Disclaimer: This article is for educational purposes and is not legal advice.
Detailed Answer
During Nebraska probate, the personal representative (formerly called executor) must protect estate assets and pay ongoing bills and final expenses. Here’s how this process typically works:
- Appointment of Personal Representative: After filing the will and petition in county court, the court issues Letters of Administration or Letters Testamentary. These documents authorize the representative to act on behalf of the estate.
- Inventory and Appraisal: The representative compiles an inventory of assets (real estate, bank accounts, investments) and files it with the court. This step stops creditors from attacking assets outside the probate process.
- Notice to Creditors: Within one month of appointment, the representative publishes a notice in a local paper and may mail notices to known creditors, per Neb. Rev. Stat. § 30-24,115. Creditors then have four months to file claims.
- Payment of Ongoing Bills: The representative uses estate funds to pay necessary expenses—such as mortgage payments, utilities, insurance premiums, property taxes, and home maintenance. It’s critical to keep detailed records and bank statements for court review.
- Allowance for Family Support: Under Neb. Rev. Stat. § 30-24,127, the representative may pay reasonable living expenses to a surviving spouse or minor children during administration, subject to court approval if requested.
- Resolving Creditor Claims: Valid claims (funeral expenses, medical bills, taxes) are paid in priority order after notice expiration. The representative must review each claim, reject improper ones, and seek court guidance if in doubt.
- Final Accounting and Distribution: After debts and bills are paid, the representative files a final accounting with the court. Once the court approves, the remaining assets are distributed to beneficiaries according to the will or Nebraska intestacy law.
Helpful Hints
- Open a separate estate bank account immediately after receiving Letters to simplify recordkeeping.
- Create a detailed spreadsheet of bills, due dates, amounts, and payment methods.
- Keep copies of all invoices and receipts; courts review them during final accounting.
- Beware of deadlines—publish notice and file creditor notices within one month of appointment.
- Consult with an estate attorney early to clarify duties and avoid personal liability.
- Check property insurance and mortgage status to prevent liens or lapses.
- Consider bonding requirements; sometimes the court requires a surety bond to protect creditors and beneficiaries.