Life Ins. & Probate Court

[CAW_]

If I understand correctly, life insurance does NOT have to go through probate court. Is this correct?

 

[Michael Wechsler]

Life insurance names a beneficiary. It passes separate from that of an estate because the policy names the person whom the proceeds are distributed. It does not require the state to intervene to determine whom that person is -- because the person is named. In probate, typically the distributees (people whom property will be distributed) are not named, e.g. "intestate" situations where there is no will, and the court steps in to ensure the distributees under the law receive the proceeds. There are other circumstances as well but you get the picture.

 

[CAW_]

Disbursement of Life Ins. Funds

Can I ask the probate court at this point to disburse the funds from the life insurance policies (both my Mother's & Father's since they are both deceased [my Father's life ins. went to my Mother]) before my brother (the executor) actually gets the will finally probated? What form do I use or where can I find the "legalease" wordage to write such a letter? Do I have to go to the probate court to ask this or to present a motion for this purpose?
Thank you for your help & replies (I'll get this matter resolved in the end!)

 

[Michael Wechsler]

Life insurance, as I explained, is an instrument that is not part of the estate. It is a contract with a company whereby the company will pay a person upon the death of the insured. One deals directly with the insurance company. It should be straightforward. Are you a beneficiary of the policy?

 

[CAW_]

No, none of the heirs of my Mother's or Father's will were. However, the policies have been paid and are in investments in California with my second brother who is not the executor. The investment due date was Sept. 2002. Therefore the monies from these insurance policies are free and clear to be disbursed. Does the executor have to tell the investing brother to disburse them before they can be released? Or can he do this on his own? Can the probate court release and disburse these funds before the will is probated? The Will states that funds can be disbursed before the Will is probated. The other part of my parent's estate came from property and the family business which my mother owned when my father died. The executor brother who does run the family business is suppose to be paying rent on the property he is using to run the business on. I feel sure he is not paying these to anyone or putting it in an account of any kind. These rents were what my mothr lived on after my father died. Until the Will is probated they still have to be paid. They now go to my mother's estate.

 

[Michael Wechsler]

As I said earlier, life insurance is different than the estate, which may go to probate and subject to the scrutiny of the courts.