With life insurance, it does not matter if there is or is not a will, because life insurance proceeds are paid directly to the named beneficiary and not to the estate. The named beneficiary obtains a certified death certificate and submits it to the insurance company with the appropriate application form provided by the insurance company. The estate has no rights to the proceeds and would not even be paid to the estate. The only way the estate would be involved is if all named beneficiaries had predeceased the decedent or if the policy names the estate as the beneficiary. In that case, one of the heirs as defined in that state's laws would apply to be the administrator (if there is no will) or executor (if there is a will) and receive the proceeds.
Life insurance with a beneficiary is completely separate from the "estate". If you receive life insurance, it's your. The estate includes bank accounts, homes, cars, etc. not the life insurance
If the insurance policy owner did not specify a beneficiary or the beneficiary is deceased, then the life insurance proceeds go to the insured's estate.
James C. Munch has written: 'Life insurance in estate planning (Little, Brown estate series)' 'Life insurance in estate planning' -- subject(s): Estate planning, Law and legislation, Life Insurance, Taxation
The grantors of an irrevocable trust can take out life insurance on themselves and put it (term or whole life insurance) in the trust in order to pay the estate taxes on their estate assets when they die. This allows the grantor (giver of assets) to leave his estate assets to his children or someone else (beneficiaries) without them having to pay estate tax, or death tax as some call it.
The life insurance proceeds must enter the estate, The Executor of the estate will then determine how, when and to whom it should be dispersed.
An executor cannot sell the life estate. If the sister was given a life estate she has the right to the use and possession of the property for life. The property cannot be sold without her written consent.
If the life insurance has a named beneficiary then life insurance benefits are not subject to debtors claims. If there is no beneficiary or the "estate" of the deceased is the named beneficiary, then loan companies can come after the estate.
The proceeds of a life insurance policy are paid directly to the beneficiaries without going into the estate of the person. The only way that life insurance proceeds become part of an estate is if the the beneficiary is listed as "Estate of the Insured". In this case any expenses of the estate are to be paid out before the heirs receive a share. If there are beneficiaries on the policy, the life insurance company will pay the beneficiaries directly.
There may not be a specified beneficiary still living or even listed on a policy but there is alway an estate. Perhaps you mean they had no will. If the person died "intestate" meaning without a will, the laws of the state where they resided in specifies where the proceeds of an estate go to and how they are divided up. The court will appoint an administrator or executor to handle the assets of the estate. If you have a specified beneficiary your like insurance proceeds will actually bypass probate in most cases and will go directly to the specified beneficiary.
The following are the types of life insurance lawyers in wichita •Life Insurance for Smokers •Life Insurance for NonSmokers •Business Life Insurance •Universal Life Insurance
The life insurance benefit will be paid to the deceased's estate.
No to avoid estate tax penalty