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Nebraska Living Trust Form (Revocable)

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Nebraska Living Trust Form (Revocable)

Updated May 06, 2024

A Nebraska living trust is a legal document used to specify how the assets of an individual, known as the grantor, should be distributed after their death. With a living trust, the grantor may amend or revoke the trust at any time, retaining control over their assets during their lifetime. The grantor may designate a trustee or act as the trustee themselves.

Requirements (5)

  1. Competent: The grantor must have the capacity to create a trust.
  2. Intent: The grantor must indicate an intention to create the trust.
  3. Definite Beneficiary: Unless it is a charitable trust or one established for the care of an animal, the trust must have a definite beneficiary.
  4. Trustee’s Duties: The trustee must have duties to perform.
  5. Sole Trustee Cannot be the Sole Beneficiary: The same person cannot be the sole trustee as well as the sole beneficiary of the trust.[1]

Laws

Amending/Revoking – Unless the terms of the trust expressly state that it is irrevocable, the grantor may amend or revoke the trust.[4]

Bond Requirement – The trustee does not have to give a bond to secure the performance of their duties unless this is a requirement under the terms of the trust or they have been ordered to do so by the court.[5]

Certification of Trust – Instead of a copy of the trust instrument, the trustee may present a signed certification of trust to a person other than a beneficiary in order to establish the existence or terms of the trust.[6]

Co-Trustees – In most situations, co-trustees who are unable to reach a unanimous decision may act by majority decision. However, any co-trustee may act independently with regard to banking transactions involving trust assets.[7]

Contesting a Trust – A person initiating an action to contest a trust must do so within 120 days of being sent notice by the trustee of the trust’s existence or within a year of the grantor’s death, whichever is earlier.[8]

Costs Related to the Trust – The trustee must only incur costs that are reasonable, given the trust property and its intended purpose, in administering the trust.[9]

Jurisdiction – A trust created in another jurisdiction is valid in Nebraska if it was created in compliance with the laws of the jurisdiction in which the trust instrument was executed.[10]

Oral Trusts – The creation, amendment, or revocation of an oral trust may only be established by clear and convincing evidence.[11]

Pet Trusts – A trust created to provide for the care of one or more animals alive during the grantor’s lifetime is valid. The trust terminates upon the death of the last surviving animal being cared for.[12]

Signing Requirements – There is no state statute requiring a Nebraska living trust to be signed.

Spendthrift Provision – A spendthrift provision must restrain both the voluntary and involuntary transfer of a beneficiary’s interest in order to be valid.[13]

Trustee’s Compensation – If the terms of the trust do not otherwise specify the trustee’s compensation, the trustee is entitled to reasonable compensation under the circumstances.[14]

Trustee’s Duties – The trustee is required to administer the trust in good faith, in the sole interest of the beneficiaries, in alignment with the trust’s terms and purposes, and in accordance with state law.[15]

Trustee’s Powers – In addition to the powers granted by the terms of the trust, the trustee may collect, acquire, sell, exchange, partition, or otherwise change the character of the property held in trust.[16]

Sources

  1. § 30-3828(a)
  2. § 30-3816
  3. § 30-3817
  4. § 30-3854(a)
  5. § 30-3858(a)
  6. § 30-38,102(a)
  7. § 30-3859(a)
  8. § 30-3856(a)
  9. § 30-3870
  10. § 30-3829
  11. § 30-3833
  12. § 30-3834(a)
  13. § 30-3847(a)
  14. § 30-3864(a)
  15. § 30-3866
  16. § 30-3881(a)