State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter30 > 30-2496

30-2496. Encumbered assets.If any assets of the estate are encumbered by mortgage, pledge, lien, or other security interest, the personal representative may pay the encumbrance or any part thereof, renew or extend any obligation secured by the encumbrance or convey or transfer the assets to the creditor in satisfaction of his lien, in whole or in part, whether or not the holder of the encumbrance has filed a claim, if it appears to be for the best interest of the estate. Payment of an encumbrance does not increase the share of the distributee entitled to the encumbered assets unless the distributee is entitled to exoneration. SourceLaws 1974, LB 354, § 174, UPC § 3-814.AnnotationsPersonal representative has discretion to satisfy an encumbrance immediately if it is in the best interests of the estate. McCook Nat. Bank v. Bennett, 248 Neb. 567, 537 N.W.2d 353 (1995).