Estate Planning
Resources
FEDERAL GIFT TAX
The federal gift tax annual exclusion amount will increase to $19,000 per donee in 2025. As such, in 2025, a married couple can make gifts of up to $38,000 per calendar year per donee without using any portion of their lifetime gift tax exemptions. The exclusion for gifts made to a spouse who is not a United States citizen will be $190,000 in 2025.
ESTATE TAX
The Internal Revenue Service (IRS) taxes all estates which qualify for such tax. The estate tax is a federal tax, which means it applies regardless of where you reside. Each state, however, as its own laws on separate taxes. Under the Tax Cuts and Jobs Act of 2017, estates exceeding $13.99 Million per person or $27.98 Million per married couple may be taxed up to 40%. The federal estate tax exemption is adjusted annually for inflation. However, 2025 is the last year to take advantage of this high federal estate tax exemption, as the estate tax exemption is set to drop back to an estimated $7 Million per person, adjusted for inflation, on January 1, 2026.
INHERITANCE TAX
Some states impose an inheritance tax on persons who inherit money or property. This is known as an inheritance tax. As of 2025, five states impose an inheritance tax, one of which includes Nebraska. The amount of inheritance tax in Nebraska ranges from 1% – 15%, depending upon the value of the property inherited and the relationship of the beneficiary (the person receiving the inheritance) to the decedent.
Iowa (as of January 1, 2025) and South Dakota do not impose an inheritance tax.
| RELATIONSHIP TO DECEDENT | TAX RATE |
| Parents, grandparents, siblings, children | 1% in excess of $100,000 |
| Uncles, aunts, nieces, nephews, or lineal descendants of such relatives or surviving spouse of any of these | 11% in excess of $40,000 |
| All others (i.e. friends, neighbors, etc.) | 15% in excess of $25,000 |
| Charities | Exempt |
ESTATE PLANNNG FOR UNMARRIED COUPLES
Back in the day, most American families resembled the household of Ward and June Cleaver – perhaps not so (seemingly) put-together, but at least in terms of married parents with children. Nowadays, however, our country is not so “Leave It To Beaver.” According to the Census Bureau, the number of partners living together has nearly tripled in the last two decades from […]
PLASTIC AND PLANES
Most discussions regarding Wills and Trusts focus on where our common assets will go when we die, namely: real estate, bank accounts, cash, stock, investments, life insurance, and vehicles. While these common assets may make up the bulk of our wealth, don’t forget about some of your most prized possessions. You know, the plastic credit cards you use on the […]
UNTIL DEATH DO US PART
I love weddings. They’re full of love, dancing, and let’s be honest, I always take seconds of the cake! Many of my December evenings are spent watching the cheesy love-story Hallmark movies. What can I say, I’m a hopeless romantic. That is, until my attorney brain quickly takes over and I start thinking about the potential issues which could arise […]
PHOEBE BUFFAY AND NAME CHANGES
Phoebe Buffay from Friends is one of my all-time favorite characters. She is funny, loyal, caring, and somewhat ditzy while at the same time incredibly witty. Phoebe notoriously changed her names throughout the iconic show – often using the aliases of Regina Falange and once even legally changing her name to Princess Consuela Banana Hammock! As a family law attorney, […]