Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When a life insurance policy in Massachusetts lacks a named beneficiary, the insurer must pay the proceeds into the decedent’s probate estate. Under Massachusetts General Laws Chapter 190, Section 2, unpaid proceeds become part of the insured’s estate and follow normal probate administration (MGL c.190 §2).
Here’s how to enforce distribution:
- Open a Probate Case: File a petition in the Probate and Family Court in the county where the decedent lived. If the decedent left a will, present it for probate. If no will exists, request letters of administration for an intestate estate.
- Inventory the Estate: Include the life insurance policy and expected proceeds on the estate inventory. Submit the inventory to the court within the required timeframe (usually within 90 days of appointment of the personal representative).
- Notify Creditors and Heirs: Serve notice to potential creditors and distribute a notice to all heirs and next of kin under the intestacy rules.
- Determine Heirship: If intestate, distribute according to Massachusetts Uniform Probate Code intestacy rules. For example, under MGL c.190B §2-101, a surviving spouse may receive the first $100,000 plus half the balance; children share the remainder.
- Petition for Distribution: File a petition for formal distribution once the personal representative discharges liabilities and obtains court approval of the inventory and accountings. The court will issue an order approving the allocation of assets, including insurance proceeds, to beneficiaries or heirs.
- Request Court Instructions if Disputed: If interested parties disagree on how to allocate proceeds, petition the court under MGL c.190B §3-908 (petitions for instructions) to resolve disputes.
- Collect and Distribute: After the court issues its order, request payment from the insurance company by providing a certified copy of the distribution order. The insurer can then safely disburse proceeds to the estate’s personal representative, who distributes funds to heirs or devisees as ordered.
Helpful Hints
- Keep copies of all filings and notices served to interested parties.
- Review your life insurance policies periodically to avoid unintentional intestacy.
- Consult Probate Court local rules for specific filing deadlines and forms.
- Consider mediation if heirs dispute distribution before filing formal petitions.
- Request certified copies of court orders for each financial institution or insurer.