Transfer-on-Death (TOD) Deed in Nebraska (2025): Pros, Cons & Mistakes to Avoid
Sep 25
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Updated Sept. 25, 2025
What is a Nebraska TOD deed?
A Transfer-on-Death (TOD) deed lets a property owner name who gets Nebraska real estate at death without probate. It has no effect during the owner’s life; the owner keeps full control and can sell, mortgage, or revoke the deed at any time.
Ag note: If the land is agricultural, a TOD deed may also state who receives the growing crops; if it doesn’t, the crops typically pass to the estate.
Does a TOD deed avoid probate (and taxes)?
Probate: Yes—for that parcel—if the deed is executed and recorded correctly.
Taxes: No. Nebraska requires TOD deeds to warn that the property remains subject to inheritance tax; late payment can bring interest and penalties.
The 2025 rules you must follow (checklist)
Sign with two disinterested witnesses + notary.
The transferor and two or more disinterested witnesses must sign in front of a notary.
Record on time, in the proper county.
Record the deed within 30 days after signing, before death, with the register of deeds in the county where the land sits. An unrecorded/late-recorded deed WILL NOT WORK.
Include Nebraska’s required warnings.
Inheritance tax & interest/penalties
Possible beneficiary liability (Medicaid reimbursement; certain estate claims/allowances if the estate is short)
DHHS may require revocation to qualify for Medicaid
New after Sept. 3, 2025: an insurance-coverage warning (property insurance may lapse 30 days after death unless the beneficiary is added/gets coverage).
After death, file the transfer statement.
When the TOD transfer actually happens, file the real estate transfer statement (Form 521) at that time.
Who actually takes title—and when?
The beneficiary must survive the owner by 120 hours (unless your deed sets a different survival period).
Title passes subject to existing mortgages, liens, leases, and other interests on the date of death.
If the beneficiary later sells or borrows against the property, buyers/lenders take free of most estate claims—but not free of any inheritance-tax lien.
TOD deed vs. trust vs. joint tenancy (quick compare)
TOD deed: Simple, asset-specific, great for a single parcel. No management/control features for incapacity or minors.
Revocable living trust: Best for multiple parcels, privacy, step-by-step control, and coordinated distributions; avoids probate when properly funded.
Joint tenancy: Passes to the survivor automatically, but can create ownership and creditor issues and complicate fair distribution among kids.
Farm & rural scenarios to plan for
Multi-county recording: Each county needs a recorded TOD deed.
Water/NRD, CRP, and leases: Coordinate beneficiary changes with water rights, government programs, and leases to avoid post-death hiccups.
Entity ownership: TOD deeds move real estate. Interests in a farm LLC or partnership require different documents.
Top mistakes to avoid
Missing the 30-day recording window or recording in the wrong county.
Forgetting the statutory warnings (especially the new 2025 insurance notice).
Naming minors directly (use a trust).
Treating a TOD deed as a tax strategy (it’s not).
Not aligning with your inheritance-tax plan and cash flow (who pays what, and when).
How to execute and record a Nebraska TOD deed (step-by-step)
Draft the deed with the required Nebraska warnings and the exact legal description.
Sign before a notary with two disinterested witnesses present.
Record it within 30 days in the county where the land is.
Keep originals and proof of recording.
On death: the beneficiary records the needed death/transfer paperwork and files the transfer statement; coordinates inheritance-tax determination and pays any tax (or makes a tentative payment to stop interest).
FAQs
What is a Nebraska TOD deed, in one sentence?
A deed that names who gets your Nebraska real estate at death without probate, authorized by the Nebraska Uniform Real Property Transfer on Death Act.
What are the signing and recording rules?
Sign with two disinterested witnesses before a notary, then record within 30 days (and before death) with the county where the land is located.
Does a TOD deed avoid Nebraska inheritance tax? No—the deed must warn that the property remains subject to inheritance tax (with possible interest/penalties if late).
Do beneficiaries need to survive the owner?
Yes—120 hours (5 days), unless your deed says otherwise.
Are there any new additions for 2025 that I should include?
Yes—TOD deeds created after Sept. 3, 2025, must include an insurance-coverage warning (coverage may lapse ~30 days after death unless handled).
Bottom line / Next step
A TOD deed can be a valuable tool for a single parcel, but it’s not a one-size-fits-all estate plan—and it doesn’t avoid inheritance tax. If you own multiple tracts, have minors, or want more control, pair (or replace) TOD deeds with a revocable trust. If you’d like help choosing the right mix—or want a quick compliance check on an existing TOD—book a session and we’ll map it out.
