This fact sheet provides rules and guidelines for the Central Nebraska Public Power and Irrigation District (District) Lease Ownership and Transfer policies to assist with estate planning that adheres to District policy requirements. It outlines permissible practices regarding future interests, estate planning techniques, and the transfer of leaseholds. By understanding these rules, cabin owners and lessees can make informed decisions while avoiding unintended lease violations and associated fees. This fact sheet is provided for informational purposes only and is not intended to constitute legal advice. Leaseholders and cabin owners should consult with a qualified attorney to address specific questions or circumstances related to lease ownership, transfers, or estate planning.
- Leaseholds that create future interests are not allowable per District policy.
- An irrevocable trust is not allowable as it would create a future interest in the leasehold.
- A Transfer on Death Deed is an estate planning technique that is allowable per District policy. A Transfer on Death Deed does not result in a transfer until the owner(s) are deceased. Once the owner(s) are deceased, a new lease is required which constitutes a lease transfer. The new transfer fee at the time will be assessed. All other District requirements, including credit score criteria and security deposits at the time of transfer for the new lessee(s) will be implemented.
- Any Transfer on Death Deed must be revocable, as to not create a future interest in the leasehold.
- A transfer of a cabin owner’s lease to a revocable trust is a "transfer" of a lessee's interest and, therefore, would be subject to the lease transfer fee at the time the District completes the transfer process.
- When a leasehold is owned by a corporation, limited liability company or trust, the principal owners or trustees of the entity shall personally guarantee the performance of the terms of the lease.