Detailed Answer

If a Louisiana resident dies owning a life insurance policy without naming a beneficiary, state law directs the insurer to pay the death benefit to the insured’s estate. Under La. R.S. 22:619, “when no person is designated a beneficiary … the proceeds shall be paid to the executors or administrators of the deceased insured.”[La. R.S. 22:619] Once proceeds become part of the estate, they enter probate and follow Louisiana’s succession rules.

Step 1: Open Succession. The executor (or administrator, if no will exists) must file a petition to open a succession in the parish where the decedent resided. The court issues letters testamentary or letters of administration to authorize the estate representative.

Step 2: Notice to Insurer. Provide the insurance company with a certified copy of letters and a death certificate. Cite La. R.S. 22:618, which requires insurers to pay proceeds “promptly” after receiving proof of death.[La. R.S. 22:618]

Step 3: Inventory and Valuation. Include the insurance claim in the estate inventory. The proceeds form part of the estate’s liquid assets and count toward forced heirship shares if minor children or other forced heirs exist under La. C.C. art. 1493.

Step 4: Distribute Under Intestate or Testamentary Succession. If the decedent left a will, distribute according to its terms, ensuring forced heirs receive their lawful shares. If there is no will, distribute under La. C.C. art. 881, which places the surviving spouse and descendants at the front of the line.[La. C.C. art. 881]

Step 5: Enforce Payment. If the insurer fails to pay, file a petition for declaratory judgment or executory process in the succession proceeding. Cite the policy, statutory duty under La. R.S. 22:619, and letters from the court. The court can then order the insurer to release funds.

Helpful Hints

• Gather all policy documents and proof of premium payments.
• Check for handwritten beneficiary designations on the policy.
• File the succession within three years of death to avoid prescription.
• Consult the succession clerk for local filing requirements.
• Keep forced heirship rules in mind if minor children or parents survive the decedent.
• Retain an estate accountant to value proceeds and handle tax considerations.

Disclaimer

This article is for educational purposes only and does not constitute legal advice. For advice tailored to your situation, consult a qualified attorney in Louisiana.