Do I need to include life insurance proceeds in probate if there is a named beneficiary? - Pennsylvania
The Short Answer
Usually, no. In Pennsylvania, life insurance proceeds paid to a properly named beneficiary generally pass outside of probate and are not administered by the executor as part of the probate estate.
However, certain situations (like a missing/invalid beneficiary designation, divorce-related issues, or disqualification of a beneficiary) can cause proceeds to be redirected and potentially become an estate issue.
What Pennsylvania Law Says
Life insurance is commonly a “non-probate” asset because it transfers by contract to the beneficiary listed on the policy, rather than by a will. Pennsylvania law specifically treats beneficiary designations for life insurance as non-testamentary—meaning they are not governed by the rules for transferring property by will and, in the typical case, do not become part of the estate being administered in probate.
The Statute
The primary law governing this issue is 20 Pa.C.S. § 6108.
This statute establishes that designations of beneficiaries for life insurance (and certain death benefits) are not testamentary and are not subject to laws governing transfers by will—so the proceeds generally pass directly to the named beneficiary rather than through probate.
Why You Should Speak with an Attorney
While the general rule is straightforward, disputes over life insurance proceeds are common, and the “right” answer can turn on small details in the policy and family situation. Legal outcomes often depend on:
- Strict beneficiary rules: If the beneficiary designation is outdated, unclear, or the beneficiary is deceased, the insurer may treat the proceeds differently (sometimes resulting in payment to the estate).
- Exceptions and disqualifications: Pennsylvania has rules that can redirect proceeds in specific circumstances (for example, if a beneficiary is legally disqualified under the slayer/elder abuse provisions). See, e.g., 20 Pa.C.S. § 8811.
- Divorce-related complications: A divorce (or pending divorce meeting statutory requirements) can make a spouse/former spouse beneficiary designation ineffective unless an exception applies. See 20 Pa.C.S. § 6111.2.
Even when proceeds are non-probate, they can still affect the overall estate plan, creditor issues, and family disputes. If there’s any chance of a challenge—or if the insurer is asking for estate documents—talking with a Pennsylvania probate attorney early can prevent delays and expensive litigation.
If you want more background on related scenarios, you may find these helpful: life insurance with no named beneficiary in Pennsylvania and what happens if the beneficiary dies after the insured but before payment.
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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.