If an estate for life or years be found to exist as an encumbrance upon any part of said property, and if the parties cannot agree upon the sum in gross which they will consider an equivalent for such estate, the court shall direct the avails of the encumbered property to be invested, and the proceeds to be paid to the encumbrancer during the existence of the encumbrance.
§ 25-2193.Encumbrances; life estate or estate for years; settlement in gross; investment of proceeds.
Article 21: Special Proceedings and Actions · Not amended since original codification · Last verified July 22, 2026
In one sentenceThis section handles a life estate or estate for years encumbering partitioned land by directing the court, when the owner and the life tenant cannot agree on a lump-sum buyout, to invest the proceeds from that property and pay the return to the life tenant for as long as the encumbrance lasts.
Full Text of § 25-2193
Source
R.S.1867, Code § 826, p. 540; R.S.1913, § 8309; C.S.1922, § 9261; C.S.1929, § 20-2193; R.S.1943, § 25-2193.
Plain-English Summary
Some encumbrances are not as simple as a mortgage with a fixed balance. A life estate — the right to use or draw income from property for a lifetime — or an estate for years poses its own puzzle: how does a court value a right that lasts an uncertain or fixed span of time against a lump-sum share of sale proceeds? Section 25-2193 answers that question when the parties cannot agree on a number.
If the parties cannot settle on a sum in gross that would stand in for the life estate or term of years, the court directs the proceeds from the encumbered property to be invested rather than distributed outright. The encumbrancer — the life tenant or term holder — then receives the return on that investment for as long as the encumbrance exists, rather than a one-time payout.
Frequently Asked Questions
What if the parties agree on a lump sum for a life estate encumbrance?
This section applies when the parties cannot agree on such a sum in gross; a consensual settlement follows its own course outside this specific mechanism.
What happens to the sale proceeds when no lump-sum agreement is reached?
The court directs the proceeds attributable to the encumbered property to be invested.
Who receives the income from that investment?
The encumbrancer — the holder of the life estate or estate for years — during the life of the encumbrance.
How long does the encumbrancer keep receiving that income?
For as long as the life estate or estate for years continues to exist.
Why invest the proceeds instead of paying the encumbrancer a share outright?
A life estate or term of years is hard to value with certainty as a fixed sum, so investing the proceeds and paying the return matches the payment to the ongoing nature of the interest.
Does this section apply to an ordinary mortgage encumbrance?
No. It is aimed at a life estate or estate for years found to encumber the property, not a fixed-debt encumbrance such as a mortgage or lien.
Source & verification. Section text and the amendment-history citation are
reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the
Nebraska Legislature. Last verified July 22, 2026. ·
Official source
Also known as: life estate encumbrance partition nebraskaestate for years partition proceedssettlement in gross life estateinvesting proceeds for life tenantlife tenant encumbrance payment