• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Deceased Beneficiary, Sole Heir, Small Estate

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Octavian

Junior Member
North Carolina

My mother recently died with a small life insurance policy. When she established the policy I was 9 years old, and so she named her mother (who was set to be my legal guardian incase of my mother's death) as the beneficiary. My father was deceased prior to the establishment of the policy, and my grandmother died a few years after the policy was signed. My mother never formally changed the beneficiary, but she told me on several occasions that as the only child I would receive the policy benefits - no spouse or mother. However, now the insurance company will only pay to the estate contrary to my mother's intent and contrary to the purpose for establishing the life insurance policy. If the insurance benefits are paid to the estate, a large estate must be filed, and there will not be any money left in the estate after creditors are notified. There is no will and no other named or contingent beneficiaries. Does anyone have any advice? Can the insurance company change the policy benificiary from the estate (default) to the sole heir? Can a claim in court force the insurance company to pay the benefits to me?
 


Betty

Senior Member
You can talk to a lawyer - however, many life ins. companies have in their policy provisions or by co. policy/practice will pay the proceeds to the insured's estate if there is no primary or contingent beneficiary living at the insured's death. This is apparently the case here. It was your mother's responsibility to change the bene.
 

ShyCat

Senior Member
Since this life insurance policy was owned by your mother, it would have been included in her gross estate (for purposes of calculating estate taxes) even if you had been named as the beneficiary.
 

Dandy Don

Senior Member
Did your grandmother leave a last will and testament and was it probated in court? If so, then look at her probate file and contact the executor of HER estate (if the executor is still living) and ask the executor of your GRANDMOTHER's estate to ask the insurance company to make the check payable to the GRANDMOTHER's estate (it might legally be payable to her estate even though she is deceased) so that the executor can then distribute it to your grandmother's heirs and it is doubtful that creditors would have any claim on that. What is the policy worth? You didn't say (and maybe the insurance company didn't specify) whether it is the insurance company's intention to pay the money to your MOTHER's estate or not (I'm assuming they told you they would be paying your mother's estate).

If your grandmother did not have a will that was probated, consult with an attorney to see if you should open up probate on your grandmother's estate just for the purpose of claiming this money.

DANDY DON IN OKLAHOMA ([email protected])
 

Betty

Senior Member
She can talk to a lawyer & ask the above but that probably isn't what the policy provisions provide for since they are it seems planning on paying it to the insured's estate. At the major co. I worked for, we would pay it to the insured's estate if no bene was living (not go back & pay it to the estate of the bene who is deceased).
 
Last edited:

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top