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no will or probate

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nolegaleagle

Guest
My father died recently without a will. A life insurance that was claimed by my nephew (the beneficiary) sent a notice to vote the insurance to stocks that was forwarded to my sister. She called about it to tell them he deceased and the insurance said our father was going to be sent a check in the near future because of the insurance conversion to stock. This was not a benefit.
My question is my sister and I are the only survivors. The policy was only $800. Can my sister just deposit this check in her account without any legal implications?
 


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advisor10

Guest
SEPT. 17, 2001

DEAR NOLEGAL:

She could probably deposit it without any legal implications. The problem here is the status of the payment: normally, life insurance policy payments are not considered part of a decedent's estate and therefore would not have to go through probate and whoever the beneficiary is can spend that money however they want to.

However, with the conversion to stock, then the stock technically should be part of the decedent's estate. If there has been no probate action to file anything else regarding the disposition of your father's estate, then someone should file to become personal administrator of his estate (so that this person can claim all his assets and pay any outstanding bills, funeral expenses, etc.) and then divide what money is left over among heirs. The personal representative would have the authority to sell the stock (and of course report it as an asset to the probate court).

SINCERELY,

[email protected]
 

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