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 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.
No. The life insurance proceeds pass outside of the parent's will.
A certificate of marriage is not required to collect on life insurance. Life insurance proceeds will be paid only to the named beneficiary/beneficiaries on the policy. If all beneficiaries are deceased, then the benefit will be paid to the deceased insured's estate.
The life insurance benefit will be paid to the deceased's estate.
If the life insurance policy designates that payment is to be made to a beneficiary other than the deceased or to his/her estate, the proceeds pass outside of the estate and do not become an asset of it. Instead, all other things being equal, proceeds are payable to named beneficiaries. Note, though, that in order to collect, the beneficiaries must file a proof of claim and otherwise provide documentation that the insurer requires (such as a death certificate).
Generally, no. Life insurance proceeds are paid directly to the beneficiary of the policy, if that person is living at the time of the insured's death. If a contingent beneficiary is named, the proceeds are paid to him/her. If the policy specifies that the proceeds are to be paid to the estate of the insured, or if none of the named beneficiaries are living upon the insured's death, proceeds will be paid to the estate. In that event, they become part of the Estate. If the law of the State in which the insured died requires a probate proceeding (usually depending upon the size of the estate), the life insurance proceeds would pass through the estate.
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.
In most cases the proceeds will be paid into the estate.
In the case where no beneficiaries are living when the insured dies then the proceeds of the policy will be paid to the estate of the insured and handled in the manner according to state law. If the insured had a will then that will specify where proceeds go and if no will is found state law will specify. If the insured had a very large estate then some of the proceeds may be subject to estate taxes as they become part of the estate.
It depends. Life insurance proceeds are not subject to income taxes to the beneficiaries, at all. However, if the policy is owned by the deceased person, then those proceeds can become part of the estate and be taxed in that manner. If you want to avoid taxation, completely, make sure that the owner and beneficiaries are different than the subject of insurance. Hope this helps! MyInsuranceXpert
Life insurance is not considered part of an estate and is not available to pay the decedent's bills and debts. Even if there is no money whatsoever to pay bills, the insurance is not part of the estate. The only exception would be if there were no existing named beneficiaries or if the policy is payable to the estate. But even there, keep in mind that it isn't the "insurance" money that is now available to pay the debts. It is "estate" money, because the proceeds were payable to the estate. The Federal government will include life insurance proceeds as part of the gross estate for federal estate tax purposes, but that does not mean they are actually part of the estate.
The estate or actually the executor of the estate is responsible for medical and other expenses as part of the distribution of the estate. After all debts have been paid from the proceeds of liquidation of the estate only then can funds be distributed to beneficiaries. The executor of the estate and beneficiaries of the estate need not pay anything out of their own pocket if the estate cannot pay for the entire bill. But if the expenses are not paid the hospital will certainly come after the estate and any monies that were distributed. Check the terms of the life insurance. If payment is assigned directly to the beneficiaries you may not need disburse funds to the hospital. On the other hand, if the life insurance goes to the estate, the hospital must be paid first if you don't want to end up in court.