How to Distinguish Assets Belonging to a Deceased Person’s Estate from Those Held by a Corporation in Nebraska

Detailed Answer

When someone dies in Nebraska, their personal property and real estate held in their name alone typically pass through probate as part of the decedent’s estate. In contrast, a corporation—whether established by a relative or anyone else—owns its assets separately. Understanding the difference helps estate administrators, beneficiaries, and creditors.

1. Identify Title and Ownership

Check how each asset is titled. Under Nebraska law, any property titled in the decedent’s name alone becomes part of the probate estate. See Neb. Rev. Stat. § 30-2203 (link). By contrast, assets held in the corporation’s name belong to the corporation. Corporate bank accounts, vehicles, or real estate will list the corporation as the owner.

2. Review Corporate Formation Documents

A properly formed Nebraska corporation is a separate legal person. Its articles of incorporation, bylaws, and annual reports identify its assets and obligations. Nebraska’s Business Corporation Act confirms this separation. See Neb. Rev. Stat. § 21-206 (link).

3. Examine Shareholder Interests vs. Corporate Assets

If the decedent held shares in the corporation, those shares form part of the estate—not the underlying corporate assets. The estate may inherit stock certificates or membership interests but does not automatically acquire corporate property. The corporation retains ownership until shares transfer under its bylaws or under Neb. Rev. Stat. § 21-217 (link).

4. Watch for Joint Tenancy and Trust Arrangements

Some assets avoid probate by joint tenancy or beneficiary designation. Jointly titled accounts pass to survivors by right of survivorship. Trust-held assets bypass probate entirely. See Neb. Rev. Stat. § 30-2204 (link). Corporate assets never enter probate unless the corporation itself dissolves.

5. Beware of Piercing the Corporate Veil

In rare cases, a court may disregard the corporation’s separate status if a relative abused it to hide personal assets or commit fraud. Nebraska courts require clear evidence of commingling or undercapitalization. See Hobson v. Hall, 262 Neb. 528 (2001).

Helpful Hints

• Review each title and deed to confirm named owners.
• Obtain corporate minutes, ledgers, and bank statements for clarity.
• Check for beneficiary designations on life insurance or retirement plans.
• Consult an attorney if you suspect improper mixing of personal and corporate assets.
• Maintain separate bank accounts and records for the estate and any related corporation.