Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When a life insurance policy lacks a designated beneficiary, the insurer pays the death benefit into the decedent’s estate. You then enforce distribution through Minnesota probate.
1. Statutory Framework
Minnesota law addresses undistributed insurance proceeds. Under Minn. Stat. § 524.2-803, if no beneficiary survives or a designation is missing, proceeds pass to the decedent’s estate. The estate then distributes assets under the intestacy rules of Minn. Stat. § 524.2-201.
2. Open Probate Administration
File a probate petition in the district court of the county where the decedent resided. Use Minn. Stat. § 524.3-101 to request appointment of a personal representative. Provide the decedent’s death certificate and a copy of the insurance policy to the court.
3. Notify the Insurer
After appointment, present the court’s letters testamentary (or of administration) to the insurer. This document proves the personal representative’s authority to collect proceeds.
4. Collect and Allocate Proceeds
The insurer will issue payment to the estate. The personal representative uses court-approved procedures to pay debts and expenses. Any remaining balance follows Minnesota’s intestacy priority:
- Surviving spouse and children (Minn. Stat. § 524.2-201)
- Other next of kin (Minn. Stat. § 524.2-103 to § 524.2-107)
- State of Minnesota if no heirs (Minn. Stat. § 524.2-120)
5. Seek Court Approval
File an inventory and accounting with the court and obtain approval for final distribution to close the estate.
Helpful Hints
- Locate the original policy and death certificate before filing probate.
- Confirm any secondary or contingent beneficiaries in policy documents.
- Check for group policies through an employer or association.
- Keep detailed records of all communications with the insurer and the court.
- Consider a probate waiver for small estates under Minn. Stat. § 524.3-301.
- Consult an attorney if disputes arise among heirs or beneficiaries.