Detailed Answer
When a decedent holds a life insurance policy without naming a beneficiary, New York law treats the proceeds as part of the estate. Under EPT §5-4.2(b), insurance proceeds with no designated beneficiary pass to the estate. The executor or administrator must petition Surrogate’s Court for probate. Once appointed, the personal representative gathers all assets, including the insurance contract.
Next, the representative files an inventory with the court that lists the policy proceeds. The court issues Letters Testamentary or Letters of Administration, authorizing the representative to collect payment. The insurer then issues the proceeds to the personal representative.
After collection, the representative distributes the funds under New York’s intestacy laws. Those rules appear in EPT §4-1.1. The representative prepares a final accounting and submits it under SCPA §1404. Once the court approves the accounting, the personal representative distributes the proceeds to the decedent’s heirs according to statutory shares.
Helpful Hints
- Review the insurance policy for payout terms and definitions.
- File your probate petition promptly to avoid delays.
- Notify all potential heirs and creditors per SCPA requirements.
- Keep detailed records of all communications and disbursements.
- Consider an interim accounting if distributions are large or complex.
- Consult with a probate attorney to ensure compliance with court rules and timelines.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.