Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in Michigan for guidance on your specific situation.
Detailed Answer
When a decedent’s life insurance policy names no beneficiary or the named beneficiary predeceases the insured, Michigan law directs that proceeds become part of the decedent’s probate estate. Under MCL 700.2801, “unless a contrary intention appears in the policy, a contract for life insurance . . . may be made payable to the insured’s estate.” See MCL 700.2801.
To enforce distribution, the personal representative (PR) must first open probate and obtain Letters of Authority from the probate court. The PR then presents to the insurer:
- Certified death certificate;
- Copy of the insurance policy;
- Letters of Authority or proof of appointment as PR.
If the insurer refuses to pay or disputes entitlement, the PR may file a petition in probate court to compel payment. The court can order the insurer to deposit proceeds into the estate’s account. Once funds are in the estate, distribution follows Michigan’s intestate succession rules under MCL 700.2111 et seq. See MCL 700.2111. Heirs receive shares according to their relationship to the decedent (spouse, children, parents, etc.).
In contested situations—such as multiple claimants or heir disputes—the PR can request a judicial determination. The probate court has authority to resolve conflicts and enforce a clear distribution plan. Parties may also agree to mediation or settlement to speed resolution and reduce costs.
Helpful Hints
- Locate the original insurance policy and any amendments before opening probate.
- File the claim with the insurer promptly—many policies impose a time limit.
- Retain copies of all correspondence and proof of delivery when dealing with the insurer.
- Understand Michigan’s intestate succession order to anticipate heirs’ shares.
- Consider alternative dispute resolution if beneficiaries contest distribution.
- Keep detailed estate accounting to satisfy court reporting requirements.