Understanding Intestacy Laws in Nebraska: What Happens When You Die Without a Will

Updated June 30, 2025

When someone passes away without a valid will, they are said to have died “intestate.” In Nebraska, as in many states, intestate succession laws govern how an individual’s estate is distributed without a will. These laws outline the order in which heirs inherit and which assets they are entitled to receive. Understanding intestacy laws is essential for Nebraska residents as these laws determine how assets are allocated when no formal estate plan is in place. Here’s a detailed look at how intestacy laws work in Nebraska, who inherits, and what assets may be affected.

What Assets Are Subject to Intestacy in Nebraska?

Not all assets are subject to intestate succession laws. Nebraska’s intestacy laws apply only to assets typically going through probate. This generally includes:

• Individually Owned Property: Assets solely owned by the deceased that do not have a designated beneficiary.

• Real Estate: Property owned solely by the decedent, including family homes, farmland, or rental properties.

• Bank Accounts and Investments: Accounts without a beneficiary designation or joint owner.

Some assets pass outside of probate and therefore are not governed by intestacy laws, including:

• Jointly Owned Property: Property held in joint tenancy or tenancy by the entirety passes directly to the surviving co-owner.

• Life Insurance Policies: These pass directly to the named beneficiary, regardless of the intestacy process.

• Retirement Accounts: 401(k) plans, IRAs, and similar accounts transfer to named beneficiaries.

• Transfer on Death (TOD) and Payable on Death (POD) Accounts: These accounts go directly to the named beneficiary.

Who Inherits Under Nebraska’s Intestacy Laws?

Nebraska intestacy laws follow a priority order, typically giving precedence to close family members like spouses, children, and parents. Here’s a breakdown of who inherits based on the family relationships involved:

1. Surviving Spouse

The surviving spouse’s inheritance depends on whether the decedent had children and, if so, whether those children were also the spouse’s children.

• If the decedent has no surviving children or parents: The spouse inherits the entire estate.

• If the decedent has children only with the surviving spouse: The spouse inherits the entire estate, as Nebraska law assumes the spouse would manage these assets for the family.

• If the decedent has children with someone other than the surviving spouse: The spouse inherits half of the estate, while the decedent’s children inherit the other half.

• If the decedent has no children but has surviving parents: The spouse inherits the first $100,000 of the estate, plus half of the remaining estate, with the decedent’s parents inheriting the remaining half.

2. Children

Without a surviving spouse, the decedent’s children inherit the entire estate. If the decedent had children with the surviving spouse, those children would receive any remaining portion of the estate not allocated to the spouse (if applicable).

• Distribution Among Children: Nebraska follows a “per stirpes” distribution, meaning each family branch receives an equal share. For instance, if one of the decedent’s children predeceased them but left grandchildren, those grandchildren collectively inherit their parent’s share.

3. Parents

If the decedent leaves no surviving spouse or children, the estate is divided between the decedent’s surviving parents. If only one parent survives, they inherit the entire estate.

4. Siblings

Siblings inherit the estate if the decedent has no surviving spouse, children, or parents. As with children, intestate distribution is per stirpes, meaning if a sibling has passed away but left children, those nieces and nephews inherit the deceased sibling’s share.

5. Extended Relatives

If the decedent has no surviving spouse, children, parents, or siblings, the estate may pass to more distant relatives, including grandparents, aunts, uncles, cousins, or even great-grandparents. Nebraska’s intestacy laws specify the order of inheritance, moving through the family tree based on degrees of kinship.

6. Escheat to the State

If no family members can be identified, Nebraska’s intestacy laws dictate that the estate “escheats” to the state, meaning Nebraska becomes the final heir. This situation is rare, as most estates can locate eligible heirs.

Key Considerations in Nebraska’s Intestacy Laws

1. Stepchildren and Unadopted Children: Stepchildren and foster children not legally adopted by the decedent do not have inheritance rights under Nebraska intestacy laws. If you wish for stepchildren or foster children to inherit, it is crucial to establish a formal will.

2. Non-Marital Children: Children born outside of marriage have the same inheritance rights as children born within a marriage, provided paternity has been legally established.

3. Posthumous Children: Children conceived before the decedent’s death but born afterward retain inheritance rights under Nebraska intestate succession laws.

4. Adopted Children: Legally adopted children are treated as biological children under Nebraska’s intestacy laws and have the same rights to inherit as biological offspring.

5. Half-Siblings: In Nebraska, half-siblings inherit as full siblings. For example, if a decedent has a surviving half-sister from one parent, she is entitled to an equal share alongside full siblings.

Potential Complications with Intestate Succession

While Nebraska’s intestacy laws provide a basic framework for estate distribution, relying on these laws can sometimes lead to unintended consequences, especially for those with unique family situations or specific legacy wishes. Some potential complications include:

• Blended Families: Stepchildren and other non-biological family members may not inherit without a will, potentially excluding individuals who played significant roles in the decedent’s life.

• Tax Implications: Nebraska has an inheritance tax, and intestate succession could lead to a higher tax burden if assets are distributed according to default rules rather than strategic planning.

• Farm and Business Continuity: Intestate succession can complicate ownership transfers for farmers or business owners, potentially leading to the division of essential assets like land or equipment.

• Loss of Privacy: Probate is a public process, and when assets are distributed through intestate succession, the estate’s details become part of the public record, potentially leading to disputes or unwanted attention.

Benefits of Creating a Will in Nebraska

Relying on intestacy laws can leave many aspects of your estate to default rules, which may not align with your wishes. Creating a will can provide numerous advantages:

• Designating Specific Beneficiaries: A will lets you name exactly who should inherit each asset, preventing the unintended consequences of intestate succession.

• Naming a Guardian: For parents of minor children, a will allows you to designate a guardian, ensuring your children are cared for by someone you trust.

Conclusion: The Importance of Planning Ahead

While Nebraska’s intestacy laws provide a basic structure for distributing assets, they may not align with everyone’s wishes or family dynamics. By understanding these laws and the impact of intestacy, you can make informed decisions that protect your family’s future. Creating a will and engaging in comprehensive estate planning can ensure that your legacy is preserved and that your loved ones are provided for according to your wishes.

At Midwest Ag Law, we focus on helping Nebraska families navigate estate planning, probate, and succession matters. Contact us to learn more about how we can assist you in creating a personalized estate plan that aligns with your unique needs and protects your legacy.

Disclaimer: The information provided in this blog is for general informational purposes only and is not intended to be legal advice. Reading this blog does not establish an attorney-client relationship between you and Midwest Ag Law. You should not act upon any information in this blog without seeking professional legal counsel. Laws may change, and each situation is unique; therefore, consult an attorney for advice regarding your specific circumstances. Midwest Ag Law expressly disclaims any liability concerning actions taken or not taken based on the content of this blog.