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).