What Happens to a Home in a Nebraska Trust After the Owner Dies?

A question I hear from clients all the time: “What happens to my house if I put it in a trust, and then I pass away?”

As with most legal questions — it depends a little on how the trust is set up. But here’s the core thing to know: trusts are designed to make life a LOT easier for your loved ones. If your home is properly placed in a Nebraska trust, the transition can be smooth — both for the property and for the people involved. And it avoids probate, which is a big win.

Let’s break it down.

The Role of the Trust

When you place your home into a Nebraska revocable living trust, you still stay in full control during your lifetime. You can live in the home, sell it, refinance it, change the trust — whatever you need to do. It remains flexible while you’re alive.

When you pass away, the trust generally becomes irrevocable — meaning no one can change the terms anymore (unless certain limited powers are built in, such as for a surviving spouse — but that’s a deeper conversation). At that point, the trust document dictates what happens next.

What Happens to the Home?

One of the biggest benefits of having your home in a trust: it does NOT go through probate. Probate is a court process that can be public, time-consuming, and expensive. A properly drafted and funded Nebraska trust allows the home to pass privately and directly under the trust terms.

Your successor trustee — the person you’ve named in your trust — steps in and takes legal control of the trust assets. For the home, that typically means:

• Securing the property (changing locks if needed, confirming insurance is current)

• Paying any outstanding bills tied to the home (mortgage, property taxes, utilities)

• Either transferring the home to a named beneficiary, OR

• Selling the home and distributing the proceeds to beneficiaries, depending on what the trust says to do

A Real-Life Example

Let me give you an example. A client of mine — we’ll call her Donna — passed away. Donna had wisely placed her home into a Nebraska trust years ago and named her son, Brian, as successor trustee.

The trust instructed that her home was to be sold after her passing, and the proceeds were to be split between Brian and Donna’s two grandchildren.

Because the home was titled in the trust, Brian didn’t have to open a probate case. He simply worked with a real estate agent to list and sell the property, paid off the small remaining mortgage, and distributed the net proceeds exactly as the trust directed. No court involvement, no probate delays, no public record of family assets.

Had the home not been in the trust, the family would have faced several months of probate court proceedings, court costs, and potentially more family stress — just to accomplish what Donna’s trust allowed Brian to handle in a matter of weeks.

What Happens to the Beneficiaries?

Your trust names your beneficiaries — the people or entities who will receive the home, or the value of the home if it’s sold.

If the trust says, “Give my home to my daughter,” your trustee will handle transferring the deed to her.

If the trust says, “Sell my home and split the proceeds among my children,” your trustee will handle the sale and distribute the proceeds accordingly.

In either case: no probate court is required. The trustee manages the process privately, under Nebraska trust law.

What Does the Trustee Have to Do?

The trustee has important legal duties under Nebraska law. In plain terms, they must:

• Act carefully, responsibly, and in the best interests of the trust and its beneficiaries (this is called fiduciary duty)

• Keep clear records

• Communicate regularly with the beneficiaries

• Follow the trust’s terms exactly as written

And yes — that fiduciary duty includes acting loyally and impartially when carrying out the trust’s instructions. If you’ve been named as a trustee and aren’t sure what that role entails — that’s a good time to talk to an estate planning attorney. We help trustees navigate this process all the time.

Why Good Planning Matters

Placing your home in a Nebraska trust is one of the smartest ways to ease the burden on your loved ones. It avoids probate, streamlines the transfer, and keeps your affairs private — unlike the public record created by a probate court proceeding.

But: it has to be done properly. If your home isn’t actually titled in the trust, or if the trust language is unclear, problems can still arise — which defeats the whole purpose.

If you’re unsure whether your home is correctly placed in your trust — or if you’ve been named as a trustee and want to make sure you’re handling things the right way — I’m happy to help.

You can reach me at 402-259-0059 or zach@zandersonlaw.com.

Estate planning doesn’t have to be complicated — but it does need to be done carefully. And that’s exactly what I’m here for.