Disclaimer: This article is for informational purposes and does not constitute legal advice.
Detailed Answer
In Nebraska, the total cost of administering an estate depends on several factors. Understanding each expense category helps you budget and avoid surprises during probate.
1. Personal Representative Commissions
The court awards commissions to the personal representative (executor or administrator) based on the estate’s value. Under Neb. Rev. Stat. § 30-24,103, commissions are set at:
• 4% on the first $100,000
• 3% on the next $100,000
• 2% on the next $600,000
• 1% on the balance
(See Neb. Rev. Stat. § 30-24,103.)
If the personal representative performs extraordinary services—such as defending complex claims—the court may award additional fees under Neb. Rev. Stat. § 30-24,106. (Neb. Rev. Stat. § 30-24,106.)
2. Attorney Fees
Nebraska law allows attorneys to charge reasonable fees for probate work. Fees vary by complexity, estate size and local market rates. The court reviews fee petitions to ensure they are fair and customary.
3. Court Filing Fees
Probate filing fees cover the initial petition, inventory, accounting and final distribution. Fees differ by county; most range from $200 to $400. Check your local probate court’s fee schedule at Nebraska Judicial Resources.
4. Probate Bond Premiums
If the will does not waive a bond, the personal representative must secure one. Bond premiums usually run 1–3% of the bond amount, which equals the estate’s total value. Courts may permit bond waivers when all beneficiaries consent in writing.
5. Appraisals and Valuations
Real estate, business interests or unique assets often require professional appraisals. Appraisal fees depend on the asset type but can range from $300 to $1,000 per appraisal. Accurate valuations ensure proper distribution and tax reporting.
6. Publication and Notice Costs
Probate requires publishing notice to creditors in a local newspaper and sending notices to known creditors. Publication fees vary by newspaper but typically cost $50–$200.
7. Accounting and Tax Preparation Fees
Preparing fiduciary income and estate tax returns may require a CPA or tax professional. Fees depend on return complexity but generally start at $500. Note: Nebraska repealed its estate tax in 2005; only federal estate taxes may apply if the estate exceeds federal thresholds.
8. Miscellaneous Expenses
Additional expenses include postage, courier charges, bank fees, property maintenance and repairs until distribution. Small expenses add up, so keep detailed records.
Helpful Hints
- Obtain fee waivers: Beneficiaries can waive bonds and personal representative commissions by unanimous written consent.
- Compare attorney rates: Shop around for competitive probate fees and request an engagement letter outlining costs.
- Keep detailed records: Track every expense to streamline accounting and avoid court objections.
- Request court approval: File fee petitions for personal representative and attorney fees early in the process.
- Plan for taxes: Consult a tax professional if federal estate taxes may apply.