Legal Question in Tax Law in Nebraska

Re: Inheritence tax liability

I am assuming that when you state her estate is in Iowa that you mean that all of her house was located in Iowa. (I know that sounds silly, but it isn't unusual to have an estate in one state with a house located in another estate).

Anyway, the news for you should be good. If the real estate is in Iowa and your inheritance from that is all Iowa based, you are not subject to a Nebraska Inheritance tax.

The next good news is that Iowa does not impose an inheritance tax on property passing from a parent to their child. See the Iowa Tax code provision below:

"Property, interest in property, or income passing to the surviving spouse, and parents, grandparents, great-grandparents, and other lineal ascendants, children including legally adopted children and biological children entitled to inherit under the laws of this state, stepchildren, and grandchildren, great-grandchildren, and other lineal descendants, is not taxable under this section."

You should consult with the attorney for the Iowa estate just to be sure that all of this has been cleared for purposes of compliance with the Iowa Dept of Revenue as well as state probate statutes.

Best regards,

Monte