Disclaimer: This article is for informational purposes and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
If a policyholder dies without naming a beneficiary, Maryland law presumes the life insurance proceeds belong to the decedent’s estate. Under Maryland Code, Estates & Trusts § 7-402, an insurer must pay proceeds to the personal representative once appointed. These funds then pass through probate and distribute under the intestate succession scheme in § 3-103.
Step 1: Open Probate. File a petition in the circuit court where the decedent resided. Request letters of administration since no valid will exists.
Step 2: Notify the Insurer. Provide a certified death certificate, a copy of letters of administration, and a statement that no beneficiary designation survives. Demand payment of the proceeds under § 7-402.
Step 3: Compel Payment if Necessary. If the insurer refuses to pay, file a motion to compel payment in probate court. Attach the insurer’s written refusal and your letters of administration.
Step 4: Distribute Under Intestacy. Once you receive the proceeds, distribute them to heirs according to Md. Est. & Trusts § 3-103. The default order is spouse, children, parents, siblings, and other relatives.
Step 5: Close the Estate. Prepare a final accounting and petition for discharge. The court will review your accounting and authorize closing the probate estate.
Helpful Hints
- Gather all policy documents early to confirm no valid beneficiary designation exists.
- Verify beneficiary records directly with the insurer to avoid surprises.
- Keep precise records of notices sent to insurers and any responses.
- Consult the probate clerk’s office for local forms, fees, and filing procedures.
- Consider mediation or alternative dispute resolution if heirs contest distribution.