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Nebraska Living Trust Forms – Irrevocable & Revocable

The Nebraska living trust is legal document used to avoid the litigation costs and time involved in the probate of your estate when you become deceased or are incapacitated. After creating a living trust, in order to avoid probate for your assets, the trust should be funded by transferring all desired assets to the trust. Because Nebraska uses the Uniform Probate Code, which simplifies the probate process, creating a living trust solely to avoid probate may not be as useful in this State. Due to this, it may be more pertinent to create an Irrevocable Living Trust, through which you will have the additional benefits of protecting your estate from creditors and minimizing estate taxes.

Laws – § 30-3801 to § 30-38,110 (Nebraska Uniform Trust Code)

Registration – As per § 30-3816, the Trustee has the duty to register a trust within Nebraska by filing with the Local County Court.

Will (Last Will and Testament) – Even if you create a living trust, a “pour over will” should be created in order to include any property which has not been transferred to your trust.

Types

Irrevocable – A living trust that transfers complete ownership of all assets to the trust. This type of trust cannot be changed or revoked once it has been created. Because ownership is transferred immediately, estate taxes are lessened and the estate is protected from creditors, litigation, and probate.

Revocable – A living trust in which the Grantor can maintain complete control of their assets as the Trustee. This type of trust can be altered or revoked by the Trustee. With this option, the main advantages are simply that probate is avoided and the distribution of assets is not made public.

Individual Roles

There are four (4) main roles in a living trust:

Grantor – The person who creates the living trust.

Trustee – The person in charge of the trust. During the Grantor’s lifetime, they can appoint themselves as Trustee.

Successor Trustee – This person becomes the Trustee and will distribute the trust estate to Beneficiaries at such a time that the Grantor becomes deceased or incapacitated.

Beneficiaries – Individuals who are designated as the recipients of the estate as per detailed within the living trust.

How to Make a Living Trust in Nebraska

In accordance with § 30-3828, the Grantor (Settlor) must be of capacity to create a living trust and express an intention to do so. The document must list all included assets and appoint a Trustee and Beneficiaries. The Grantor cannot appoint themselves as a sole trustee and sole Beneficiary. In order for the trust to be effective, all property and assets listed within the instrument must be transferred into the trust’s name. Once the document has been drafted, it should be signed in the presence of a Notary Public.

Motor Vehicles – In order for a vehicle to be placed in a trust, an Application for Certificate of Title will need to be filled out and presented to the County Official assigned to the vehicle’s location. A bill of sale is also required.

Real Estate – To transfer real estate to a trust, the Grantor will need to fill out a Nebraska Deed transferring ownership, have it notarized, and submit it to their county recorder’s office.

Financial Accounts – For the Grantor to transfer their various financial accounts over to their trust, they will need to show their account manager the living trust document and transfer all their accounts and investments into the trust’s name.

Do I Need a Living Trust

In Nebraska, successors can transfer property to their name by using a small estate affidavit, as long as the value of all of the estate is less than $50,000 (in accordance with § 30-24,129). In this way, the Beneficiary can avoid probate much the same way as with a living trust. For this reason, if an estate is valued at $50,000 or less, it may not be worthwhile to invest in a living trust. However, if your estate is larger, creating a living trust enables you to protect your estate and determine how it will be divided, as well as making arrangements as to what happens to your estate should you become incapacitated.

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