Detailed Answer
When a decedent fails to name a beneficiary on a life insurance policy, New Jersey law directs the insurer to pay the death benefit to the insured’s estate. The insurer typically requires a certified death certificate and proof of appointment of an estate representative before releasing funds. Once the insurer acknowledges the estate claim, the personal representative (administrator or executor) must open a probate case in the county Surrogate’s Court. Under N.J.S.A. 3B:3-3, you file a Petition for Letters of Administration or for Probate of a Will. The court then issues Letters Testamentary (if there is a will) or Letters of Administration (if there is no will).
After appointment, the representative inventories all estate assets, including the credited life insurance proceeds. The estate must satisfy outstanding debts, liens and taxes before distributing remaining funds. New Jersey’s intestate succession statute directs distribution when no valid beneficiary exists. If the decedent left a surviving spouse and descendants from another relationship, the spouse receives the first $50,000 plus one-half of the balance, and descendants share the remainder per N.J.S.A. 3B:5-4. If there is no surviving spouse, the entire estate passes to descendants. Absent descendants, assets pass to other next of kin—parents, siblings and so on—under the same statute.
In smaller estates where personal assets total less than $20,000, interested parties may use a Small Estate Affidavit under N.J.S.A. 3B:20-1 to bypass formal probate. Note, however, that some insurers still require court-issued letters before releasing proceeds. Consulting a probate attorney helps ensure compliance with filing deadlines, creditor notice requirements and tax obligations.
Helpful Hints
- Locate the original policy document or declarations page early in the process.
- Request a “No Beneficiary” statement from the insurer to document the absence of a named beneficiary.
- Gather multiple certified copies of the death certificate for the court, insurer and creditors.
- File for Letters of Administration promptly to avoid delays in accessing estate assets.
- Verify the deadline for creditor claims; publish notice in a local newspaper if required.
- Consider a Small Estate Affidavit for estates under $20,000 to streamline distribution.
- Maintain clear records of all communications with the insurer, the court and potential heirs.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney regarding your specific situation.