Life Ins. & Probate

[gaems143]

What is the name of your state (only U.S. law) ? Georgia

My mother recently passed away. I was left as beneficiary of her life ins. policy. She lived in an apt. on my property and there were only two cars in her name. She had nothing else of value and the kids (3) are not fighting over anything but she does have a boat load of medical bills from the cancer. Do I have to file anything legally in probate or can I skip it and just file the life insurance? We would rather keep the life ins. vs. the cars.

Thanks.

 

[justalayman]

the life insurance is "outside" of probate, meaning, it is not involved with any probate proceedings and not affected by the condition of the estate. (unless the bene was the estate. then it becomes part of the estate just like anything else owned by the decedent.)

I have not looked up probate law in your state but many states have a "small estate" or administrative process available for estates that do not have huge assets and/or real estate. They allow one to settle the estate without a full blown probate. You may need that to deal with the vehicles.

Obviously, if there is no assets in the estate, the debts of the estate are not going to get paid.

In other words; the estate and the life insurance are two seperate and uninvolved situations.

 

[Betty]

Re small estate probate Ga.: Georgia offers a probate shortcut for "small estates." This makes it easier for survivors to transfer property left by a person who has died. You may be able to transfer property using the small estate probate shortcut -- saving time, money, and hassle.

You can use the simplified small estate process in Georgia if there is no will, **the estate owes no debts**, and all heirs have amicably agreed on how to divide the property. Ga. Code Ann. §§ 53-2-40 and following.

Since your Mother has medical debts/bills, you might not be able to go the small estate route.