Big Change for Small Estates: Nebraska Increases the Real Property Cap for Small Estate Affidavits

If you’ve ever been involved in handling a loved one’s estate after their death, you know that the probate process can be slow, expensive, and emotionally draining. But Nebraska offers a streamlined option for certain estates that fall below a specific value threshold: the small estate affidavit.

Under Nebraska Revised Statutes § 30-24,129, individuals who are entitled to inherit real property (like land or a house) from someone who has died can, under the right conditions, skip the formal probate process altogether. (Note: Nebraska also has a separate small estate affidavit process for personal property, which also recently saw its cap increase.) Instead, they can use a document called a small estate affidavit to claim the decedent’s real property.

Here’s how it works: If at least 30 days have passed since the decedent’s death, and the property in question is located in Nebraska, an heir can file a properly executed affidavit with the register of deeds in the county where the real estate is located. That affidavit must describe the real property and state that the individual is entitled to it as a successor. Once filed, the affidavit functions as legal notice that ownership has passed—no court hearing necessary.

What’s Changed?

Up until recently, this tool was only available for estates where the assessed value of the real property, less any real estate taxes and interest due at the time of death, was $50,000 or less. But as of July 19, 2024, that cap has increased to $100,000. That change, passed by the Nebraska Legislature, opens up this option to many more families across the state, particularly those whose loved ones owned modest homes or parcels of land.

This is a significant update that reflects the reality of rising property values in Nebraska. What once might have required a full probate proceeding can now be resolved quickly and efficiently for more families.

Why This Matters

Probate can be necessary and helpful in many cases, especially when disputes arise or there are complex assets involved. But for straightforward, lower-value estates, it can feel like overkill. The small estate affidavit process is a way to honor simplicity where it’s appropriate. Increasing the property cap to $100,000 means:

• More people can access their inheritance faster

• Fewer families will have to bear the burden of legal costs

• Courts can focus on more complex probate matters

A Word of Caution

Using a small estate affidavit is not without responsibility. The person filing it is making a legal claim about their right to inherit, and that claim can be challenged if it turns out to be inaccurate. The affidavit must still meet all other statutory requirements, including:

• Stating that no application for appointment of a personal representative is pending or has been granted

• Explaining how the successor is entitled to the property (via intestate succession, will, family allowance, etc.)

• Stating that the successor has investigated for a subsequent will

• Confirming that no other person has a superior right to the property

• Declaring the relationship to the decedent and the value of the entire estate subject to probate

• Acknowledging that false statements may result in perjury charges

When a Small Estate Affidavit May Not Be Right

This process is not suitable in every situation. A small estate affidavit may not be appropriate if:

• There are disputes among heirs

• The estate has significant debts that require formal handling through probate

• There are questions about who the rightful heirs are

• The decedent had a complex or contested will

• The real property has substantial liens or complications beyond standard taxes

Final Thoughts

If you’re dealing with a loved one’s estate in Nebraska and the real property is valued under $100,000 (as assessed by the county minus real estate taxes and interest), this change could save you time, money, and stress.

Navigating estate administration can be complex, even with simplified procedures like the small estate affidavit. If you’re dealing with a loved one’s estate in Nebraska, especially with this new cap, consulting with an experienced estate planning attorney is essential. We can help you determine if a small estate affidavit is the right tool for your situation, ensure it’s properly executed, and guide you through the process to save you time, money, and stress. You can reach me directly at 402-259-0059 or by email at zach@zandersonlaw.com.

This change to Nebraska’s small estate affidavit law is a small but mighty shift in estate planning and probate practice—one that could make a big difference for a lot of people, especially in rural and lower-income communities where property values fall under this new threshold.