In re Estate of Lakin, 310 Neb. 271

Charles E. Lakin (decedent) left a written 1984 "Promissory Note" to long‑time employee Thomas Pribil that paid $1.2M (plus $50,000/year thereafter) as deferred compensation, payable upon Pribil’s 60th birthday or Lakin’s death.
Pribil and Lakin’s grandson William Kilzer were appointed copersonal representatives of the estate and cotrustees of the revocable trust (the Charles E. Lakin Foundation, Inc. was the primary trust beneficiary).
Pribil did not file a formal claim in probate under Neb. Rev. Stat. ch. 30; nevertheless, Pribil and Kilzer caused roughly $6.95M to be paid to Pribil from trust/estate assets in 2016 without court approval and after liquidating trust assets.
The Foundation sued to suspend/remove the representatives and trustees, sought surcharge and an accounting, and moved to compel distribution; Pribil and Kilzer moved for summary judgment and the county court granted their motions, concluding the payment was proper.
The Nebraska Supreme Court held the estate claim arose during decedent’s lifetime and, because Pribil failed to present a claim as required by the nonclaim statutes, the payment was barred; it reversed summary judgment on fiduciary‑duty claims and remanded for further proceedings.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Characterization of the 1984 instrument	Foundation: it is a promissory note enforceable at law but contested	Pribil/Kilzer: it is deferred compensation for services	Court: substance controls—document is deferred compensation (not simple promissory note)
Statute of limitations	Foundation: demand date was Pribil’s 60th birthday (2007) so SOL expired	Defendants: payment occurred after decedent’s death; deferred‑comp statute starts when work complete	Court: SOL did not run until employment ceased at decedent’s death, so timing of SOL was not a bar
Necessity of presenting a claim in probate	Foundation: debt arose during Lakin’s life so claim presentation under nonclaim statute was required	Defendants: amounts were wages/administrative expenses after death and no formal claim needed	Court: debt was for deferred wages earned during life; claimant had to present/file a claim; Pribil failed to do so, so claim was barred
Fiduciary breach / summary judgment	Foundation: paying a barred claim and liquidating trust assets without notice/approval breached duties and merits surcharge/removal	Defendants: acted within discretion, relied on counsel/accountant, followed grantor’s directions and trust terms	Court: unresolved material factual issues remain on breach, causation, damages and procedural questions; summary judgment improper; remand required

Sundermann v. Hy‑Vee, 306 Neb. 749, 947 N.W.2d 492 (summary judgment standard)
In re Estate of Muncillo, 280 Neb. 669, 789 N.W.2d 37 (denial of appointment of special administrator is final and appealable)
J.R. Simplot Co. v. Jelinek, 275 Neb. 548, 748 N.W.2d 17 (mere notice to personal representative is not a statutory presentation of claim)
In re Estate of Feuerhelm, 215 Neb. 872, 341 N.W.2d 342 (requirements for claim presentation under nonclaim statute)
Marcovitz v. Rogers, 276 Neb. 199, 752 N.W.2d 605 (equity looks to substance over form re: promissory instruments)
Dooling v. Dooling, 303 Neb. 494, 930 N.W.2d 481 (deferred compensation treated as compensation for services)
Livingston v. Metropolitan Util. Dist., 269 Neb. 301, 692 N.W.2d 475 (deferred compensation principles)
Weiss v. Weiss, 179 Neb. 714, 140 N.W.2d 15 (statute of limitations for deferred compensation begins when work completed)
In re Estate of Golden, 120 Neb. 226, 231 N.W. 833 (nonclaim statute strictly applied; administrator cannot waive nonclaim defense)