By Ashley Kraus, Trust & Estate Planning Attorney
Termination or relinquishment of parental rights is one of the most difficult moments in a person’s life. What many parents don’t know, however, is that permanent loss of parental rights does not prevent the child’s ability to inherit from that parent in Nebraska. If the parent who relinquished or terminated their rights dies intestate (i.e., without a Will or Trust), that child can inherit from the parent’s estate.
Why Parents Cannot Inherit from Children, but Children Can Inherit from Parents after Terminating Rights
The Nebraska Probate Code specifically prohibits a parent from inheriting from their child when their rights to the child are terminated. Meanwhile, the Nebraska Family Code provides that a child of a parent who has relinquished their rights may still inherit from that parent. Although the terminology is different, courts have held that regardless of whether the loss of parental rights was voluntary or involuntary, a child still has the right to inherit from their biological parent. This right cannot be waived by the child, and therefore a court would not accept a termination or relinquishment order that prohibited the child from inheriting from their biological parent.
In re Estate of McCormick: Case Study
This principle was discussed in the 2024 Nebraska Supreme Court decision In re Estate of McCormick. There, a biological father had his rights to his only child terminated around one year after paternity was adjudicated. When the father died intestate more than thirty years later, his sister-in-law attempted to probate his estate and distribute his remaining assets to his parents and siblings. Shortly thereafter, the biological child intervened, arguing that she was the sole heir. Pursuant to the Nebraska statutes, the court found that she was the sole heir of her father’s estate, and his entire estate was distributed to her.
How Adoption Changes Inheritance Rights in Nebraska
A key fact in McCormick was that the child was never adopted after the termination of the father’s parental rights. Under the Nebraska Probate Code, an adopted child is only a child of the adopting parent(s) and not the biological parent(s). Had the decedent’s child been adopted by another person, her right to inherit from her biological father would have been extinguished. In that situation, the father’s assets would have been distributed to his parents and siblings as originally anticipated.
Creating a Will or Trust Acknowledging the Child
The result in McCormick could have been prevented if the father created a Will or Trust after the child was born. The father could acknowledge the existence of the biological child but expressly disinherit her without risk of the Will or Trust being overturned. As long as the Will or Trust was correctly drafted and executed in accordance with Nebraska law, his daughter would not have been able to inherit. A termination or relinquishment of parental rights need not occur in order to disinherit a child in a Will or Trust.
At Goosmann Law Firm, our attorneys understand the complexities of estate planning and family law. If you’re facing a termination of parental rights, we can assist with the process and help ensure your estate plan reflects your wishes.
This blog is for informational purposes only and does not constitute legal advice. You should not act or rely on any information in this blog without first consulting a qualified attorney regarding your specific situation.