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LB 422

Change provisions of the Nebraska Uniform Real Property Transfer on Death Act

109th Legislature (2025-2026) Introduced by Tanya Storer

LB 422 grants TOD beneficiaries temporary insured status after death, warns on TOD deed insurance lapse, and limits coverage to policy end, new coverage, or 30 days with premium.

Approved by Governor on May 30, 2025
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Bill Summary · LB 422

Summary — LB 422 (Approved May 30, 2025)

Title: Change provisions of the Nebraska Uniform Real Property Transfer on Death Act
Introduced: Jan 17, 2025 (Sen. Tanya Storer) — Approved by Governor May 30, 2025

Purpose / Intent

LB 422 modifies the Nebraska Uniform Real Property Transfer on Death Act to address property insurance coverage when real estate is transferred by a recorded transfer-on-death (TOD) deed. The bill clarifies the insured status of a designated beneficiary after the transferor’s death and requires an additional warning be included on TOD deeds about potential expiration of property insurance.

Key provisions

  • Citation update: Sections 76-3401 and 76-3410 are amended and a new section 3 is added to the Act.
  • Warning on TOD deeds (section 76-3410(b)(2)):
    • TOD deeds executed after the bill’s effective date must include a warning that property insurance on transferred property may expire after the transferor’s death and describe the limited post-death coverage (see next item).
  • Temporary insured status for beneficiary (new section 3):
    • The designated beneficiary is deemed an insured party under any property insurance policy covering the transferred real estate for the period from the transferor’s death until the earliest of:
    • The end of the policy period as if the transferor were still living;
    • The date the designated beneficiary obtains alternative coverage; or
    • Thirty days after the transferor’s death — and only if any premium required for the days beyond the policy period is paid.
    • The beneficiary does not acquire any interest in policy proceeds that accrued before the insured’s death.
    • The change does not affect coverage provided to household members or others who are otherwise deemed insured on the insured’s death.
    • A beneficiary may be named on a policy before death but is not treated as the named insured until the insured’s death; there is no pre-death requirement that the beneficiary be named on the policy.
  • Repealer: Original sections 76-3401 and 76-3410 are repealed and replaced by the amended language.

Who is affected

  • Transferors (property owners using TOD deeds): must be aware insurance on the property may lapse sooner than beneficiaries expect and may need to add beneficiaries as insureds or otherwise address coverage before death.
  • Designated beneficiaries under TOD deeds: receive limited, temporary insured status after death but must secure alternative coverage quickly; they are not entitled to pre-death insurance proceeds.
  • Insurers and insurance markets: required to honor temporary insured status within the statutory limits and manage premium/coverage adjustments when policy periods end.
  • Estate planners, attorneys, and Medicaid/inheritance stakeholders: interactions with Medicaid eligibility, estate claims, and inheritance taxation remain relevant (other statutory warnings remain in place).

Procedural / timeline notes

  • Committee activity: Referred to Judiciary (Jan 22); hearing Feb 27; Judiciary adopted amendment AM841 (which shaped the final wording).
  • Floor action: Advanced through General/Select/Final reading; passed final reading 48–0–1 (May 28, 2025).
  • Enactment: Presented to Governor May 28, 2025; approved May 30, 2025 (effective per standard state law timing unless otherwise specified).

Practical effect

The law gives designated TOD beneficiaries temporary insured status to reduce immediate lapse risk but creates a clear, limited window (policy end, obtaining new coverage, or up to 30 days with paid premium). TOD deed drafters and property owners should update forms to include the statutorily required warning and consider insurance arrangements to avoid coverage gaps after death.

Compiled from official sources — confirm details with the bill’s official record.

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