All property, including proceeds of life insurance receivable by the executor or administrator to the extent of the amount receivable by the executor or administrator as insurance under policies upon the life of the decedent, which shall pass by will or by the intestate laws of this state from any person who, at the time of death was a resident of this state, or, if the decedent was not a resident, any part of the property within this state, except property exempted by the provisions of Chapter 77, article 20, shall be subject to tax at the rates prescribed by sections 77-2004 to 77-2006.

Annotations

Inheritance taxes are imposed on each beneficiary upon the value of property received by him while estate taxes are upon the right to transmit property and are based upon the whole estate transmitted. Nielsen v. Sidner, 191 Neb. 324, 215 N.W.2d 86 (1974).
To authorize imposition of tax, decedent must have interest in property at time of his death. County of Holt v. Gallagher, 156 Neb. 457, 56 N.W.2d 621 (1953).
A foreign corporation organized exclusively for charitable purposes, although it has domesticated in this state, is not exempt from payment of inheritance tax. In re Estate of Sautter, 142 Neb. 42, 5 N.W.2d 263 (1942).
Property escheating to state is not subject to inheritance tax. In re Estate of O'Connor, 126 Neb. 182, 252 N.W. 826 (1934).
Where property passes by will, it is subject to an inheritance tax even though the devise or bequest was made with the intention of carrying out a previous contract. Krug v. Douglas County, 114 Neb. 517, 208 N.W. 665 (1926).
Legacy to religious institution and to trustees of state cemetery is subject to inheritance tax. In re Rudge's Estate, 114 Neb. 335, 207 N.W. 520 (1926).
Legislature has power to provide for taxation upon inheritance. In re Sanford, 90 Neb. 410, 133 N.W. 870 (1911); State ex rel. Slabaugh v. Vinsonhaler, 74 Neb. 675, 105 N.W. 472 (1905).
Right to succeed to title to mortgage on Nebraska land, payable to nonresident of state, is not subject to tax. Dodge County v. Burns, 89 Neb. 534, 131 N.W. 922 (1911).
Where stocks were held by foreign trustee in trust for resident of this state, property was subject to inheritance tax. Douglas County v. Kountze, 84 Neb. 506, 121 N.W. 593 (1909).
Inheritance tax is not a property tax but a tax upon the right of succession. State ex rel. Slabaugh v. Vinsonhaler, 74 Neb. 675, 105 N.W. 472 (1905).

(1) Any interest in property whether created or acquired prior or subsequent to August 27, 1951, shall be subject to tax at the rates prescribed by sections 77-2004 to 77-2006, except property exempted by the provisions of Chapter 77, article 20, if it shall be transferred by deed, grant, sale, or gift, in trust or otherwise, and: (a) Made in contemplation of the death of the grantor; (b) intended to take effect in possession or enjoyment, after his or her death; (c) by reason of death, any person shall become beneficially entitled in possession or expectation to any property or income thereof; or (d) held as joint owners or joint tenants by the decedent and any other person in their joint names, except such part thereof as may be shown to have originally belonged to such other person and never to have been received or acquired by the latter from the decedent for less than an adequate and full consideration in money or property, except that when such property or any part thereof, or part of the consideration with which such property was acquired, is shown to have been at any time acquired by such other person from the decedent for less than an adequate and full consideration in money or property, there shall be excepted only such part of the value of such property as is proportionate to the consideration furnished by such other person or, when any property has been acquired by gift, bequest, devise, or inheritance by the decedent and any other person as joint owners or joint tenants and their interests are not otherwise specified or fixed by law, then to the extent of the value of a fractional part to be determined by dividing the value of the property by the number of joint owners or joint tenants.

(2) For the purpose of subsection (1) of this section, if the decedent, within a period of three years ending with the date of his or her death, except in the case of a bona fide sale for an adequate and full consideration for money or money's worth, transferred an interest in property for which a federal gift tax return is required to be filed under the provisions of the Internal Revenue Code, such transfer shall be deemed to have been made in contemplation of death within the meaning of subsection (1) of this section; no such transfer made before such three-year period shall be treated as having been made in contemplation of death in any event.

(3) Proceeds of life insurance receivable by a trustee, of either an inter vivos trust or a testamentary trust, as insurance under policies upon the life of the decedent shall not be subject to inheritance tax. This subsection shall not apply if the decedent's estate is the beneficiary of the trust.

Annotations

In determining whether to impose inheritance tax under subdivision (1)(b) of this section on a transferred interest in property, a court must consider all the surrounding circumstances of the transfer rather than simply the form of the transferring legal documents, in order to determine if a decedent intended, as a matter of fact rather than a technical vesting of title or estates, to retain a substantial economic benefit or actual use of the property until death. In re Estate of Lofgreen, 312 Neb. 937, 981 N.W.2d 585 (2022).
Costs and attorney's fees in litigation independent of the estate are not deductible in inheritance tax proceedings. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).
Contract subscribing money to college endowment and for scholarship payable on subscriber's death was donative and money thereby transferred therefor was taxable. In re Wheeler's Estate, 119 Neb. 344, 228 N.W. 861 (1930).
Lands, conveyed by deed in which grantor retained life estate and land conveyed by absolute deeds delivered after grantor's death not intended to take effect previously in possession or enjoyment, may be subject to inheritance tax. In re Estate of Bronzynski, 116 Neb. 196, 216 N.W. 558 (1927).

The tax imposed upon transfers under sections 77-2001 and 77-2002 shall be paid to the treasurer of the proper county and all heirs, legatees and devisees, personal representatives, other recipients of property subject to tax, and trustees shall be liable for any and all such taxes until the same shall have been paid as hereinafter directed. This tax shall be a lien on the real property subject thereto until paid or otherwise terminated pursuant to section 77-2037, except that no interest in any property passing from the decedent to the decedent's surviving spouse shall be subject to the lien.

Annotations

This section provides that personal representatives and recipients of property are liable for the payment of inheritance tax on transfers upon death and that there is a lien on the real property subject to the tax until it is paid or terminated by section 77-2039. In re Estate of Reed, 271 Neb. 653, 715 N.W.2d 496 (2006).
When will contest was settled between beneficiaries and heirs at law, and stipulation for a decree of distribution in accord with settlement has been made, and there is no intent thereby to evade or reduce the inheritance tax, the tax hereunder should be computed upon portion received by each beneficiary under the decree. In re Estate of Kierstead, 122 Neb. 694, 241 N.W. 274 (1932).
Agreement between devisees to satisfy claim against estate in favor of one of them by conveyance of portion of such real estate to claimant will not exempt it. In re Estate of Sanford, 90 Neb. 410, 133 N.W. 870 (1911).
An inheritance tax is imposed on a beneficiary's right to receive a portion of the property of the decedent and is a tax of the beneficiary and not of the decedent. In re Estate of Smatlan, 1 Neb. App. 295, 501 N.W.2d 718 (1992).
Where decedent's will directed that all estate and inheritance taxes should be paid from body of estate and not deducted from devises or legacies but residue was not sufficient to pay federal estate taxes and state death taxes, Nebraska apportionment statute controls and bequest to charity should not be reduced by payment thereof. First Nat. Bank of Omaha v. United States, 490 F.2d 1054 (8th Cir. 1974).
Where all of estate except devises and legacies is not sufficient to pay tax burden, decedent's bequests to charity should not be reduced by payment of federal estate and state death taxes. First Nat. Bank of Omaha v. United States, 340 F.Supp. 232 (D. Neb. 1972).

(1) In the case of a father, mother, grandfather, grandmother, brother, sister, son, daughter, child or children legally adopted as such in conformity with the laws of the state where adopted, any lineal descendant, any lineal descendant legally adopted as such in conformity with the laws of the state where adopted, any person to whom the deceased for not less than ten years prior to death stood in the acknowledged relation of a parent, or the spouse or surviving spouse of any such persons, the rate of tax shall be:

(a) For decedents dying prior to January 1, 2023, one percent of the clear market value of the property received by each person in excess of forty thousand dollars; and

(b) For decedents dying on or after January 1, 2023, one percent of the clear market value of the property received by each person in excess of one hundred thousand dollars.

(2) Any interest in property, including any interest acquired in the manner set forth in section 77-2002, which may be valued at a sum less than or equal to the applicable exempt amount under subsection (1) of this section shall not be subject to tax. In addition the homestead allowance, exempt property, and family maintenance allowance shall not be subject to tax. Interests passing to the surviving spouse by will, in the manner set forth in section 77-2002, or in any other manner shall not be subject to tax. Any interest passing to a person described in subsection (1) of this section who is under twenty-two years of age shall not be subject to tax.

Annotations

1. Family member

2. Tax rate

1. Family member

The language "any person to whom the deceased for not less than ten years prior to death stood in the acknowledged relation of a parent" is not limited in application to blood relatives, and includes parties to whom the decedent stood "in loco parentis". In determining if the requisite acknowledged parental relationship exists for purposes of this section, the following factors should guide the trial court: (1) the family, (2) assumption of the responsibility for support beyond occasional gifts and financial aid, (3) exercise of parental authority and discipline, (4) relationship by blood or marriage, (5) advice and guidance to the child, (6) sharing of time and affection, and (7) existence of written documentation evincing the decedent's intent to act as parent. In re Estate of Ackerman, 250 Neb. 665, 550 N.W.2d 678 (1996).
For the purpose of determining whether a devisee under a will is a "person to whom the deceased for not less than ten years prior to death stood in the acknowledged relation of a parent" under this section, it is not necessary that there be a written acknowledgment. In re Estate of Stanton, 245 Neb. 942, 516 N.W.2d 586 (1994).
Section 77-2005.01 expands the operation of this section and section 77-2005, extending the same tax treatment to the relatives of a former spouse to whom the deceased person was married at the time of the spouse's death, but in no sense conflicts with either of the other two statutes. In re Estate of Morse, 241 Neb. 40, 486 N.W.2d 195 (1992).
Physical absence from home of testatrix, while attending school, did not of itself prevent stepdaughter from being member of household of testatrix for inheritance tax purposes. Wondra v. Platte Valley State Bank & Trust Co., 194 Neb. 41, 230 N.W.2d 182 (1975).
Persons standing in loco parentis for ten years prior to death are within provisions of this section even though they are not relatives of the blood. In re Estate of Dowell, 149 Neb. 599, 31 N.W.2d 745 (1948).
Factual findings necessary in determining whether the requisite acknowledged parent-child relationship of this section exists should be reviewed for sufficient evidence and should not be disturbed on appeal unless clearly wrong. In re Estate of Chambers, 27 Neb. App. 398, 932 N.W.2d 343 (2019); In re Estate of Sedlacek, 27 Neb. App. 390, 932 N.W.2d 91 (2019).
The following factors serve as appropriate guideposts to the trial court in making a determination of an acknowledged relationship of a parent under this section: (1) reception of the child into the home and treatment of the child as a member of the family, (2) assumption of the responsibility for support beyond occasional gifts and financial aid, (3) exercise of parental authority and discipline, (4) relationship by blood or marriage, (5) advice and guidance to the child, (6) sharing of time and affection, and (7) existence of written documentation evincing the decedent's intent to act as parent. In re Estate of Chambers, 27 Neb. App. 398, 932 N.W.2d 343 (2019); In re Estate of Sedlacek, 27 Neb. App. 390, 932 N.W.2d 91 (2019).
Even though a natural parent-child relationship may exist elsewhere, if the parties regard each other in all of the usual incidents and relationships of family life as parent and child, the benefits of this section should be allowed. In re Estate of Malloy, 15 Neb. App. 755, 736 N.W.2d 399 (2007).
The burden is on the taxpayer to show that he or she clearly falls within the statutory language. In re Estate of Malloy, 15 Neb. App. 755, 736 N.W.2d 399 (2007).
Persons standing in loco parentis are within the intent and scope of this section. The fact that a parent-child relationship may start when both parties are adults, or may begin when the child is a minor and continue after that child reaches adulthood, is not a bar to a claim brought under this section. While a child's residence is necessarily a factor to be considered in determining whether a parent-child relationship exists for purposes of this section, it is not the only factor. In re Estate of Quinn, 1 Neb. App. 1025, 510 N.W.2d 488 (1993).

2. Tax rate

Clear market value is measured by the fair market value of the property as of the date of the death of the grantor, less the consideration paid for the property. In re Estate of Craven, 281 Neb. 122, 794 N.W.2d 406 (2011).
An inheritance by the widower of a daughter is not taxable at the rate prescribed by this section. Todd v. County of Box Butte, 169 Neb. 311, 99 N.W.2d 245 (1959).
For purpose of inheritance tax, property should be valued at amount of money which it would produce if offered and sold for cash at time of death of decedent. In re Woolsey's Estate, 109 Neb. 138, 190 N.W. 215 (1922).
Law abolishing estates of dower and curtesy gives surviving spouse enlarged estate of same kind and nature as that of dower or curtesy, and, like dower, is not subject to inheritance tax. In re Estate of Strahan v. Wayne County, 93 Neb. 828, 142 N.W. 678 (1913).
Where widow elects to take under the will, her interest, to extent of statutory interest, is exempt from tax. In re Estate of Sanford, 91 Neb. 752, 137 N.W. 864 (1912).

(1) In the case of an uncle, aunt, niece, or nephew related to the deceased by blood or legal adoption, or other lineal descendant of the same, or the spouse or surviving spouse of any of such persons, the rate of tax shall be:

(a) For decedents dying prior to January 1, 2023, thirteen percent of the clear market value of the property received by each person in excess of fifteen thousand dollars; and

(b) For decedents dying on or after January 1, 2023, eleven percent of the clear market value of the property received by each person in excess of forty thousand dollars.

(2) If the clear market value of the beneficial interest is less than or equal to the applicable exempt amount under subsection (1) of this section, it shall not be subject to tax. In addition, any interest passing to a person described in subsection (1) of this section who is under twenty-two years of age shall not be subject to tax.

Annotations

Section 77-2005.01 expands the operation of section 77-2004 and this section, extending the same tax treatment to the relatives of a former spouse to whom the deceased person was married at the time of the spouse's death, but in no sense conflicts with either of the other two statutes. In re Estate of Morse, 241 Neb. 40, 486 N.W.2d 195 (1992).
The Legislature may properly distinguish inheritance tax laws in favor of blood relations, since such distinction is neither arbitrary nor unconstitutionally ambiguous. Ralston v. County of Dawson, 200 Neb. 678, 264 N.W.2d 868 (1978).
A more burdensome tax is imposed in the case of named remote relatives by blood or legal adoption. Todd v. County of Box Butte, 169 Neb. 311, 99 N.W.2d 245 (1959).

(1) For the purposes of sections 77-2004 and 77-2005, relatives of the decedent shall include:

(a) Relatives of a former spouse to whom the decedent was married at the time of the death of the former spouse and relatives of a spouse to whom the decedent was married at the time of his or her death; and

(b) Relatives of a spouse or former spouse of the decedent's parent, grandparent, child, sibling, uncle, aunt, niece, or nephew, if the decedent's parent, grandparent, child, sibling, uncle, aunt, niece, or nephew was married to the spouse at the date of death of the decedent or at the date of death of such spouse.

(2) The computation of any tax due pursuant to sections 77-2004, 77-2005, and 77-2006 shall be made without regard to Nebraska inheritance tax apportionment.

Annotations

This section expands the operation of sections 77-2004 and 77-2005, extending the same tax treatment to the relatives of a former spouse to whom the deceased person was married at the time of the spouse's death, but in no sense conflicts with either of the other two statutes. In re Estate of Morse, 241 Neb. 40, 486 N.W.2d 195 (1992).

(a) For decedents dying prior to January 1, 2023, eighteen percent of the clear market value of the beneficial interests received by each person in excess of ten thousand dollars; and

(b) For decedents dying on or after January 1, 2023, fifteen percent of the clear market value of the beneficial interests received by each person in excess of twenty-five thousand dollars.

(2) If the clear market value of the beneficial interest is less than or equal to the applicable exempt amount under subsection (1) of this section, it shall not be subject to any tax. In addition, any interest passing to a person who is under twenty-two years of age shall not be subject to tax.

Annotations

The Legislature may properly distinguish inheritance tax laws in favor of blood relations, since such distinction is neither arbitrary nor unconstitutionally ambiguous. Ralston v. County of Dawson, 200 Neb. 678, 264 N.W.2d 868 (1978).
Physical absence from home of testatrix, while attending school, did not of itself prevent stepdaughter from being member of household of testatrix for inheritance tax purposes. Wondra v. Platte Valley State Bank & Trust Co., 194 Neb. 41, 230 N.W.2d 182 (1975).
An inheritance by the widower of a daughter is taxable at the rate prescribed by this section. Todd v. County of Box Butte, 169 Neb. 311, 99 N.W.2d 245 (1959).
Tax is imposed upon the clear market value of the beneficial interest taken by the taxpayer. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).

If any estate includes payments under an employee benefit plan, such payments shall not be subject to Nebraska inheritance taxation to the extent that (1) the benefit is life insurance otherwise excluded from taxation pursuant to section 77-2001, or (2) the benefit is not subject to federal estate taxation pursuant to section 2039 of the Internal Revenue Code.

Annotations

A bequest in the nature of a trust to an association in this state for expenditure by it within this state for exclusively charitable purposes is exempt from inheritance taxes. In re Estate of Halstead, 154 Neb. 31, 46 N.W.2d 779 (1951).
To be exempt from inheritance tax, legacy must come within the strict letter of the statute. In re Rudge's Estate, 114 Neb. 335, 207 N.W. 520 (1926).

The tax imposed by Chapter 77, article 20, in respect of personal property (except tangible personal property having an actual situs in this state) shall not be payable (1) if the decedent is a resident of a state or territory of the United States which at the time of the transfer did not impose a transfer tax or death tax of any character in respect of personal property of residents of this state (except tangible personal property having an actual situs in such state or territory), or (2) if the laws of the state or territory of residence of the decedent at the time of the transfer contained a reciprocal provision under which nonresidents were exempted from transfer taxes or death taxes of every character in respect of personal property (except tangible personal property having an actual situs therein) provided the state or territory of residence of such nonresidents allowed a similar exemption to residents of the state or territory of residence of such decedent. For the purposes of this section the District of Columbia, Puerto Rico, and the Philippine Islands shall be considered territories of the United States.

Annotations

Nebraska's version of the Uniform Reciprocal Transfer Tax Act does not limit the exemption to cases in which the decedent's resident state has imposed a tax on the transfer of the property exempted. In re Estate of Holt, 246 Neb. 50, 516 N.W.2d 608 (1994).

Sections 77-2007.01 and 77-2007.02 shall be so interpreted and construed as to effectuate their general purpose to make uniform the law of those states which enact them. Sections 77-2007.01 and 77-2007.02 shall be known as the Uniform Reciprocal Transfer Tax Act.

Property transferred to either (1) the United States, or any of its departments, instrumentalities, or agencies, or (2) this state, or any governmental subdivision, department, agency, or instrumentality thereof, any municipal corporation or body politic created by or under the laws of Nebraska, or any agency, institution, foundation, or fund administered or operated by any of the same shall be exempt from any inheritance tax imposed by sections 77-2001 to 77-2006, and any amendments thereto.

All bequests, legacies, devises, or gifts to or for the use of any corporation, organization, association, society, institution, or foundation, organized and operating exclusively for religious, charitable, public, scientific, or educational purposes, no part of which is owned or used for financial gain or profit, either by the owner or user, or inures to the benefit of any private stockholder or individual, or to a trustee or trustees exclusively for such religious, charitable, or educational purposes shall not be subject to any tax under the provisions of sections 77-2001 to 77-2006, and any amendments thereto, if any of the following conditions are present:

(1) Such corporation, organization, association, society, institution, or foundation is organized under the laws of this state or of the United States, or

(3) In the event that the corporation, organization, association, society, institution, or foundation is organized or existing under the laws of a territory or another state of the United States or of a foreign state or country, at the date of the decedent's death either of the following occurred:

(a) The territory, other state, foreign state, or foreign country did not impose a legacy, succession, or death tax of any character in respect to property transferred to a similar corporation, organization, association, society, institution, or foundation, organized or existing under the laws of this state, or

(b) The laws of the territory, other state, foreign state, or foreign country contained a reciprocal provision under which property transferred to a similar corporation, organization, association, society, institution, or foundation, organized or existing under the laws of another territory or state of the United States or foreign state or country was exempt from legacy, succession, or death taxes of every character, if the other territory or state of the United States or foreign state or country allowed a similar exemption in respect to property transferred to a similar corporation, organization, association, society, institution, or foundation, organized or existing under the laws of another territory or state of the United States or foreign state or country.

Annotations

Subsection (3) of this section is not applicable if the transfer in question falls into only the second category of transfers set out in the opening paragraph of this section, i.e., transfers "to a trustee or trustees exclusively for . . . religious, charitable, or educational purposes." In re Estate of Breslow, 266 Neb. 953, 670 N.W.2d 797 (2003).
Where decedent's will directed that all estate and inheritance taxes should be paid from body of estate and not deducted from devises or legacies but residue was not sufficient to pay federal estate taxes and state death taxes, Nebraska apportionment statute controls and bequest to charity should not be reduced by payment thereof. First Nat. Bank of Omaha v. United States, 490 F.2d 1054 (8th Cir. 1974).
Where all of estate except devises and legacies is not sufficient to pay tax burden, decedent's bequests to charity should not be reduced by payment of federal estate and state death taxes. First Nat. Bank of Omaha v. United States, 340 F.Supp. 232 (D. Neb. 1972).

Bequests, devises, or transfers of property or any interest therein in trust or otherwise for the life of the legatee, devisee, or transferee, or for a term, and bequests, devises, and transfers of vested or contingent remainder interests in property shall be subject to the provisions of sections 77-2001 to 77-2007.04. Such property or interests therein shall be appraised at times and in the manner provided in sections 77-2018.01 to 77-2025 at what was the fair market value thereof at the time of the death of the decedent. The portion thereof allocable to the temporary estate and the portion thereof allocable to the vested remainder estate shall be computed in accordance with such regulations with respect thereto as the state Tax Commissioner, from time to time, shall promulgate and adopt, and the Tax Commissioner is hereby directed to promulgate and adopt, from time to time, and to furnish to each county judge regulations and tables with respect thereto, based upon sound actuarial principles and prevailing interest rates.

Annotations

A testator may shift the burden of payment of inheritance taxes as between a life estate and remainder interests. Stuckey v. Rosenberg, 169 Neb. 557, 100 N.W.2d 526 (1960).

When property is devised, bequeathed, or otherwise transferred or limited in trust or otherwise in such a manner as to be subject to the tax prescribed in sections 77-2001 to 77-2008, and the rights, interests, or estates of the transferees, legatees, devisees, or beneficiaries are dependent upon contingencies or conditions whereby they may be wholly or in part created, defeated, extended, or abridged, an inheritance tax shall be imposed upon such transfer at the highest rate which, on the happening of any of the contingencies or conditions, would be possible under the provisions of Chapter 77, article 20, or to any person, corporation, or institution payable at the time prescribed in section 77-2010; Provided, that on the happening of any contingency or condition whereby the said property, or any part thereof, is transferred to any person, corporation, or institution, exempt from taxation under the provisions of Chapter 77, article 20, or to any person, corporation, or institution as to whom or which the rate of tax is less than the rate imposed and paid, such person, corporation, or institution shall be entitled to a redetermination of the tax and to a return by the county treasurer or county treasurers of so much of the tax imposed and paid as equals the difference between the amount imposed and paid and the amount which such person, corporation, or institution should pay under Chapter 77, article 20; and provided further, that where such tax imposed and paid is held by the county treasurer or county treasurers, as provided in this section, the county court having jurisdiction is authorized and empowered to enter an order in the estate and forward a copy thereof to the county treasurer or county treasurers, directing said county treasurer or county treasurers to invest and reinvest said funds so held in United States Government bonds, United States treasury certificates, United States treasury notes, or other direct obligations of the United States Government, and interest at the rate drawn by said bonds, certificates, notes or other government obligations, as herein provided, shall be credited to the particular inheritance tax account so held. Upon redetermination of the inheritance tax, the tax refunded, if any, together with the interest received on the sum refunded, shall be paid by the county treasurer or county treasurers in a lump sum to the estate of the deceased person paying said tax, or to the person or persons found entitled thereto by the county court, and the balance of said tax, together with the interest received thereon, shall be credited by the county treasurer or county treasurers to the general inheritance tax fund of the county or counties. Where an estate for life or for a term can be divested by the act or omission of the legatee, devisee, transferee, or beneficiary it shall be taxed as if there were no possibility of such divesting.

In cases where a trust is created or other provisions made whereby any person is given an interest in income or an estate for years, or for life, or other temporary or contingent interest in any property or fund, the tax on both such temporary or contingent interest and on the remainder thereafter shall be charged against and be paid out of the corpus of such property or fund without apportionment between remainders and temporary or contingent estates, and any refund of taxes paid out of corpus shall again become a part of the corpus of such property or fund.

Annotations

Under terms of will, inheritance tax on devise of life estate was payable out of residue. Stuckey v. Rosenberg, 169 Neb. 557, 100 N.W.2d 526 (1960).

Whenever any person or corporation shall be given a power of appointment over any property by a transfer which is subject to the provisions of sections 77-2001 to 77-2008.02, whether such power is created before or after June 13, 1955, such power of appointment shall be deemed a transfer of the interest in the property which is subject to such power from the donor to the donee of such power at the date of the donor's death; Provided, if at the date of the donor's death, the power of appointment is limited, in whole or in part, to be exercised in favor of one or more specific beneficiaries or classes of beneficiaries, then, to the extent it is so limited, such power of appointment shall not be deemed a transfer from the donor to the donee of the power, but shall be deemed a transfer of the interest in the property which is subject to the power from the donor of the power to the specific beneficiary or class of beneficiaries, as of the date of the donor's death.

Annotations

In the special case of a general power of appointment where the donor and donee are also husband and wife, such transfer is not subject to inheritance tax. In re Estate of Nelson, 253 Neb. 414, 571 N.W.2d 269 (1997).
Payments made after death of a life tenant on contract for sale of real estate under power granted her under husband's will are not part of her estate. McDonald v. Shaughnessy, 194 Neb. 221, 231 N.W.2d 332 (1975).

The exercise or failure to exercise any power of appointment by the donee thereof, shall not be deemed a transfer which is subject to the provisions of sections 77-2001 to 77-2008.02.

Annotations

In the case of a general power of appointment, interest in the property transfers from the donor to the donee at the time of the donor's death whether or not the power itself is exercised. In the special case of a general power of appointment where the donor and donee are also husband and wife, such transfer is not subject to inheritance tax. In re Estate of Nelson, 253 Neb. 414, 571 N.W.2d 269 (1997).

(1) When property is devised, bequeathed, or otherwise transferred or limited, in trust or otherwise, in such a manner as to be subject to the tax prescribed in sections 77-2001 to 77-2008.02, and the rights, interest, or estates of the transferees, legatees, devisees, or beneficiaries are dependent upon contingencies or conditions whereby they may be wholly or in part created, defeated, extended, or abridged or when the rights of the transferees, legatees, devisees, or beneficiaries to possession or enjoyment of said property are subject to an intervening life estate or temporary estate, then and in that event any person or persons interested in such property, by giving a bond as provided for in subsection (2) of this section, with surety or sureties approved by the county judge, may elect not to pay the tax resulting from the inheritance or transfer of the uncertain, contingent, or postponed interest until the contingency has occurred, the uncertainty has been resolved, or the person against whom the tax is assessed shall have come into actual possession or enjoyment of the property.

(2) The bond referred to in subsection (1) of this section shall be filed in the county court where the estate proceedings are pending and shall bind the surety or sureties on said bond to the county where the estate proceedings are pending and to such other counties as the county judge may direct in an amount to be determined by the county judge, but not to exceed in any event two times the amount of the estimated tax. Such bond shall be conditioned upon the payment of the tax with interest by the person or persons primarily liable therefor when the contingency has occurred, the uncertainty has been resolved, or the person or persons against whom the tax has been assessed shall have come into the possession or enjoyment of said property.

(3) It is expressly provided that no bond, referred to in subsections (1) and (2) of this section, shall be required on account of the tax resulting from the inheritance or transfer of real property, which is subject to a lien for the tax involved, unless it is the desire of the owner or other person interested in said property to release any such lien against said real estate and in that event, by furnishing a bond as described in subsection (2) of this section, the lien against the real estate shall cease and said property may be transferred free from any lien arising from the inheritance tax. Interest on any such uncertain, contingent, or postponed interest in property shall be charged only at the rate used in valuing such uncertain, contingent, or postponed interest in property pursuant to regulations issued under section 77-2008.

All taxes imposed by sections 77-2001 to 77-2037, unless otherwise herein provided for, shall be due and payable twelve months after the date of the death of the decedent, and interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, shall be charged and collected on any unpaid taxes due from the date the same became payable, and in all cases in which the personal representatives or trustees do not pay such tax within twelve months from the death of the decedent, they shall be required to give bond in the form and to the effect prescribed in section 77-2009 for the payment of the tax together with interest. In addition, for failure to file an appropriate proceeding for the determination of the tax within twelve months after the date of the death of the decedent there shall be added to the amount due a penalty of five percent per month or fraction thereof, up to a maximum penalty of twenty-five percent of the unpaid taxes due. The filing of a petition or an application for probate proceedings or the filing of an application under section 77-2018.07 and payment of the tentative tax payment within twelve months of the decedent's death shall be considered an appropriate proceeding for the determination to avoid a penalty and to stop the accrual of a penalty. In addition, the county court may abate this penalty if good cause is shown for failure to file.

Annotations

Delay caused by litigation does not excuse county judge from assessing tax as of date of death. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).
Delay caused by litigation does not furnish basis for refusal to charge interest. State ex rel. Nebraska State Bar Assn. v. Richards, 165 Neb. 80, 84 N.W.2d 136 (1957).
Interest is required on inheritance tax unless paid within one year, notwithstanding pendency of appeal. In re Fort's Estate, 117 Neb. 854, 223 N.W. 633 (1929).
Where legatees neglect to pay tax within prescribed time, interest runs from date of death. In re Estate of Sanford, 90 Neb. 410, 133 N.W. 870 (1911).

Any administrator, executor or trustee having any charge or trust in legacies or property for distribution subject to said tax, shall deduct the tax therefrom, or if the legacy or property be not money, he shall collect the tax thereon upon the appraised value thereof from the legatee or person entitled to such property. He shall not deliver or be compelled to deliver any specific legacy or property subject to tax to any person until he shall have collected the tax thereon.

Annotations

Where a will directs that inheritance taxes be paid out of the residuary estate, but there is no residuary estate or the residuary estate is insufficient to pay the inheritance taxes, the direction in the will fails, and the default statutory rule placing the burden of inheritance taxes on the individual beneficiaries receiving the property applies. In re Estate of Larson, 311 Neb. 352, 972 N.W.2d 891 (2022).
Executors and administrators are required to deduct the inheritance tax from any property distributed or to collect the tax from the one who receives it. Nielsen v. Sidner, 191 Neb. 324, 215 N.W.2d 86 (1974).
Inheritance tax is a direct charge against the res. In re Estate of Sautter, 142 Neb. 42, 5 N.W.2d 263 (1942).

Whenever any legacy shall be charged upon or payable out of real estate, the heir or devisee before paying the same shall deduct the tax therefrom and pay the same to the executor, administrator or trustee. The tax shall remain a charge upon the real estate until paid, and the payment thereof shall be enforced by the executor, administrator or trustee in the same manner that the payment of the legacies might be enforced. If, however, the legacy be given in money to any person for a limited period, he shall retain the tax upon the whole amount, but, if it be not in money, he shall make application to the court having jurisdiction of his account to make apportionment, if the case requires it, of the sum to be paid into his hands by such legatees, and for such further order relative thereto as the case may require.

All executors, administrators and trustees shall have full power to sell so much of the property of the decedent as will enable them to pay the tax, in the same manner as they may be enabled to do by law for the payment of debts of their testators and intestates, and the amount of the tax shall be paid as directed by section 77-2014.

Annotations

Inheritance tax is a direct charge against the res. In re Estate of Sautter, 142 Neb. 42, 5 N.W.2d 263 (1942).

(1) Every sum of money retained by an executor, administrator, or trustee, or paid into his or her hands for any tax on any property, shall be paid by him or her within thirty days thereafter to the county treasurer of the proper county, and the county treasurer shall give, and every executor, administrator, or trustee shall take a receipt from him or her of such payments.

(2)(a) For purposes of this section, proper county shall mean the county of the decedent's residence, except (i) when the decedent had an interest in real property located in a county other than his or her residence at the time of the death of the decedent, the words proper county shall mean the county in which the real property is situated, or (ii) when the decedent had an interest in personal property subject to being listed and assessed for personal property taxation at the time of the death of the decedent, the words proper county shall mean the county where the property is listed and assessed.

(b) When the decedent is a nonresident, proper county shall mean the county provided in subdivisions (2)(a)(i) and (2)(a)(ii) of this section and, as to any other property which may be subject to Nebraska inheritance taxation, the county where such property is located.

(3) The total inheritance tax assessed against the estate shall be apportioned among the counties in the ratio that the value of the gross property subject to tax and not subject to tax under sections 77-2004, 77-2006, and 77-2007.04 located in each county bears to the gross value of all property subject to tax and not subject to tax under sections 77-2004, 77-2006, and 77-2007.04.

(4) Questions that may arise as to the proper place to list and assess such personal property for the purposes of sections 77-2001 to 77-2037 shall be determined pursuant to procedure set forth in sections 77-2018.01 to 77-2027.

Annotations

Inheritance tax is a direct charge against the res. In re Estate of Sautter, 142 Neb. 42, 5 N.W.2d 263 (1942).

(1)(a) Each petitioner in a proceeding to determine inheritance tax shall, upon the entry of an order determining inheritance tax, if any, submit a report regarding inheritance taxes to the county treasurer of each county in which inheritance tax is owed. If such reported inheritance taxes are changed or amended, the petitioner shall submit an amended report regarding such changed or amended inheritance taxes to the county treasurer of each county in which the inheritance taxes were changed or amended. No inheritance tax may be paid or refunded before the report or amended report, if required, is submitted. In the event of noncompliance by the petitioner, the county treasurer or county attorney of the county in which inheritance tax is owed may complete the form in place of the petitioner.

(b) Until June 30, 2024, the report or amended report shall be submitted on a form prescribed by the Department of Revenue and shall include the following information:

(i) The amount of inheritance tax revenue generated under section 77-2004 and the number of persons receiving property that was subject to tax under section 77-2004 and on which inheritance tax was assessed;

(ii) The amount of inheritance tax revenue generated under section 77-2005 and the number of persons receiving property that was subject to tax under section 77-2005 and on which inheritance tax was assessed;

(iii) The amount of inheritance tax revenue generated under section 77-2006 and the number of persons receiving property that was subject to tax under section 77-2006 and on which inheritance tax was assessed; and

(iv) The number of persons who do not reside in this state and who received any property that was subject to tax under section 77-2004, 77-2005, or 77-2006 and on which inheritance tax was assessed.

(c) Beginning July 1, 2024, the report or amended report shall be submitted on a form prescribed by the Department of Revenue and shall include the following information:

(i) The amount of inheritance tax paid under section 77-2004 and the number of persons receiving property that was subject to tax under section 77-2004 and on which inheritance tax was assessed;

(ii) The amount of inheritance tax paid under section 77-2005 and the number of persons receiving property that was subject to tax under section 77-2005 and on which inheritance tax was assessed;

(iii) The amount of inheritance tax paid under section 77-2006 and the number of persons receiving property that was subject to tax under section 77-2006 and on which inheritance tax was assessed; and

(iv) The number of persons who do not reside in this state and who received any property that was subject to tax under section 77-2004, 77-2005, or 77-2006 and on which inheritance tax was assessed.

(2)(a) The county treasurer of each county shall compile and submit a report regarding inheritance taxes generated from January 1, 2023, through June 30, 2023, to the Department of Revenue on or before August 1, 2023. The county treasurer of each county shall compile and submit a report regarding annual inheritance taxes generated from July 1, 2023, through June 30, 2024, to the Department of Revenue on or before August 1, 2024. Beginning July 1, 2024, the county treasurer of each county shall compile and submit a report regarding annual inheritance taxes paid from July 1 of each year through June 30 of the next year, to the Department of Revenue on or before August 1, 2025, and on or before August 1 of each year thereafter.

(b) Until June 30, 2024, the reports shall be submitted on a form prescribed by the Department of Revenue and shall include the following information:

(iv) The number of persons who do not reside in this state and who received any property that was subject to tax under section 77-2004, 77-2005, or 77-2006 and on which inheritance tax was assessed.

(c) Beginning July 1, 2024, the reports shall be submitted on a form prescribed by the Department of Revenue and shall include the following information:

(i) The amount of inheritance tax paid under section 77-2004 and the number of persons receiving property that was subject to tax under section 77-2004 and on which inheritance tax was assessed;

(ii) The amount of inheritance tax paid under section 77-2005 and the number of persons receiving property that was subject to tax under section 77-2005 and on which inheritance tax was assessed;

(iv) The number of persons who do not reside in this state and who received any property that was subject to tax under section 77-2004, 77-2005, or 77-2006 and on which inheritance tax was assessed.

(3) On or before September 1, 2023, and on or before September 1 of each year thereafter, the Department of Revenue shall compile and aggregate such treasurer reports received from each county and make each county report and a statewide aggregate of such county reports available to the public on the Department of Revenue's website.

Whenever any foreign executors or administrators shall assign or transfer any stocks or loans in this state standing in the name of the decedent or in trust for a decedent which shall be liable to inheritance tax, the tax shall be paid to the treasury or treasurer of the proper county on the transfer thereof. If not paid by the foreign executor or administrator, the corporation making such transfer shall become liable to pay the tax where the corporation has knowledge before the transfer that the stocks or loans are liable for such tax.

When any amount of inheritance tax shall have been paid erroneously to the county treasurer, he shall, upon a finding by the court and an order rendered to him of the erroneous payment, refund and pay to the executor, administrator or trustee, person or persons who have paid any such tax in error the amount of such tax so paid. All applications for the repayment of the tax shall be made to the county court within two years of the date of payment. The county court shall hear all evidence relevant to its finding whether or not any amount of inheritance tax has been erroneously paid and if any refund of such payment is due. The court shall notify the county treasurer of its final determination.

Annotations

To avoid payment of interest on tax when amount is in dispute, personal representative can pay assessed amount and recover excess back, if any, within two years. In re Fort's Estate, 117 Neb. 854, 223 N.W. 633 (1929).
Above section governs entirely procedure by which inheritance tax erroneously paid is recovered. In re Woolsey's Estate, 113 Neb. 218, 202 N.W. 630 (1925).
Court will not enjoin collection of taxes as there is an adequate remedy at law. Smith v. Douglas County, 242 F. 894 (8th Cir. 1917).

(1) The inheritance tax, if any, imposed under sections 77-2001 to 77-2037 may be determined either (a) in any proceedings brought under the provisions of Chapter 30, article 24 or 25, or (b) in a proceeding instituted for the sole purpose of determining such tax.

(2) Proceedings for determination of the tax may be initiated either (a) by order of the county court before which any proceeding is pending, (b) by application of the personal representative, (c) by application of the county attorney, or (d) by application of any person having a legal interest in the property involved in the determination of the tax.

Annotations

The liability of an estate for inheritance tax may be determined upon petition of executrix with allegations and proof in this case. Reller v. McArthur, 187 Neb. 313, 189 N.W.2d 468 (1971).
Application for determination of tax may be made by party having legal interest in estate. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).
Proceedings can be initiated by application of executor. State ex rel. Nebraska State Bar Assn. v. Richards, 165 Neb. 80, 84 N.W.2d 136 (1957).

(1) In the absence of any proceeding brought under Chapter 30, article 24 or 25, in this state, an independent proceeding for the sole purpose of determining the tax may be instituted in the county court of the county where the property or any part thereof which might be subject to tax is situated.

(2) Upon the filing of a petition to initiate such an independent proceeding, the county court shall order the petition set for hearing, not less than two nor more than four weeks after the date of filing the petition, and shall cause notice thereof to be given to all persons interested in the estate of the deceased and the property described in the petition, except as provided in subsections (4) and (5) of this section, in the manner provided for in subsection (3) of this section.

(3) The notice, provided for by subsection (2) of this section, shall be given by one publication in a legal newspaper of the county or, in the absence of such legal newspaper, then in a legal newspaper of some adjoining county of general circulation in the county. In addition to such publication of notice, personal service of notice of the hearing shall be had upon the county attorney of each county in which the property described in the petition is located, at least one week prior to the hearing.

(4) If it appears to the county court, upon the filing of the petition, by any person other than the county attorney, that no assessment of inheritance tax could result, it shall forthwith enter thereon an order directing the county attorney to show cause, within one week from the service thereof, why determination should not be made that no inheritance tax is due on account of the property described in the petition and the potential lien thereof on such property extinguished. Upon service of such order to show cause and failure of such showing by the county attorney, notice of such hearing by publication shall be dispensed with, and the petitioner shall be entitled without delay to a determination of no tax due on account of the property described in the petition, and any potential lien shall be extinguished.

(5) If it appears to the county court that (a) the county attorney of each county in which the property described in the petition is located has executed a waiver of notice upon him or her to show cause, or of the time and place of hearing, and has entered a voluntary appearance in such proceeding in behalf of the county and the State of Nebraska, and (b) either (i) all persons against whom an inheritance tax may be assessed are either a petitioner or have executed a waiver of notice upon them to show cause, or of the time and place of hearing, and have entered a voluntary appearance, or (ii) a party to the proceeding has agreed to pay to the proper counties the full inheritance tax so determined, the court may dispense with the notice provided for in subsections (2) and (3) of this section and proceed without delay to make a determination of inheritance tax, if any, due on account of the property described in the petition.

(6) If a petition is filed to initiate an independent proceeding under this section and the decedent was fifty-five years of age or older or resided in a medical institution as defined in subsection (1) of section 68-919, notice of the filing of such petition shall be provided to the Department of Health and Human Services with the decedent's social security number and, if the decedent was predeceased by a spouse, the name and social security number of such spouse. A certificate of the providing of the notice to the department shall be filed in the independent proceeding by an attorney for the petitioner or, if there is no attorney, by the petitioner, prior to the entry of an order pursuant to this section. The notice shall be provided to the department in a delivery manner and at an address designated by the department, which manner may include email. The department shall post the acceptable manner of delivering notice on its website. Any notice that fails to conform with such manner is void.

Annotations

Published notice is not a prerequisite of a county court's subject matter jurisdiction of an independent proceeding for the sole purpose of determining Nebraska inheritance tax; rather, such jurisdiction is invoked by the filing of a petition to initiate the proceeding. In re Estate of Marsh, 307 Neb. 893, 951 N.W.2d 486 (2020).
The county court has subject matter jurisdiction of an independent proceeding brought for the sole purpose of determining Nebraska inheritance tax. In re Estate of Marsh, 307 Neb. 893, 951 N.W.2d 486 (2020).
Although subsection (5) of this section states that the court may dispense with the notice required under subsections (2) and (3), the court is ultimately responsible for determining the inheritance tax. In re Estate of Chambers, 27 Neb. App. 398, 932 N.W.2d 343 (2019).

In all matters involving the determination of inheritance tax, notice served upon the county attorney shall constitute notice to the county and the State of Nebraska. It shall be the duty of the county attorney to represent the county and the State of Nebraska in such matters as its attorney. In so representing the county and the State of Nebraska, the county attorney is authorized, in addition to such other powers as he normally may exercise as attorney for the county, to enter into and bind the county and the State of Nebraska by stipulation as to any facts which could be presented by evidence to either the inheritance tax appraiser or the county court, and to waive service of notices upon him to show cause or of the time and place of hearing, and to enter a voluntary appearance in such proceeding, in behalf of the county and the State of Nebraska.

Annotations

County attorney has the duty to represent state in determination of inheritance taxes. State ex rel. Nebraska State Bar Assn. v. Richards, 165 Neb. 80, 84 N.W.2d 136 (1957).
This section, while authorizing the county attorney to stipulate to facts regarding the determination of inheritance tax which could be presented by evidence to the county court, does not require the court to accept the stipulated facts. In re Estate of Chambers, 27 Neb. App. 398, 932 N.W.2d 343 (2019).

In all proceedings for the determination of inheritance tax, the following deductions from the value of the property subject to Nebraska inheritance taxation shall be allowed to the extent paid from, chargeable to, paid, payable, or expected to become payable with respect to property subject to Nebraska inheritance taxation:

(1) The cost of the funeral of the decedent, including costs for interment and gravesite marker;

(2) All expenses of administration which accrue as a result of the death of the decedent, including, but not limited to, attorney's fees, court costs, and expenses concerning property not subject to probate, and expenses related to taking possession or control of estate assets and the management, protection, and preservation of estate assets, including, but not limited to, expenses related to the sale of estate assets, but not expenses related to the day-to-day operation and continuation of business interests which have not accrued as a result of the death of the decedent;

(3) All expenses of the last illness of the decedent which were incurred within six months of the death of the decedent;

(4) All other debts upon which the decedent was liable for payment at the date of his or her death and which have been paid; and

(5) Any federal estate tax paid, payable, or expected to become payable, after deduction of all applicable credits, which is attributable to property subject to Nebraska inheritance taxation.

Notwithstanding sections 77-2001 to 77-2039, the court shall have the authority, upon the written application of any of the parties subject to the tax imposed under such sections, to determine a final inheritance tax on any property devised, bequeathed, or otherwise transferred, based upon the probabilities at the time of the decedent's death rather than taxing the property at the rates specified in such sections.

If the decedent had received property from another person who died within five years prior to the death of the decedent upon which Nebraska inheritance tax was paid because of the death of the prior decedent, such tax so paid shall be a credit against the amount of inheritance tax, if any, assessed against the recipients of property from the estate of the decedent. Each recipient shall receive a prorated credit based upon such recipient's proportionate share of the total property of the decedent subject to Nebraska inheritance tax.

(1) Any person subject to the tax imposed by sections 77-2001 to 77-2037 may, prior to the final determination of the inheritance tax, make a tentative payment of the tax in order to avoid the accrual of interest or penalty on such tax. Any person who desires to pay such tentative inheritance tax shall make a written application to the county court for an order allowing the payment of a sum specified in such application, prior to the final determination of the inheritance tax due.

(2) If the county attorney shall not consent to the amount requested in the application by entering his or her voluntary appearance and waiver of notice, he or she shall within seven days of the filing of the application show in writing what sum he or she requests for the purpose of the prepayment. The county court shall issue an order allowing a tentative payment of the tax in such amount as the court shall specify.

(3) The county treasurer shall receive all taxes paid pursuant to this section but shall not be required to invest any tentative tax payment made for the benefit of the estate nor shall the county treasurer be required to pay interest on any refund claim for the period he or she holds the tentative tax payment.

(4) The tentative tax payment allowed in this section shall apply to both probate and nonprobate estates. The tentative tax payment shall not be a final order and may be amended, altered, or modified by subsequent order of the court.

In order to fix the value of property subject to the payment of the inheritance tax, the county judge may appoint a clerk magistrate or some other competent person, or the clerk magistrate may appoint a competent person, as appraiser as often as or whenever occasion may require, except that when real estate is to be appraised by a competent person other than a county judge or a clerk magistrate, the county judge or clerk magistrate shall appoint a credentialed real property appraiser, but if the county judge or clerk magistrate finds that no credentialed real property appraiser is a disinterested freeholder of the county, some other competent person may be appointed.

Annotations

County court is not bound by report made by appraiser but may take further evidence and enter order determining tax. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).

It shall be the duty of an appraiser appointed under section 77-2019 forthwith to give such notice by mail or personally to all interested persons as the court may by order direct, of the time and place he will appraise such property. At such time and place he shall appraise the property at the fair market value of the same, and for that purpose the appraiser is authorized by leave of the court to issue subpoenas and to compel the attendance of witnesses before him, and to take the evidence of such witnesses under oath concerning such property, and the value thereof. He shall make a report thereof and of such value in writing to the court with the depositions of the witnesses and such other facts relating thereto as the court may by order require, to be filed with the records of the county court. Any person interested may file objections to such report within five days after the report is filed with the court. The judge of the county court shall examine the appraiser's report and any objections thereto, and may, at his discretion, take further evidence and shall enter an order fixing the proper appraisal of the property.

Annotations

Failure to file objection to appraiser's report within five days does not preclude appeal from determination of tax. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).
Property for purpose of tax should be valued at amount of money which it would produce if offered and sold for cash at time of death of decedent. In re Fort's Estate, 117 Neb. 854, 223 N.W. 633 (1929); In re Woolsey's Estate, 109 Neb. 138, 190 N.W. 215 (1922).

Instead of appointing an appraiser, the county judge may by order fix a day and give notice to all interested parties and at such time appraise the property at the fair market value of the same.

Annotations

County court is not bound by report made by appraiser but may take further evidence and enter order determining tax. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).
County court can fix values without appointing special appraisers. State ex rel. Nebraska State Bar Assn. v. Richards, 165 Neb. 80, 84 N.W.2d 136 (1957).
County judge may act as appraiser. County of Holt v. Gallagher, 156 Neb. 457, 56 N.W.2d 621 (1953).

When the value of the property has been fixed, as provided in section 77-2020 or 77-2021, the county judge shall determine and assess the tax to which the same is liable.

Annotations

County court is not bound by report made by appraiser but may take further evidence and enter order determining tax. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).
County court can determine tax that is owing. State ex rel. Nebraska State Bar Assn. v. Richards, 165 Neb. 80, 84 N.W.2d 136 (1957).

An appeal may be taken from the determination of the tax due made by the county court to the Court of Appeals in the same manner as an appeal from district court to the Court of Appeals.

An appeal may be taken by any party and may also be taken by any person against whom the final judgment or final order may be made or who may be affected thereby.

Annotations

Appeal is taken from determination of tax due and not from the appraisement or assessment. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).
County has right of appeal from determination of tax. State ex rel. Nebraska State Bar Assn. v. Richards, 165 Neb. 80, 84 N.W.2d 136 (1957).
Beneficiaries obtaining substantial reduction in inheritance tax on appeal to district court are not liable for costs in district court. In re Fort's Estate, 117 Neb. 854, 223 N.W. 633 (1929).
County has right of appeal for alleged inadequacy of assessment of inheritance tax. Kearney County v. Hapeman, 102 Neb. 550, 167 N.W. 792 (1918).

The appraisers shall be paid a reasonable fee to be fixed by the county judge, together with mileage at the rate provided in section 81-1176 for state employees. Witnesses shall be allowed the sum of ten dollars per day for every day's attendance at an appraisal hearing, together with mileage at the rate provided in section 81-1176 for state employees. The officer serving process under sections 77-2001 to 77-2037 shall receive the same fees as are now provided by law for similar services with mileage to be computed at the rate provided in section 33-117 for county sheriffs. When it is determined that an inheritance tax is due, all costs made or incurred in the determination and assessment of inheritance tax, including appraiser's fees, shall be charged to the estate of the decedent.

If it shall be made to appear to the county judge in either probate proceedings or an independent proceeding for the determination of such tax that an estate is not subject to such inheritance tax, the county judge may so determine, and such finding and order shall be made a part of the final decree in said estate or proceeding.

Any appraiser appointed under the authority and by virtue of section 77-2019 who shall take any fee or reward from any executor, administrator, trustee, legatee, next of kin or heir of any decedent, or from any person or corporation liable to pay such tax or any portion thereof, shall be guilty of a Class IV misdemeanor, and in addition thereto the county judge shall dismiss him from such service.

The county court in the county in which the real property is situated of a decedent who was not a resident of the state, or in the county of which the deceased was a resident at the time of his death, shall have jurisdiction to hear and determine all questions in relation to all taxes arising under sections 77-2001 to 77-2037. If a court finds that in the interest of justice a proceeding or a file should be located in another county court of this state, the court making the finding may transfer the proceeding or file to the other court.

Annotations

County court may determine taxes due upon the clear market value of the beneficial interest taken by the taxpayer. County of Keith v. Triska, 168 Neb. 1, 95 N.W.2d 350 (1959).
County court has jurisdiction to assess tax on beneficiaries. State ex rel. Nebraska State Bar Assn. v. Richards, 165 Neb. 80, 84 N.W.2d 136 (1957).
County court has exclusive original jurisdiction over fixing, determining and assessing inheritance taxes. In re Estate of Sautter, 142 Neb. 42, 5 N.W.2d 263 (1942).
County court, on appeal from order of county judge determining value of estate from appraiser's report, is vested with complete, exclusive jurisdiction in the first instance to determine all questions in relation to inheritance taxes. In re Estate of Piel, 141 Neb. 783, 4 N.W.2d 875 (1942).

If it shall appear to the county court that any tax accruing under sections 77-2001 to 77-2037 has not been paid according to law, after a determination thereof has been made in either probate proceedings or an independent proceeding for determination of such tax, it shall issue a summons commanding the persons or corporations liable to pay such tax or interested in such property to appear before the court on a certain day, not more than three months after the date of such summons, to show cause why such tax should not be paid. After a hearing, pursuant to this section, the court may proceed to a judgment against any person liable for the inheritance tax and such judgment shall be a lien against any person adjudged liable to pay such tax. The county attorney shall proceed to levy an execution of such lien before the county court and such court may issue an order for the levy and execution against the person adjudged liable.

Whenever the treasurer of any county shall have reason to believe that any tax under sections 77-2001 to 77-2037 is due and unpaid after such taxes have been determined and assessed or after the refusal or neglect of the person interested in the property liable to pay said tax to pay the same, he shall notify the county attorney of the proper county in writing every three months of such refusal to pay the tax. The county attorney so notified, if he has cause to believe a tax is due and unpaid, shall prosecute the proceeding in the county court in the proper county, as provided in section 77-2028 for the enforcement and collection of this tax.

The county judge and county clerk of each county shall annually make a statement in writing to the county attorney of the county, of the party from which or the party from whom they have reason to believe a tax under sections 77-2001 to 77-2037 is due and unpaid.

All inheritance tax money received or collected by each county shall be credited by resolution of the county board in whole or in part either to the county general fund or to any other fund of the county selected by the county board.

Annotations

Failure to credit inheritance tax money to general fund before drawing warrant did not make payment void. Thiles v. County Board of Sarpy County, 189 Neb. 1, 200 N.W.2d 13 (1972).

Regardless of any defect in the proceedings in which such inheritance tax was determined, or the jurisdiction of the court to make such determination, the lien of the inheritance tax shall cease upon the first to occur of: (1) Ten years from the date of death of a decedent and no action shall be maintained for the determination, assessment or collection of such tax, unless a determination of the amount of such tax by the court having jurisdiction thereof shall have been made within such ten-year period, in which case such lien and the right to maintain any action for the assessment or collection of any tax shall cease five years after such determination or upon payment of such tax, whichever first occurs; (2) the payment of the amount of inheritance tax finally determined by the county court to be due with respect to property described in such proceedings; or (3) the release or discharge of any lien pursuant to section 77-2039.

Annotations

This statute provides, inter alia, that an inheritance tax lien ceases 10 years from the date of death if no proceeding is started within that 10-year period. It does not relate to the inheritance tax liability of personal representatives or recipients of property. In re Estate of Reed, 271 Neb. 653, 715 N.W.2d 496 (2006).

Notwithstanding the provisions of Chapter 77, article 20, the decedent's will may provide direction for the apportionment of the taxes assessed upon any of the decedent's property subject to Nebraska inheritance tax or any written instrument executed inter vivos by the decedent may provide direction for the apportionment of the taxes assessed upon any property subject to Nebraska inheritance tax for the property dealt with in such inter vivos instrument.

Annotations

The language in a trust clearly showed that the settlor wished to shift the burden of inheritance tax from the beneficiaries where the trust instructed the trustee to "pay from this trust all inheritance and estate taxes," whether on trust property or not, and the next subpart of the trust directed trustee to pay expenses and debts. In re Hessler Living Trust, 316 Neb. 600, 5 N.W.3d 723 (2024).

(1) Any county court may issue an order discharging any or all of the property subject to any inheritance tax, Nebraska estate tax, or generation-skipping transfer tax lien.

(2) The county court may prescribe the terms and conditions upon which any inheritance tax, estate tax, or generation-skipping transfer tax lien shall be released or discharged.

(3) Any person who desires a release or discharge of any inheritance tax, estate tax, or generation-skipping transfer tax lien shall make a written application to the county court. If the county attorney shall not consent to the release or discharge of the lien as requested in the application by entering his or her voluntary appearance and waiver of notice, he or she shall within seven days of the filing of such application show in writing why such release or discharge should not be granted or shall specify the terms and conditions upon which such release or discharge should be allowed.

Annotations

Section 77-2003 provides that personal representatives and recipients of property are liable for the payment of inheritance tax on transfers upon death and that there is a lien on the real property subject to the tax until it is paid or terminated by this section. In re Estate of Reed, 271 Neb. 653, 715 N.W.2d 496 (2006).

Sections 77-2002 to 77-2004 and 77-2102 shall become operative on December 31, 1982, and shall apply to all property which passes from a decedent dying after such date. Sections 77-2001, 77-2032, and 77-2106 shall become operative on July 17, 1982. The changes made in sections 77-2004 to 77-2006 by Laws 2007, LB 502, apply to all property which passes from a decedent dying on or after January 1, 2008. The changes made to section 77-2010 by Laws 2007, LB 502, apply to decedents dying on or after January 1, 2008.