Cant cash Death Claim

[kaabbott]

I recieved a Death Claim Payment on my fathers paid up life insurance policy. There is no designated beneficiary listed on the certificate and the check is made payable to "The estate of my father." I cannot cash it and the insurance company tells me i have to open an estate with the courts? Whats up with that? My fathers been dead for 4 years, and I am the sole survivor. The payment of benefits on the back of the certificate clearly reads if no beneficiary is designated payment will be made to the spouse, then children etc. etc.

 

[Dandy Don]

So contact the insurance company and remind them about their little statement and remind them that you are the sole survivor and politely ask them to reissue the check payable to only you.

Their policy may have changed since they made that statement. If they won't reissue the check, all you need to do is go to the county courthouse probate court and file papers (or hire a probate attorney to do it for you) to open up this estate for probate. Soon after filing, you will receive letters testamentary, and you will need to take a certified copy of that document to any bank and they will allow you to then cash it.

DANDY DON IN OKLAHOMA ([email protected])

 

[justalayman]

If they won't reissue the check, all you need to do is go to the county courthouse probate court and file papers (or hire a probate attorney to do it for you) to open up this estate for probate. Soon after filing, you will receive letters testamentary, and you will need to take a certified copy of that document to any bank and they will allow you to then cash it.

DANDY DON IN OKLAHOMA ([email protected])

But Don, won't this make the funds available to pay any claims against the estate first. As well, if there are any inheritance taxes, this would make these funds subject to them as well.

 

[Dandy Don]

Good point, justalayman. That is why I suggested she try to get the check reissued in her name so she could cash it and keep it out of probate. As of right now we don't know if there are any debts for this estate, and even if there are, I doubt it would eat up the entire check if it was made payable to the estate. Hopefully even if there are debts, there would be enough cash left over to make it nice for the beneficiary. Unless the check is over $2 million, there will be no federal inheritance taxes since that is the amount that is exempted.

 

[nextwife]

She's had four years, why couldn't she simply go file an informal administration (or her state's equivilant)? The life company cannot simply take her word for it that she's the sole heir. If there are no other heirs she could have had this over with a long time ago if she had simply gone and filed herself and completed the probate. Since there are no other heirs and no debts, it should have been fairly simple to accomplish. We "did it ourselves" when my widowed MIL died, leaving her only child as sole heir in her will.

 

[kaabbott]

Thankyou all for your posts. You are right, they cant and shouldnt take anyones word that they are the only heirs, so that would make sense, I suppose as to why they issued the check as they did. I have asked them to review the policy ans reissue me a new check, that is in the works, however it might be time consuming. Is there a fee for filing with the courts? how long does this process take and will it affect my parents trust account which is already in process of collecting other death claims against my mother who passed in July 2006? I did have power of attorney for my mothers finances, but when she passed, they would not let me in to her safe deposit box anymore, would this filing put the original "Trust" in probate? or just that particular check and the safe deposit box? Thanks again for your wisdom. Kathy