Marriage can offer many benefits for estate planning purposes in Nebraska, largely due to the legal and financial protections and privileges granted to married couples under the law. It may not be the most romantic thing ever, but there are benefits to being legally married – especially when it comes to estate planning.
Here are some of the key benefits:
- Savings on Inheritance Taxes: As one of the few states in the nation that still has an inheritance tax, Nebraskans are frequently concerned about inheritance tax liability for their loved ones. The surviving person in an unmarried couple would have an inheritance exemption of $25,000.00, and thereafter the amount inherited would be subject to a 15% inheritance tax. But the surviving spouse of the decedent pays no inheritance taxes on funds inherited from their deceased spouse – this can result in an enormous amount of savings for the surviving spouse!
- Spousal Inheritance Rights: In Nebraska, if a person dies intestate (without a will), the surviving spouse has a right to inherit a significant portion of the deceased spouse’s estate. This can include real property, personal property, and other assets. The exact portion depends on other surviving relatives, but the spouse is frequently the primary beneficiary.
- Elective Share: Nebraska law provides for an “elective share” for surviving spouses. This means that a surviving spouse can choose to take a statutory portion of the deceased spouse’s estate (including both probate and non-probate assets), regardless of what the deceased’s will or estate plan might specify. This is designed to protect spouses from being disinherited without their consent.
- Retirement and Pension Benefits: Married couples may have advantages when it comes to retirement and pension benefits. Federal law requires that the beneficiary of an ERISA-qualified plan be a person’s spouse, unless the spouse consents to naming another beneficiary.
- Social Security Benefits: Married couples can benefit from spousal and survivor Social Security benefits, which can provide significant financial support to the surviving spouse.
When considering these benefits, it is important for married couples in Nebraska to engage in comprehensive planning. This might include drafting prenuptial agreements and wills, setting up trusts, and making strategic beneficiary designations to ensure that their estate planning goals are met and that their spouse and family are protected. The estate planning experts at Hightower Reff Law would be happy to meet with you to discuss how to optimize your estate planning, negotiate your prenuptial, and conduct your conference room wedding if needed!
This article should not be construed as legal advice. Situations are unique from one another and it is impossible to provide legal advice for every situation without knowing the individual facts.
If you would like to talk more about estate planning, contact Hightower Reff Law today.
