Distant relatives qualify as a Class 3 beneficiaries and get taxed as a rate of 18 percent. Annotations: Inheritance taxes are imposed on each beneficiary upon the value of property received by him while estate taxes are upon the right to transmit property and are based upon the whole estate transmitted. First Nat. Where a testator has designated in his will that estate or inheritance taxes be paid in a manner different than that provided by statute, his directions will control in Nebraska. 755, 736 N.W.2d 399 (2007). Nebraska Inheritance Laws. Of the six states with inheritance taxes, Nebraska has the highest top rate at 18 percent. While a child's residence is necessarily a factor to be considered in determining whether a parent-child relationship exists for purposes of this section, it is not the only factor. (1) Any person subject to the tax imposed by sections 77-2001 to 77-2037 may, prior to the final determination of the inheritance tax, make a tentative payment of the tax in order to avoid the accrual of interest or penalty on such tax. Nielsen v. Sidner, 191 Neb. 138, 190 N.W. Occupational Board Reform Act Survey Results. 864 (1912). In addition the homestead allowance, exempt property, and family maintenance allowance shall not be subject to tax. Inheritance tax; procedure for determination in absence of probate of estate; petition; notice; waiver of notice; hearing. The Nebraska inheritance tax applies to all property, including life insurance proceeds paid to the estate, which passes by will or intestacy. Terms Used In Nebraska Statutes 77-2004. Chapter 77 - Revenue and Taxation. Beneficiaries are responsible for paying the inheritance tax on the assets they inherit. Section 77-2005.01 expands the operation of this section and section 77-2005, extending the same tax treatment to the relatives of a former spouse to whom the deceased person was married at the time of the spouse's death, but in no sense conflicts with either of the other two statutes. Statutes, codes, and regulations. The burden is on the taxpayer to show that he or she clearly falls within the statutory language. There are only six states in the nation that levy an inheritance tax, and Nebraska is one of them. In all proceedings for the determination of inheritance tax, the following deductions from the value of the property subject to Nebraska inheritance taxation shall be allowed to the extent paid from, chargeable to, paid, payable, or expected to become payable with respect to property subject to Nebraska inheritance taxation: (1) The cost of the funeral of the decedent, including costs for interment and … In determining if the requisite acknowledged parental relationship exists for purposes of this section, the following factors should guide the trial court: (1) the family, (2) assumption of the responsibility for support beyond occasional gifts and financial aid, (3) exercise of parental authority and discipline, (4) relationship by blood or marriage, (5) advice and guidance to the child, (6) sharing of time and affection, and (7) existence of written documentation evincing the decedent's intent to act as parent. 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