Nebraska: Who Pays for an Appraisal Before an Estate Buyout?

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

Who pays for an appraisal when one heir buys out another’s share of an estate in Nebraska?

Short answer: It depends. Whether a co‑heir must reimburse you for an appraisal before an estate buyout in Nebraska turns on who ordered and paid for the appraisal, whether the estate is under probate administration, any written agreement between heirs, and whether a court becomes involved. Often the practical solution is to document an agreement allocating the cost or to have the appraisal cost credited against the buyer’s or seller’s share. This article explains the legal framework, practical options, and next steps under Nebraska law.

Detailed answer — how Nebraska law and estate practice apply

Start with two basic distinctions that determine who normally bears appraisal costs:

  • Estate administration vs. private negotiation: If the appraisal was ordered by the personal representative (executor/administrator) as part of formal probate administration, appraisal fees are generally estate administration expenses and are paid from the estate before distributions are made. If an individual heir independently hires an appraiser to support a private buyout negotiation, that cost is usually a private expense of the person who ordered it unless the heirs agree otherwise.
  • Written agreement or court order: Heirs can agree (preferably in writing) about how appraisal fees and other costs will be allocated. If the parties cannot agree and the matter goes to court (probate court or district court in a partition/buyout dispute), a judge can equitably allocate costs and may order one party to reimburse the other.

Nebraska’s probate statutes govern the duties and powers of a personal representative and the order in which estate expenses are paid. For general reference to Nebraska’s rules about decedents’ estates and fiduciary duties, see the Nebraska Revised Statutes, Title 30 — Decedents’ Estates and Fiduciary Relationships: https://nebraskalegislature.gov/laws/statutes.php?chapter=30.

Common scenarios and how they usually resolve

1) Appraisal ordered by the personal representative (PR) during probate

When the PR hires an appraiser to value estate property, the fee is typically paid from estate assets as an administration expense. The PR can then distribute net proceeds to heirs. If one heir buys out another after the appraisal, the PR may deduct the appraisal fee from estate assets before computing each heir’s share. If heirs disagree, they can ask the probate court for instructions or an accounting.

2) One co‑owner/heir hires an appraiser for a private buyout negotiation

If you personally commissioned an appraisal to set a buyout price and there was no prior agreement, you normally cannot force the other heir to reimburse you unless they agree or a court awards reimbursement. Practically, buyers and sellers often resolve this by:

  • Splitting the appraisal cost;
  • Crediting the appraisal cost against the purchase price (e.g., buyer pays full price but the seller reduces price by half the appraisal fee); or
  • Getting a joint appraisal where the cost is shared up front.

3) Dispute or partition action

If heirs cannot agree and a dispute goes to court (for example, a petition for partition or for instructions in probate), Nebraska courts have equitable powers to allocate costs, including appraisal fees and attorneys’ fees. A judge can order reimbursement or adjust distributions so the party who benefited more effectively pays a larger share of costs. If you believe you are entitled to reimbursement, you can ask the court to decide.

Practical steps to protect your position

  1. Document who ordered and paid for the appraisal. Keep the invoice and the appraiser’s report.
  2. Ask the personal representative whether the appraisal is part of estate administration. If so, request that the fee be paid from estate funds (and reflected in the accounting).
  3. Before finalizing any buyout, present the co‑heir with a written allocation plan (split cost, credit against buyout price, or require reimbursement). Get any agreement in writing and signed.
  4. If the other heir refuses, consider offering to adjust the buyout price instead of insisting on immediate reimbursement. Splitting the difference can speed a resolution.
  5. If negotiation fails, consult an attorney about filing a petition in probate or district court asking the court to apportion appraisal costs or to order an equitable accounting.

Timing and risks

Requiring immediate reimbursement (before closing a buyout) without a signed agreement can prolong settlement and increase legal costs. Conversely, accepting responsibility for the fee without written protection may make it hard to recover the cost later. Courts generally favor clear documentation and prompt requests for court instructions if parties disagree.

What a Nebraska court is likely to consider

  • Who ordered and benefitted from the appraisal.
  • Whether the appraisal was reasonable and necessary for proper administration or valuation.
  • Any existing written agreements among the heirs or instructions from the personal representative.
  • Equitable considerations — courts may shift costs to prevent unfair advantage.

Helpful hints

  • Get a written cost‑allocation agreement before paying an appraisal. Simple language: “Appraisal fee of $X will be split equally between heirs A and B, or credited against the buyer’s purchase price.”
  • Consider a joint or court‑ordered appraisal to avoid later disagreements.
  • If the estate is open, ask the personal representative to classify the appraisal as an estate expense so it’s paid from estate assets.
  • Keep receipts and the appraiser’s qualifications; courts favor licensed, contemporaneous appraisals.
  • If you expect a buyout, get at least two valuations or a reconciliation to reduce disputes over value and cost allocation.
  • If negotiations stall, consult a Nebraska probate or real estate attorney promptly — small disputes can become expensive when litigated.
  • Use the Nebraska statutes on decedents’ estates for guidance: Neb. Rev. Stat., Title 30.

When to get legal help

Talk to a Nebraska attorney if:

  • The other heir refuses a reasonable cost‑sharing proposal;
  • There’s disagreement about whether the appraisal was necessary for estate administration;
  • You need a court order (probate or district court) to allocate costs or complete a buyout safely.

An attorney can help draft a buyout agreement that allocates appraisal fees, seek a court accounting, or represent you in a partition or probate proceeding.

Disclaimer: This article is for general information and education about Nebraska law only. It is not legal advice and does not create an attorney‑client relationship. For advice about your specific situation, consult a licensed Nebraska attorney.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.