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.

Source:Laws 1931, c. 132, § 1, p. 371; C.S.Supp.,1941, § 77-2201; R.S.1943, § 77-2007; Laws 1947, c. 262, § 3, p. 852; Laws 1949, c. 241, § 1, p. 654; Laws 1951, c. 268, § 1, p. 902; Laws 1971, LB 981, § 1; Laws 1976, LB 585, § 7.

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).