With the New $15M Federal Exemption, Do Nebraska Business Owners Still Need an Estate Plan?
If you’ve been following estate tax news over the last few years, you probably noticed a steady drumbeat of warnings about the exemption dropping in 2026. That countdown is officially over. With the passage of the One Big Beautiful Bill Act (P.L. 119-21) in July 2025, Congress removed the scheduled sunset and permanently set the federal estate and gift tax exemption at $15 million per person beginning January 1, 2026, adjusted annually for inflation. For most Nebraska business owners, that means the IRS is no longer the primary financial threat to a business transition.
But that doesn’t mean estate planning is suddenly optional. The federal change only eliminates one risk category. Nebraska still imposes inheritance tax at the county level. Probate in Nebraska is still public, often slow, and disruptive when business assets are involved. And if ownership and management roles aren’t clearly laid out, family members and business partners can be left in conflict or uncertainty during one of the most vulnerable moments in the company’s lifespan.
Now that the pressure around federal tax timing has eased, planning becomes less about beating a deadline and more about building a long-term structure that protects your business, keeps authority clear, and avoids unnecessary court involvement.
The “Cliff” Is Gone — but the State-Level Trap Isn’t
The $15 million federal exemption removes urgency for many families, but it doesn’t change Nebraska’s tax rules. Nebraska still applies inheritance tax based on the beneficiary’s relationship to you:
Class 1 (Close family): 1% on amounts over $100,000
Class 2 (Extended family): 11% on amounts over $40,000
Class 3 (Non-relatives): 15% on amounts over $25,000
This becomes especially relevant when business ownership passes to a key employee, a sibling who works in the company, or extended family who helped build it. Even if the business won’t owe federal estate tax, Nebraska inheritance tax may still be due immediately, whether the business has liquidity available or not. A properly drafted trust, paired with a buy-sell agreement and funding strategy, prevents the inheritance tax from forcing a rushed sale or putting beneficiaries at odds with business partners.
Probate Still Disrupts Business — Even With a High Exemption
A common misconception is that if a family won’t face federal estate tax, they no longer need a trust. In reality, probate and taxes are separate issues. If business assets are titled in your personal name when you pass away, they cannot be controlled or transferred until a Nebraska court appoints a personal representative. That delay may last weeks or longer.
While probate is pending:
Payroll and vendor payments may be delayed
Lenders may tighten oversight
Customers and employees may worry about stability
The company’s financial information becomes part of the public record
A fully funded revocable living trust avoids this by giving your chosen successor trustee immediate legal authority to manage business interests. For Nebraska business owners, a trust is less about tax avoidance and more about continuity, privacy, and operational stability.
The Hardest Question Now Isn’t “How Much Tax?” — It’s “Who Runs It?”
With federal tax pressure off the table for most business owners, succession planning becomes the central issue. A strong estate plan addresses practical questions such as who will run the business if you become incapacitated, whether the person who inherits ownership is the same person who will manage operations, and how the roles and responsibilities will be communicated.
This is also where documents need to match. Wills and trusts don’t automatically override operating agreements or shareholder agreements. In many cases, the business agreement controls ownership transfers, valuation, and buyout terms. If those provisions don’t match your estate plan, the business document usually wins. Alignment, not just drafting, is the key.
Do Business Owners Still Need Planning if They’re Under $15M?
Yes — just for different reasons than before. Today, most Nebraska-based planning focuses on:
Avoiding probate delays
Protecting confidentiality
Preventing conflict among heirs or partners
Ensuring liquidity to pay Nebraska inheritance tax
Preserving the business, contracts, and operations during transition
The result is that a trust-based plan is now primarily a tool for control and continuity, rather than a reaction to federal tax exposure.
FAQ: The Updated 2026 Rules for Nebraska Business Owners
Did the estate tax exemption drop to $7 million in 2026?
No. The One Big Beautiful Bill Act (P.L. 119-21) eliminated the sunset and permanently set the exemption at $15 million per person, indexed for inflation.
Does the new federal law change Nebraska inheritance tax?
No. Nebraska’s inheritance tax remains in effect and still depends on the beneficiary’s relationship to the decedent.
If I won’t owe federal estate tax, do I still need a trust?
Yes. For business owners, a trust is often the difference between smooth continuity and costly disruption. It ensures someone can take over immediately and keeps business matters out of probate.
Can my operating agreement override my will?
Yes — and this surprises many people. Business documents often control ownership transfers even if the will says something different.
Do I need to update my buy-sell agreement now?
If it was drafted before the federal law change, is unfunded, or doesn’t reflect current valuation or succession goals, it’s worth reviewing.
The New Reality: Planning Isn’t About the IRS — It’s About Stability
For Nebraska business owners, the removal of the federal deadline brings breathing room. But delaying planning because the urgency feels lower now creates risk — and risk shows up as probate delays, tax surprises, operational disruption, or strained family and business relationships.
Estate planning now isn’t about beating an expiration date. It’s about clarity, continuity, and protecting what you’ve built so it transitions the way you intend.