Planning for the future means deciding how you want your assets handled after you pass away. In Nebraska, wills and trusts are two common estate planning tools. Understanding how these documents work under Nebraska law can help you choose an estate plan that fits your needs.
Understanding the difference between a will and a trust in Nebraska
A will is a legal document that explains how you want your property distributed after your passing. It may also allow you to name a guardian for minor children. A will usually takes effect after a person dies. It usually requires probate to transfer assets owned only in the person’s name. However, Nebraska law may allow a simpler process through a non-probate affidavit if the estate meets certain requirements.
A revocable living trust allows you to place assets into a trust while you are alive and continue managing them as the trustee. As trustee, you can usually manage the trust assets and make changes while you have the legal ability to do so.
The main difference is that a will typically requires probate, while a properly created trust may allow assets to transfer without court supervision. Each option has different benefits depending on your estate and personal circumstances.
Does a living trust avoid probate in Omaha?
A revocable living trust can help simplify the transfer of assets after you pass on. When you move assets into the trust, the trust owns those assets instead of you personally. After passing on, your successor trustee can distribute the trust assets according to your instructions without going through probate.
A trust may reduce the time and costs connected to probate. However, only assets placed into the trust avoid probate. Property held only in your name may need to go through probate. However, Nebraska law may allow a simpler affidavit process if the total value of the property is less than $100,000.
How to protect estate assets from probate in Nebraska
If avoiding probate is important to you, several planning options may help. Moving certain assets into a trust, such as real estate, bank accounts and investments, may help keep them outside the probate process. You may also name beneficiaries for retirement accounts and life insurance policies. The insurance company or account provider may transfer these assets directly to your named beneficiaries once you pass away.
Joint ownership with rights of survivorship may also allow certain property to transfer automatically to another owner. Nebraska offers simpler probate options for qualifying estates. These include summary administration through the court and small estate affidavits that allow assets to transfer without a full probate process. An estate planning attorney can help you review your options and determine which tools may work best for your situation.
Considering privacy and public records
Privacy is another factor to consider when choosing between a will and a trust. When a will goes through probate in Nebraska, it becomes part of the public record. This means information about your assets and beneficiaries may become available to others.
A revocable living trust generally remains private because it does not go through probate court. If protecting your estate information is important, a trust may provide more privacy than a will alone. Many people use both documents together. A trust can manage major assets, while a will can address property that was not included in the trust.
Building an estate plan that fits your goals
The right choice for you depends on your assets, family situation and priorities. Review what you own, decide how you want those assets distributed and choose documents that support your wishes. Creating an estate plan now can help ensure your instructions are clearly documented. Reviewing your plan over time can also help you keep it updated as your circumstances change.