[WSBAPT] Can a small estate affidavit be used to claim a life insurance policy with no living beneficiary designated?

[John J. Sullivan, Esq.]

I have used Small Estate Affidavits where the beneficiary, or default beneficiary is the estate. 

 

I’ve only once run into a situation that named the heirs directly, rather than the estate, as the default. It was an IRA where the mail order bride in Romania had divorced the decedent before he died. The problem was the decedent had been estranged from the rest of his family back East for over 30 years. 

 

I think the attorneys for the insurers/IRA custodians think they’re doing a favor to protect the proceeds from creditor claims. But it can be a major headache, and result ultimately in escheat.

 

John J. Sullivan

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jane Bitz
Sent: Friday, July 27, 2018 2:11 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Can a small estate affidavit be used to claim a life insurance policy with no living beneficiary designated?

 

The last one of these I dealt with, the policy itself said that it should be paid to the “next of kin” under the State law of the decedent’s domicile. We had to provide death certificates for the decedent’s mother and brother who were the named primary and secondary beneficiaries and a copy of her obituary showing her living and deceased siblings. The policy proceeds then went to the decedent’s surviving sisters and her nieces & nephews by representation for the deceased siblings shares. This was a very old Massachusetts Life policy now owned by MetLife.

 

Jane.

 

 

Jane G Bitz

Of Counsel

Wolff, Hislop & Crockett, PLLC

12209 E Mission, Suite 5

Spokane Valley WA 99206-4824

(509) 927-9700; FAX (509) 777-1800

jbitz at whc-attorneys.com <mailto:jane at jbitzlaw.com> 



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From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>  <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of Eric Reutter
Sent: Friday, July 27, 2018 12:27 PM
To: wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> 
Subject: [WSBAPT] Can a small estate affidavit be used to claim a life insurance policy with no living beneficiary designated?

 

Hi all,

 

I encountered an issue for which I have not yet found a good answer. 

 

Simple and common situation: decedent passed away with a small (well under $100,000) life insurance policy for which no living beneficiary was named (all beneficiaries listed had predeceased the decedent). I haven't been given the policy yet, but I am making the assumption that the policy will say that the death benefit is now payable to the estate by default.

 

My question is, assuming all the threshold criteria of the small estate affidavit are met (under 100k, debts disposed of, etc...) can the small estate affidavit be presented to the life insurance company as authority for them to distribute to the surviving family member? (Thereby avoiding the need to open probate for just this small insurance benefit)

 

I am familiar with this small estate procedure when it comes to a bank account, but less so with a life insurance contract that likely defaults to being payable to the estate if no living beneficiary is named.

 

If anyone has experience using a small estate affidavit with a life insurance death benefit, I would be very grateful to hear you thoughts!

 

Best regards, 

 

Eric Reutter

J.D., LL.M. Taxation

Lake Hills Estate Planning, PLLC 

10900 NE 8th Street, Suite 1000 <x-apple-data-detectors://3/0> 

Bellevue, WA 98004 <x-apple-data-detectors://3/0> 
www.lakehillsestateplanning.com <http://www.lakehillsestateplanning.com/> 

 <tel:(425)%20298-5895> (425) 298-5895

 

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