Disclaimer
This article is for informational purposes and is not legal advice. Consult a qualified probate attorney for advice specific to your situation.
Detailed Answer
1. When Life Insurance Proceeds Become Part of the Estate
Under Connecticut law, if a policyholder dies without naming a beneficiary or if no designated beneficiary survives the insured, the life insurance proceeds default to the insured’s estate. Conn. Gen. Stat. §38a-286(a)(3) (https://www.cga.ct.gov/current/pub/chap_700.htm#sec_38a-286) requires insurers to pay the proceeds to the estate in such cases.
2. Probate Administration and Letters of Administration
To collect and distribute these proceeds, an interested party (usually a surviving spouse or next of kin) must open probate administration in the district where the decedent lived. File a probate petition to appoint a personal representative or administrator and obtain Letters of Administration. See Conn. Gen. Stat. §45a-309 (https://www.cga.ct.gov/current/pub/chap_815f.htm#sec_45a-309) for requirements.
3. Intestate Succession Rules
Once the estate holds the life insurance proceeds, distribution follows Connecticut’s intestacy laws. Conn. Gen. Stat. §45a-436 (https://www.cga.ct.gov/current/pub/chap_815f.htm#sec_45a-436) outlines the order of distribution: surviving spouse, descendants, parents, siblings, and other relatives. Heirs can agree on a division or seek court guidance if disputes arise.
4. Filing a Claim with the Insurer
After securing Letters, submit a formal claim to the insurer, attaching certified Letters of Administration and a death certificate. Insurers typically require a copy of the policy, proof of relationship, and court documents appointing the administrator or executor.
5. Enforcing Payment Through Probate Court
If the insurer refuses or delays payment, the personal representative can petition the probate court for a citation to enforce payment. The court can order the insurer to pay the proceeds to the estate. If necessary, the personal representative may file a breach-of-contract or statutory action in Superior Court to compel distribution.
Helpful Hints
- Keep deadlines in mind: Probate petitions generally must be filed within a year of death.
- Gather all policy documents and beneficiary designations early.
- Confirm who qualifies as an “interested party” before petitioning probate.
- Prepare certified court documents to avoid insurer delays.
- Consider mediation if heirs disagree on distribution under intestacy rules.
- Consult a probate attorney for complex estates or contested claims.