How to sell a co-owned property in Nebraska to cover funeral and property tax expenses — FAQ
Disclaimer: This is general information, not legal advice. I am not a lawyer. For advice about your specific situation, consult a Nebraska attorney experienced in probate, real estate, or elder law.
Detailed answer
Short answer: First determine how the property is owned, then choose the appropriate path — voluntary sale (if all owners agree), a sale through the decedent’s estate (if the deceased’s share must be administered), or a court-ordered partition sale (if co-owners disagree). While doing this, contact the county treasurer/assessor about unpaid property taxes and arrange payment from sale proceeds or estate funds. Below are the step-by-step principles and a short hypothetical to make it practical.
1. Identify the form of ownership
The first and most important step is to determine how title is held. Common forms are:
- Joint tenancy with right of survivorship: At a co-owner’s death, that owner’s share typically passes automatically to the surviving joint tenant(s) and usually avoids probate. A surviving joint tenant can usually sell the entire property.
- Tenancy in common: Each owner holds a separate share. On death, a tenant in common’s share passes under their will or by intestacy and often must be handled through probate or by the personal representative/executor.
- Trust or other title arrangements: If title sits in a trust, the successor trustee may have authority to sell under the trust terms.
Check the deed at the county register of deeds or clerk’s office to confirm wording (e.g., “joint tenants,” “with right of survivorship,” or “tenants in common”).
2. If the decedent owned a share, does the estate need probate?
If the decedent’s interest passed automatically (joint tenancy or trust), you may not need probate to clear title. If the interest passes under a will or by intestacy, the personal representative must collect assets, pay debts (including funeral costs and taxes), and may need court authority to sell real estate. Nebraska’s rules on decedents’ estates are in Chapter 30 of the Nebraska Revised Statutes: Neb. Rev. Stat. Chapter 30 (Decedents’ Estates).
3. Options to sell to raise funds for funeral and taxes
- Voluntary sale by all owners: If all current title owners (including whoever acquired the deceased’s share outside probate) agree, they can list and sell the property and divide proceeds according to ownership shares. Use a written agreement and distribute funds after paying taxes and funeral costs.
- Buyout: One or more co-owners can buy out the decedent’s share (or other co-owners’ shares) using cash or financing.
- Sale by personal representative: If the decedent’s share is part of an estate under probate, the personal representative (executor/administrator) may sell real estate if the will or court order and Nebraska probate rules allow. Sales in probate often require court approval or following statutory procedures in Chapter 30: Neb. Rev. Stat. Chapter 30.
- Partition action: If co-owners cannot agree, any co-owner can ask the court to partition the property. A partition can divide the land physically or order a judicial sale and split proceeds by ownership share. See general civil procedure/partition rules in Nebraska: Neb. Rev. Stat. Chapter 25 (civil actions, including partition).
4. Handling funeral expenses and property taxes
Funeral expenses are generally claims against the decedent’s estate. The personal representative should pay allowed claims from estate assets before distributing remaining funds to heirs. If the estate lacks cash, a sale of estate assets (including real property) may be necessary. For property taxes, unpaid real estate taxes create an enforceable lien on the property. Contact the county treasurer or assessor to learn the tax status and the deadline to avoid penalties or a tax sale. Nebraska property tax statutes and rules are in Chapter 77: Neb. Rev. Stat. Chapter 77 (Taxation).
5. Practical steps — checklist
- Obtain the death certificate and a certified copy for the title and probate records.
- Get a copy of the deed from the county register of deeds to confirm ownership type.
- Contact the county treasurer/assessor to learn the property tax balance and payment deadlines.
- If the decedent’s share must pass through probate, contact the Nebraska county court about opening an estate and whether a simplified/small-estate procedure applies. See probate resources at the Nebraska Judicial Branch: Nebraska Judicial Branch – Probate.
- If all owners agree, execute a written sale agreement and use a real estate broker or agent to sell. Reserve funds from sale proceeds to pay funeral bills and taxes before distributing net proceeds.
- If co-owners disagree, consult an attorney about filing a partition action in county court to force sale or division.
6. Hypothetical example
Hypothetical facts: Two siblings, A and B, own a house in Omaha as tenants in common (50/50). A dies without a will. A’s funeral costs are $8,000 and there are $3,000 in unpaid property taxes. The estate contains A’s 50% share of the house but no cash.
How this might proceed:
- B checks the deed and confirms tenancy in common. A’s share passes to A’s heirs through probate. B cannot unilaterally sell the whole house.
- A’s heirs or the personal representative open probate. The personal representative arranges to sell A’s 50% interest or seek court approval to sell the property to pay funeral costs and taxes. Alternatively, B and the heirs agree that B will buy out A’s share or sell the entire property and divide proceeds.
- If there’s no agreement, either co-owner may file for partition and a court sale to convert the property into cash to pay debts and divide the remainder by ownership percentages.
7. Timing, costs, and likely obstacles
Probate and partition can take months and involve court fees, legal fees, appraisal costs, and realtor commissions. If unpaid property taxes risk a county tax sale, act quickly to pay or otherwise resolve the tax lien (the county treasurer can explain options to avoid tax sale). If funeral providers demand payment, they usually must file a claim in probate to be paid from estate assets.
8. When to consult an attorney
Talk with a Nebraska attorney if:
- Title is unclear, or you cannot find the deed.
- Co-owners disagree about selling or distribution.
- Probate seems necessary but you want to use a simplified procedure or need court approval to sell.
- Unpaid property taxes may trigger liens or tax sale.
An attorney can help open an estate, negotiate a buyout or sale, or file a partition action and explain likely costs and timelines under Nebraska law.
Helpful hints
- Start by pulling the deed at the county register of deeds; ownership language makes a big difference.
- Obtain several certified copies of the death certificate — you will need them for title changes, probate, and banks.
- Contact the county treasurer/assessor immediately to get a tax payoff amount and deadline to avoid additional penalties or tax sale: find county treasurer contact information on your county’s official website.
- If all owners agree, a written sale or buyout agreement is faster and cheaper than court proceedings.
- Keep detailed receipts for funeral expenses; funeral homes must usually file a claim in probate to be paid from estate assets.
- Consider mediation if co-owners disagree — it can be much cheaper than a partition lawsuit.
- Ask whether a simplified probate or small estate remedy applies before opening full probate. The Nebraska Judicial Branch provides guidance: Nebraska Judicial Branch – Probate.
Key Nebraska law references (for more research): Chapter 30 (Decedents’ Estates) — https://nebraskalegislature.gov/laws/statutes.php?chapter=30; Chapter 77 (Taxation) — https://nebraskalegislature.gov/laws/statutes.php?chapter=77; general civil actions/partition provisions — https://nebraskalegislature.gov/laws/statutes.php?chapter=25.
For a case-specific plan, consult a Nebraska attorney who handles probate and real estate matters.