Quick overview: After an estate’s taxes, creditor claims, administrative costs, and court-ordered expenses are paid, the personal representative (called an executor if named in a will, or an administrator if appointed by the court) must distribute the remaining assets to the decedent’s beneficiaries. If the decedent left a valid will, distribution follows the will. If there is no will, distribution follows Nebraska’s intestacy law. The personal representative normally must get court approval or file a final accounting before making final distributions.

Step-by-step process under Nebraska law

1. Appointment of the personal representative: The probate court confirms and issues letters testamentary or letters of administration that authorize the representative to act on behalf of the estate.
2. Gather and secure assets: The representative locates, secures, and values estate assets (bank accounts, real estate, investments, personal property). They typically open an estate bank account to keep funds separate from personal accounts.
3. Give notice to creditors and pay claims and expenses: Nebraska law requires notice to known creditors and often publication for unknown creditors. The representative files creditor claims and pays valid debts, final bills, funeral expenses, and administrative costs from estate funds.
4. Pay taxes: The representative files final income tax returns for the decedent and any required estate or fiduciary tax returns (federal forms such as Form 1040 and, if required, Form 706). They also pays any federal or state taxes owed. If taxes are uncertain, the representative may reserve funds until liabilities are fixed.
5. Prepare inventory and accounting: The representative prepares an inventory of estate assets and a proposed accounting showing receipts, disbursements, and remaining estate value. Nebraska courts routinely expect this documentation when closing an estate.
6. Petition the court for final distribution: The representative files a petition or motion asking the court to approve the final accounting and to distribute the remaining assets. The court reviews whether debts and taxes were properly handled and whether distributions are consistent with the will or intestacy law.
7. Obtain court order or written consent: The court issues a decree or order approving the accounting and directing distribution. In some small estate situations or where all beneficiaries consent in writing, formal court approval may be simplified under Nebraska procedures. See Nebraska Probate Code (Chapter 30) for procedural rules: Neb. Rev. Stat. Chapter 30 (Probate Code).
8. Distribute to children: Once authorized, the representative transfers funds or property to the decedent’s children according to the will’s terms or, if there is no will, according to Nebraska’s intestacy rules. If a child is a minor or incapacitated, the representative may need to place that child’s share in a guardianship or conservatorship account, or follow other statutory protections.
9. Close the estate: After distribution and court approval, the representative files a final report or discharge petition with the court to end the representative’s duties.

Who gets what when there is no will?

If the decedent died intestate (without a will), Nebraska’s intestacy rules determine who gets the estate and in what shares. Distribution depends on which relatives survive the decedent (spouse, children, parents, siblings). If the decedent is survived by children but not a spouse, the children typically inherit the estate. If there is a surviving spouse and children, shares may be split between spouse and children depending on the circumstances. For details on intestacy provisions and definitions, see the Nebraska Probate Code: Neb. Rev. Stat. Chapter 30.

Special situations to watch for

• Minor children: Courts require special handling for minors’ shares (guardian, conservatorship, blocked accounts, or structured distributions).
• Predeceased children and representation: If a child dies before the decedent, their children (the decedent’s grandchildren) may inherit by representation (subject to the will or intestacy rules).
• Disputes and will contests: If a beneficiary contests the will or a creditor disputes a claim, distributions may be delayed until the issue is resolved.
• Insufficient assets: If the estate is insolvent, Nebraska law provides an order of priority for paying creditors. Beneficiaries receive nothing until higher-priority debts are satisfied.

Taxes and final filings

The personal representative must file the decedent’s final income tax return and, if applicable, fiduciary income tax returns for the estate. Federal estate tax filings (Form 706) may be required for very large estates. For federal filing information see the IRS guide: IRS – Estate Tax. Check with a tax professional about any Nebraska-specific tax obligations.

Where Nebraska law and the court guide you

Nebraska courts oversee probate, approve executors’ actions, and enter distribution orders. The Nebraska Judicial Branch offers probate process information and forms that can help personal representatives understand what filings the court will expect: Nebraska Judicial Branch — Probate Information.

Final checklist before distribution

• Confirm all known creditors were notified and valid claims were paid or resolved.
• Ensure taxes (income and estate/fiduciary) are filed and liabilities addressed.
• Prepare a clear accounting of receipts and disbursements and provide it to beneficiaries and the court.
• Obtain a court order or written beneficiary consents as Nevada procedure requires before final distribution.
• Verify special rules for minors, incapacitated beneficiaries, or predeceased children’s descendants.

Disclaimer: This article explains general Nebraska probate principles and is not legal advice. It does not create an attorney-client relationship. For advice about a specific estate, contact a licensed Nebraska attorney.