DISCLAIMER: This article does not provide legal advice. It offers general information on Nebraska law. Consult a licensed attorney for advice on your specific situation.
Detailed Answer
When someone dies in Nebraska with a will or without one, the court appoints a personal representative to manage the estate. One key responsibility is safeguarding estate funds. Nebraska law strongly encourages opening a separate estate account to handle money of the estate. This practice ensures clear separation between personal and estate assets and demonstrates compliance with fiduciary duties.
Why open an estate account?
- Accountability: A dedicated estate account tracks incoming and outgoing funds for the estate alone.
- Fiduciary duty: The personal representative must act in beneficiaries’ best interests and avoid commingling assets.
- Record keeping: Banks provide statements and transaction histories, simplifying court reporting and final accounting.
Statutory backing
Nebraska’s Probate Code permits and guides estate investments and deposits. Under Neb. Rev. Stat. § 30-24,118, a personal representative may deposit estate money in a checking, savings, or other court-approved account. The statute states that all estate funds must be handled as approved investments or deposits, subject to court oversight.
Steps to open an estate account
- Obtain Letters of Administration or Letters Testamentary from the county court.
- Visit a local bank or credit union. Present the court-issued letters and the decedent’s death certificate.
- Open an account titled “[Estate of
- Deposit all estate receipts, such as insurance proceeds, sale of property, and account transfers.
- Use the account exclusively for estate expenses—funeral costs, creditor payments, taxes, and distributions.
Maintaining this separate account simplifies the inventory process required under Neb. Rev. Stat. § 30-24,117 and supports transparent reporting to the court and beneficiaries.
Helpful Hints
- Keep detailed records of every deposit, withdrawal, and transfer.
- Retain bank statements and canceled checks for court filing.
- Review Nebraska’s probate deadlines to avoid missed filings.
- Consider bonding requirements under Neb. Rev. Stat. § 30-24,156 if beneficiaries request a bond.
- Consult an estate attorney before investing large sums or making significant distributions.