Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When an insured fails to designate a beneficiary on a life insurance policy, the insurance company typically treats the policy proceeds as part of the insured’s estate. Under North Dakota law, specifically NDCC § 26.1-36-13, if no valid beneficiary survives the insured or none is designated, the insurer pays the proceeds to the insured’s estate. Once the proceeds enter the estate, they are distributed through probate according to North Dakota’s intestate succession statutes found in NDCC Chapter 30.1-05.
Probate is the legal process for administering a decedent’s estate. The personal representative files a petition in the county where the decedent lived. The court appoints the personal representative and authorizes them to collect assets, pay debts, and distribute the remainder.
Under NDCC § 30.1-05-01 and § 30.1-05-02:
- If the decedent is survived by a spouse and children, the spouse receives one-third of the net estate and the children receive two-thirds divided equally.
- If there is a spouse but no surviving children, the spouse receives the entire estate.
- If there is no spouse or children, the estate passes to other heirs in order: parents, siblings, nieces and nephews, grandparents, and so on. (§ 30.1-05-03)
To enforce distribution, interested parties should:
- Confirm no valid beneficiary exists by reviewing the policy and insurer’s beneficiary records.
- Monitor probate filings and petition the court to appoint an administrator if one is not already in place.
- Submit a claim with the probate court for the share you believe you are owed under intestate succession.
- If the personal representative wrongly withholds proceeds, file a motion in probate court to compel distribution.
Helpful Hints
- Obtain a certified copy of the death certificate to present to the insurer.
- Request a policy review letter from the insurance company confirming the absence of a beneficiary designation.
- Consult the North Dakota Century Code online to verify current statutory provisions.
- File probate forms promptly; North Dakota courts impose deadlines for creditors and heirs.
- Keep records of all probate court filings and communications with the insurer and personal representative.