Disclaimer: This article provides general legal information only. It does not constitute legal advice. Consult a licensed Nebraska attorney for advice specific to your situation.
Detailed Answer
When someone dies in Nebraska, you must decide whether a vehicle titled in their name remains part of the probate estate. Nebraska law offers several rules to guide this determination:
1. Transfer-on-Death (TOD) Vehicle Designation
Nebraska permits owners to name a beneficiary on a vehicle title. Upon the owner’s death, the vehicle passes directly to the named beneficiary outside probate. Key points:
- To use TOD, the decedent must complete the authorized form on the back of the certificate of title or submit a separate form to the DMV.
- If a valid TOD designation exists at death, the vehicle never becomes estate property. The DMV issues a new title to the beneficiary after proof of death and ID. See Neb. Rev. Stat. § 60-3,136.
2. Vehicles Owned at Death
If the decedent held title in their name alone and did not use TOD, the vehicle is an asset of the decedent’s probate estate. The personal representative must list it on the inventory and manage it under Nebraska’s Probate Code, Chapter 30, Article 24. See Neb. Rev. Stat. § 30-24,101.
3. Transfers in Contemplation of Death
Nebraska voids transfers made “in contemplation of death.” If the decedent transferred a vehicle shortly before death with the primary intent to avoid probate or defraud creditors, the transfer is revoked as if it never happened. Such vehicles re-enter the estate for distribution. See Neb. Rev. Stat. § 30-24,219.
4. Lifetime Gifts
If the decedent gifted the vehicle well before they died and without intent related to death, the vehicle stays with the recipient. However, if a gift occurs shortly before death, the personal representative may challenge it under the transfers-in-contemplation rules above.
Helpful Hints
- Check the title certificate for a TOD or joint owner designation.
- Gather purchase records or prior transfer documents to confirm when and why title changed.
- Review Nebraska’s probate statutes (Chapter 30) for estate asset definitions and procedures.
- Consider whether a transfer occurred within months of death; you may need to argue the transfer was in contemplation of death.
- Consult the DMV’s vehicle title guide on beneficiary designations to confirm TOD requirements.