Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance specific to your situation, consult a qualified attorney in Indiana.
Detailed Answer
Under Indiana law, if a life insurance policy lists no beneficiary or the named beneficiary fails to survive the insured, the insurance company must pay the proceeds to the insured’s estate. Indiana Code section IC 27-1-17-5 requires insurers to pay estate proceeds when no valid beneficiary exists. Once the carrier issues payment to the estate, the funds become probate assets.
To enforce distribution, follow these steps:
- Open a probate estate. File a petition for probate in the county where the decedent resided. The court appoints a personal representative under IC 29-1-4-1.
- Submit proof of claim. Provide the insurer with letters testamentary or letters of administration. The insurer then issues payment to the personal representative.
- Confirm asset inclusion. List the insurance proceeds as an estate asset on the inventory filed with the court under IC 29-1-7-5.
- Distribute under intestacy laws. If the decedent died without a will, distribute proceeds per IC 29-1-2-1. For example:
- If a spouse and children survive, the spouse receives the first $100,000 plus one-half of the balance. The remainder goes to the children.
- If no spouse but children survive, the entire estate goes to children per stirpes.
- Seek court approval. Obtain a court order approving the final distribution. File receipts and waivers to close the estate.
Helpful Hints
- Locate the original policy and any change-of-beneficiary forms before probate.
- Review the insurer’s guidelines for naming beneficiaries.
- Consider a small estate affidavit if the estate falls below Indiana’s threshold and qualifies for simplified administration.
- Maintain clear communication with beneficiaries and the court.
- Keep accurate records of all notices, filings, and distributions.