Detailed Answer
When a policyholder dies without naming a beneficiary, Texas law treats the life insurance benefit as part of the insureds estate. Under Texas Insurance Code 7110.201, the insurer must pay proceeds into the estate. To enforce distribution, follow these steps:
- Locate the Policy and File Probate: Gather the life insurance contract and any related correspondence. File an application for probate in the county where the insured lived. You can request an independent administration under Texas Estates Code 7401.001 or a dependent administration if you expect disputes.
- Inventory Estate Assets: List the policy and its death benefit under the estates assets. Include the estimated payout value.
- Notify Heirs and Creditors: Provide formal notice to potential heirs and creditors as required by Estates Code 731.002. This step ensures the court can approve valid claims and clear liens.
- Determine Heirship or Will Provisions: If the decedent left a valid will, distribute per its terms. If the decedent died intestate, distribute the proceeds to heirs under Estates Code 7201.001. This statute outlines shares for a surviving spouse, children, and other relatives.
- Petition for Distribution: File a motion with the probate court asking for an order that directs the insurer to pay the proceeds to the appointed executor or administrator. Attach the courts letters testamentary or letters of administration.
- Compel Insurer Payment (if Needed): If the insurer refuses to timely pay, you may file a declaratory judgment action under Texas Insurance Code 7110.101. This lets the court decide the insurers duty to pay the estate.
Once the court issues its order, the insurer must distribute the proceeds as directed. The executor then transfers funds to heirs or beneficiaries under the court-approved plan.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney about your specific situation.
Helpful Hints
- Keep a copy of the life insurance policy and correspondence with the insurer.
- Act quickly to file probate; delays can complicate estate administration.
- Consider independent administration to streamline asset distribution.
- Gather evidence of heirship (e.g., birth certificates) for intestate cases.
- Maintain clear communication with the probate court clerk for deadlines and forms.
- If disputes arise, seek mediation before costly litigation.