains19
both voluntary and involuntary transfer of a beneficiary's interest.20
(18) "State" includes any state of the United States, the District21
of Columbia, the Commonwealth of Puerto Rico, and any territory or22
possession subject to the legislative authority of the United States.23
(19) "Terms of a trust" means : (A) Except as otherwise provided in24
subdivision (19)(B) of this section, the manifestation of the settlor's25
intent regarding a trust's provisions as: (i) Expressed in the trust26
instrument; or (ii) established by other evidence that would be27
admissible in a judicial proceeding; or (B) the trust's provisions, as28
established, determined, or amended by a: (i) Trustee or other person in29
accordance with applicable law; (ii) court order; or (iii) nonjudicial30
settlement agreement under section 30-3811. the manifestation of the31
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settlor's intent regarding a trust's provisions as expressed in the trust1
instrument or as may be established by other evidence that would be2
admissible in a judicial proceeding. 3
(20) "Trust instrument" means an instrument executed by the settlor4
that contains terms of the trust, including any amendments thereto.5
(21) "Trustee" includes an original, additional, and successor6
trustee, and a cotrustee. 7
Sec. 9. A contract to make a trust, or not to revoke a trust, if8
executed on or after January 1, 1977, shall only be established by: (1)9
Provisions of a will or a trust stating the material provisions of the10
contract; (2) an express reference in a will or trust to a contract and11
extrinsic evidence proving the terms of the contract; or (3) a writing12
signed by the decedent evidencing the contract. The execution of a joint13
trust does not create a presumption of a contract not to revoke the14
trust. 15
Sec. 10. A provision in a trust purporting to penalize any16
interested person for contesting the trust or instituting other17
proceedings relating to the trust is unenforceable if probable cause18
exists for instituting proceedings. 19
Sec. 11. The rules of construction that apply in this state to the20
interpretation and disposition of property by will shall also apply as21
appropriate to the interpretation of the terms of a trust and the22
disposition of the trust property. 23
Sec. 12. Section 30-38,103, Reissue Revised Statutes of Nebraska, is24
amended to read: 25
30-38,103 (a) A certification of trust may confirm the following26
facts or contain the following information: 27
(1) The existence of a trust and, for an inter vivos trust, the date28
of execution or, for a testamentary trust, the date of death of the29
decedent; 30
(2) The identity of the grantor, settlor, or testator and each31
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currently acting trustee; 1
(3) The powers of the trustee and any restrictions imposed upon the2
trustee in dealing with the assets of the trust; 3
(4) The name or method of choosing successor trustees;4
(5) The revocability or irrevocability of the trust and the identity5
of any person holding a power to revoke it; 6
(6) If there is more than one trustee, whether all of the currently7
acting trustees must, or if less than all, may, act to exercise8
identified powers of the trustee; 9
(7) The identifying number of the trust and whether it is a social10
security number or an employer identification number;11
(8) The name of each beneficiary and the relationship to the12
grantor, settlor, or testator; 13
(9) The state or other jurisdiction under which the trust was14
established; and 15
(10) The form in which title to the assets of the trust is to be16
taken; and . 17
(11) Any information necessary to establish a person's ownership of18
a homestead for purposes of obtaining a homestead exemption under19
sections 77-3501 to 77-3529. 20
(b) The certification of trust shall contain a statement that the21
trust has not been revoked or amended to make any representations22
contained in the certification of trust incorrect and that the signatures23
are those of all the acting trustees. 24
Sec. 13. Section 77-2004, Revised Statutes Cumulative Supplement,25
2024, is amended to read: 26
77-2004 (1) In the case of a person described in subsection (2) of27
this section father, mother, grandfather, grandmother, brother, sister,28
son, daughter, child or children legally adopted as such in conformity29
with the laws of the state where adopted, any lineal descendant, any30
lineal descendant legally adopted as such in conformity with the laws of31
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the state where adopted, any person to whom the deceased for not less1
than ten years prior to death stood in the acknowledged relation of a2
parent, or the spouse or surviving spouse of any such persons, the rate3
of tax shall be: 4
(a) For decedents dying prior to January 1, 2023, one percent of the5
clear market value of the property received by each person in excess of6
forty thousand dollars; and 7
(b) For decedents dying on or after January 1, 2023, one percent of8
the clear market value of the property received by each person in excess9
of one hundred thousand dollars. 10
(2) Persons subject to inheritance tax at the rate prescribed by11
this section are: 12
(a) A father, mother, grandfather, grandmother, brother, sister,13
son, daughter, child or children legally adopted as such in conformity14
with the laws of the state where adopted; 15
(b) Any lineal descendant; 16
(c) Any lineal descendant legally adopted as such in conformity with17
the laws of the state where adopted; 18
(d) Any person to whom the deceased for not less than ten years19
prior to death stood in the acknowledged relation of a parent;20
(e) Any lineal descendant of a person described in subdivision (d)21
of this subsection; 22
(f) Any lineal descendant of a person described in subdivision (d)23
of this subsection legally adopted as such in conformity with the laws of24
the state where adopted; and 25
(g) The spouse or surviving spouse of any person described in26
subdivisions (a) through (f) of this subsection. 27
(3) (2) Any interest in property, including any interest acquired in28
the manner set forth in section 77-2002, which may be valued at a sum29
less than or equal to the applicable exempt amount under subsection (1)30
of this section shall not be subject to tax. In addition , the homestead31
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allowance, exempt property, and family maintenance allowance shall not be1
subject to tax. Interests passing to the surviving spouse by will, in the2
manner set forth in section 77-2002, or in any other manner shall not be3
subject to tax. Any interest passing to a person described in subsection4
(2) (1) of this section who is under twenty-two years of age shall not be5
subject to tax. 6
Sec. 14. Section 77-3503, Reissue Revised Statutes of Nebraska, is7
amended to read: 8
77-3503 Owner shall mean the owner of record or surviving spouse,9
the vendee in possession under a land contract or surviving spouse, one10
of the joint tenants or tenants in common or surviving spouse, or the11
beneficiary of a trust of which the trustee is the record title owner and12
the beneficiary-occupant (1) has a specific right to occupy the premises13
as stated in the trust instrument, (2) has the right to amend or revoke14
the trust to obtain such power of occupancy or of title, or (3) has the15
power to withdraw the homestead premises from the trust and place the16
record title in such occupant's name. Owner shall also mean a resident of17
a dwelling complex, the record title owner of which is a not-for-profit18
corporation, who has by purchase for fair market value secured a life19
tenancy in a taxable unit of the complex. The deed, trust instrument, or20
contract, or a certification of trust as described in sections 30-38,10221
to 30-38,106, memorandum showing that the criteria of this section have22
been met shall be on file on the appropriate public record as of January23
1 of the year for which exemption is sought, except that if such24
instrument is not on file as of January 1, a copy of such instrument25
shall be attached to such application before the homestead exemption26
shall be granted. 27
Sec. 15. Original sections 25-2701, 30-2301, 30-2302, 30-2322,28
30-2323, 30-2325, 30-3803, 30-38,103, and 77-3503, Reissue Revised29
Statutes of Nebraska, and sections 30-3801 and 77-2004, Revised Statutes30
Cumulative Supplement, 2024, are repealed. 31
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