Will My Life Insurance Proceeds Go Through Probate?

by Kristen White Blogger Many people named as beneficiaries often wonder how the payment process will be after their loved one dies. One major concern is whether life insurance proceeds have to go through probate. As a policyholder, one may incur costly delays and confuse beneficiaries as they wonder how to deal with the life insurance proceeds. Below is information on instances where the benefits may be subjected to probate process.

 Instances Where Your Life Insurance Proceeds Can Go Through Probate

 If you intend your death benefits to replace your income and cater to your family's needs, it will pay to find insurance companies in Anchorage and start the right process. Normally, you should have your spouse or a child or any other person you deem fit designated as the beneficiary on your policy. In such a way it ensures your life insurance proceeds will not have to go through probate process.  However, there are situations where it may be hard to avoid probate. Some of these reasons include:

• When the deceased has debts, the probate process helps deal with the decedent’s creditors and pays their debts. But if the insurance proceeds bypass the estate, they should be paid directly to the stated beneficiaries.
• Where a beneficiary dies, and there was no co-beneficiary stated on the policy. In this case, the death benefits have to go through probate.
• The beneficiary is a minor at the time of the deceased death. If the insured dies before the minor reaches 18 years of age, any life insurance proceeds will be subjected to probate. According to the law, a minor cannot take up any life insurance proceeds.
• When the main motive for life insurance proceeds is to pay taxes after the insured death
• All the beneficiaries are deceased. Where no beneficiary is alive, the life insurance proceeds go through probate to allow the court to designate the right person to get the benefits.

The main reason that may push one to find insurance companies in Anchorage is to ensure that the family is not financially burdened when it comes to expenses after the insured's death. Such acts may also include the cost of a funeral, burial expenses, etc.

 Are Car Accidents Subject To Probate?

 One of the most commonly raised questions is whether cars are subject to probate in the event of an accident. The answer is that it depends. If a loved one is involved in a car accident and dies, there are questions about probate; the best course of action is to look for the  best car accident lawyer near me to get legal advice on whether one can file two claims. That is the wrongful death claim and whether there might be a probate case. In some cases, when someone dies, their beneficiaries and creditors may have to go through the probate process. Car accident cases involving probate are extremely complex. If your loved one has been involved in a car and lost their life due to someone’s negligence, it’s a good idea for one to consider hiring the best car accident lawyer near me to find the best solution for their unique case. The same lawyer may give legal advice on whether probate is necessary.

Bottom Line

 It’s better to avoid probate. If this is not possible, you can reduce the amount of property subjected to probate. When this is considered, the beneficiary can get their money faster and in a convenient way. Life insurance benefits hardly go through the probate process. But if this happens, one may choose to work with a life insurance lawyer to understand how to go about the process.

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Created on Dec 3rd 2020 01:47. Viewed 237 times.

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