30-2476 Transactions authorized for personal representatives; exceptions. - Nebraska Statutes

30-2476. Transactions authorized for personalrepresentatives; exceptions.Except as restricted or otherwiseprovided by the will or by an order in a formal proceeding, without limiting the authority conferred by section 30-2472, andsubject to the priorities stated in section 30-24,100, a personal representative,acting reasonably for the benefit of the interested persons, may properly:(1) retain assets owned by the decedent pending distribution or liquidationincluding those in which the representative is personally interested or whichare otherwise improper for trust investment;(2) receive assets from fiduciaries or other sources;(3) perform, compromise, or refuse performance of the decedent's contractsthat continue as obligations of the estate, as he or she may determine underthe circumstances. In performing enforceable contracts by the decedent toconvey or lease land, the personal representative, among other possible coursesof action, may:(i) execute and deliver a deed of conveyance for cash payment of allsums remaining due or the purchaser's note for the sum remaining due securedby a mortgage or deed of trust on the land; or(ii) deliver a deed in escrow with directions that the proceeds, whenpaid in accordance with the escrow agreement, be paid to the successors ofthe decedent, as designated in the escrow agreement;(4) satisfy written charitable pledges of the decedent irrespectiveof whether the pledges constituted binding obligations of the decedent orwere properly presented as claims, if in the judgment of the personal representativethe decedent would have wanted the pledges completed under the circumstances;(5) if funds are not needed to meet debts and expenses currently payableand are not immediately distributable, deposit or invest liquid assets ofthe estate, including money received from the sale of other assets, in federallyinsured interest-bearing accounts, readily marketable secured loan arrangements,or other prudent investments which would be reasonable for use by trusteesgenerally;(6) acquire or dispose of an asset, including land in this or anotherstate, for cash or on credit, at public or private sale; and manage, develop,improve, exchange, partition, change the character of, or abandon an estateasset;(7) make ordinary or extraordinary repairs or alterations in buildingsor other structures, demolish any improvements, and raze existing or erectnew party walls or buildings;(8) subdivide, develop, or dedicate land to public use; make or obtainthe vacation of plats and adjust boundaries; or adjust differences in valuationon exchange or partition by giving or receiving considerations; or dedicateeasements to public use without consideration;(9) enter for any purpose into a lease as lessor or lessee, with orwithout option to purchase or renew, for a term within or extending beyondthe period of administration;(10) enter into a lease or arrangement for exploration and removal ofminerals or other natural resources or enter into a pooling or unitizationagreement;(11) abandon property when, in the opinion of the personal representative,it is valueless, or is so encumbered, or is in condition that it is of nobenefit to the estate;(12) vote stocks or other securities in person or by general or limitedproxy;(13) pay calls, assessments, and other sums chargeable or accruing againstor on account of securities, unless barred by the provisions relating to claims;(14) hold a security in the name of a nominee or in other form withoutdisclosure of the interest of the estate but the personal representative isliable for any act of the nominee in connection with the security so held;(15) insure the assets of the estate against damage, loss, and liabilityand himself or herself against liability as to third persons;(16) borrow money with or without security to be repaid from the estateassets or otherwise; and advance money for the protection of the estate;(17) effect a fair and reasonable compromise with any debtor or obligor,or extend, renew, or in any manner modify the terms of any obligation owingto the estate. If the personal representative holds a mortgage, pledge, orother lien upon property of another person, he or she may, in lieu of foreclosure,accept a conveyance or transfer of encumbered assets from the owner thereofin satisfaction of the indebtedness secured by lien;(18) pay taxes, assessments, compensation of the personal representative,and other expenses incident to the administration of the estate;(19) sell or exercise stock subscription or conversion rights; consent,directly or through a committee or other agent, to the reorganization, consolidation,merger, dissolution, or liquidation of a corporation or other business enterprise;(20) allocate items of income or expense to either estate income orprincipal, as permitted or provided by law;(21) employ persons, including attorneys, auditors, investment advisors,or agents, even if they are associated with the personal representative, toadvise or assist the personal representative in the performance of his orher administrative duties; act without independent investigation upon theirrecommendations; and instead of acting personally, employ one or more agentsto perform any act of administration, whether or not discretionary;(22) prosecute or defend claims or proceedings in any jurisdiction forthe protection of the estate and of the personal representative in the performanceof his or her duties;(23) sell, mortgage, or lease any real or personal property of the estateor any interest therein for cash, for credit, or for part cash and part credit,and with or without security for unpaid balances;(24) continue any unincorporated business or venture in which the decedentwas engaged at the time of death;(25) form a business entity that has limitedliability, including a limited partnership, limited liability partnership,limited liability company, or corporation, for any business orventure in which the decedent was engaged at the time of death;(26) provide for exoneration of the personal representative from personalliability in any contract entered into on behalf of the estate;(27) satisfy and settle claims and distribute the estate as providedin the Nebraska Probate Code. SourceLaws 1974, LB 354, § 154, UPC § 3-715; Laws 1978, LB 650, § 17; Laws 1993, LB 315, § 1; Laws 2010, LB758, § 3.Effective Date: July 15, 2010AnnotationsPursuant to subsections (18) and (21) of this section, failure to inform court of attorney fee payments did not violate this particular supervised administration because such fees were not "distributions." In re Estate of Snover, 233 Neb. 198, 443 N.W.2d 894 (1989).The covenant of a personal representative's deed of lawful power and authority to convey real property is not a warranty of title and contains no implication of a covenant warranting titles. Ihde v. Kempkes, 228 Neb. 433, 422 N.W.2d 788 (1988).A personal representative, under both the old and new probate code, has the authority to settle claims in favor of the estate against third parties. Brown v. Sherwood, 203 Neb. 209, 278 N.W.2d 565 (1979).Under prior law the personal representative of a deceased person acting reasonably for the benefit of the interested persons may sell any real property of the estate following a court order with notice given in the manner prescribed by section 30-2220. Booth v. Reisdorff, 202 Neb. 7, 272 N.W.2d 915 (1978).Generally, a beneficiary has no standing to prosecute a claim for the protection of the estate under subsection (22) of this section. Hampshire v. Powell, 10 Neb. App. 148, 626 N.W.2d 620 (2001).Unless restricted by the provisions of a will or by an order of court in a formal proceeding, a personal representative is authorized to employ persons, including attorneys, to advise or assist in the performance of administrative duties. When a personal representative employs an attorney to advise or assist in the performance of administrative duties, the attorney serves as an attorney for the personal representative, and the attorney owes no duty of care to the estate or to the beneficiaries; the personal representative, not the estate, is the attorney's client. In re Estate of Snover, 4 Neb. App. 533, 546 N.W.2d 341 (1996).