Death settlement from Insurance part of estate?

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Pabby

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Five & a half months ago my daughter was killed by a drunk driver. Because she owned virtually nothing - no home, no vehicle, no savings, etc., and had no will, my atty. said
no need to file probate as she had no estate.
Now I received a message from his assistant that in anticipation of a settlement, likely
about $20,000, that we will have to open an estate, probate, account, etc. after all.
I can't seem to get a straight answer as to why. How would this settlement be part
of her estate? This is Pennsylvania, if it matters. I also don't know if this settlement would be included in PA's Inheritance Tax Return. Thank you for any help, as I've been
unable to find an answer despite three days of searching.
 
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