Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Under Pennsylvania law, life insurance proceeds normally pass directly to a named beneficiary. When no beneficiary survives or none is designated, the insurer pays the proceeds to the decedent’s estate. The estate’s personal representative then distributes those funds under Pennsylvania’s probate and intestacy rules.
1. Appointment of a Personal Representative
To claim life insurance proceeds, you must open a probate estate by filing a petition for letters of administration in the Orphans’ Court Division. This process follows 20 Pa.C.S. §§ 3101–3119. Once the court issues letters of administration, the appointee serves as the personal representative of the estate. 20 Pa.C.S. Chapter 31 governs appointment and duties.
2. Notifying the Insurer
After appointment, submit these documents to the life insurance company:
- Certified copy of the death certificate
- Certified copy of letters of administration
- Original insurance policy (if available)
- Completed claim form from the insurer
The insurer reviews the submission and issues payment to the estate’s personal representative.
3. Distribution via Intestate Succession
If no beneficiary is designated, proceeds become estate assets. Pennsylvania’s intestate distribution rules under Title 20 guide the distribution:
20 Pa.C.S. Chapter 21 outlines definitions and order of distribution. Specifically, 20 Pa.C.S. § 2102 sets the priority among surviving spouse, children, parents, siblings, and next of kin.
The personal representative collects estate assets, pays valid debts and expenses, then distributes the net proceeds to heirs according to the statutory order.
Helpful Hints
- Begin probate proceedings promptly to preserve rights and avoid creditor claims.
- Review the insurer’s specific claim requirements and deadlines.
- Obtain and keep certified copies of all court filings and death certificates.
- Provide notice to all potential heirs to minimize disputes.
- Track all communications with the insurer in writing.
- Consider consulting an attorney if heirs contest the distribution or if estate assets are complex.