Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Under Alabama law, a life insurance policy must have a valid beneficiary designation at the insured’s death. If the insured never named a beneficiary or the designation is invalid, the insurer must pay benefits to the insured’s probate estate, per Ala. Code §27-25-2. Once proceeds enter probate, the personal representative distributes them under Alabama’s intestacy statutes, primarily Ala. Code §43-8-42.
To enforce distribution, follow these steps:
- Open Probate: File a petition in the probate court of the county where the insured resided. The court appoints a personal representative or administrator.
- Secure Letters: Obtain letters of administration. These grant authority to gather assets, including life insurance proceeds.
- Inventory Assets: List all estate assets. Include the policy and any correspondence with the insurer. File the inventory with the court.
- Petition for Distribution: Ask the court to approve the proposed distribution under intestacy rules. Alabama law divides assets among heirs by bloodline or marriage, per Ala. Code §43-8-42.
- Obtain Court Order: After notice to heirs and a hearing, the court issues an order directing distribution of policy proceeds.
- Enforce Against the Insurer: Present a certified copy of the court order to the insurance company. If the insurer delays or refuses payment, the personal representative can file a citation to show cause under Ala. Code §43-2-421 to compel compliance.
Helpful Hints
- Locate and review the original insurance policy and beneficiary form.
- Obtain a certified death certificate immediately after death.
- File probate paperwork in the county where the insured lived.
- Meet all statutory deadlines to file estate claims.
- Keep clear records of insurer communications and correspondence.
- Consider hiring a probate attorney for complex estates or disagreements.