How do I access life insurance proceeds for a minor beneficiary under North Carolina probate? - Pennsylvania
The Short Answer
In Pennsylvania, life insurance proceeds usually pass directly to the named beneficiary and are not handled through probate—but a minor generally cannot receive and control the funds outright. In practice, the insurer will typically require payment to a legally authorized adult (such as a guardian of the minor’s estate or a properly appointed guardian named in the policy/beneficiary designation) or to a custodial arrangement, depending on how the beneficiary designation was set up.
What Pennsylvania Law Says
Two separate issues often get confused: (1) whether life insurance is a probate asset, and (2) who has legal authority to receive money for a child. Pennsylvania law generally treats beneficiary designations on life insurance as contractual (non-testamentary), meaning the proceeds typically do not flow through the estate’s probate administration. But when the beneficiary is a minor, the insurer still needs a legally recognized recipient to accept the funds on the child’s behalf.
The Statute
The primary law governing whether life insurance beneficiary designations are subject to probate is 20 Pa.C.S. § 6108.
This statute establishes that beneficiary designations for life insurance (and similar death benefits) are not considered testamentary and are not subject to the rules that govern transfers by will—so they generally pass outside probate to the named beneficiary.
Separately, Pennsylvania law also allows a person designating a life insurance beneficiary to appoint a guardian in the beneficiary designation so the insurer can safely pay that guardian for a minor beneficiary. See 20 Pa.C.S. § 5115.
If the proceeds are held for the child under a custodial arrangement, Pennsylvania’s UTMA rules govern how the custodian may use custodial property for the minor’s benefit. See 20 Pa.C.S. § 5314.
Related reading: Do 401(k) and life insurance beneficiary accounts avoid probate in Pennsylvania? and What happens if there is no named life insurance beneficiary in Pennsylvania?.
Why You Should Speak with an Attorney
While the statutes provide the general rule, applying them to your situation is rarely simple. Legal outcomes often depend on:
- Strict Deadlines: Even when proceeds are “non-probate,” delays can happen if the insurer requires court authority (guardianship) or if there are disputes about the beneficiary designation.
- Burden of Proof: Insurers commonly require clear documentation (beneficiary designation, death certificate, proof of authority for the adult receiving funds for the child). If anything is unclear, payment can be frozen.
- Exceptions: If no beneficiary is properly named, if the beneficiary designation is challenged, or if a guardian was (or was not) appointed under 20 Pa.C.S. § 5115, the path to receiving funds can change significantly and may pull the estate or Orphans’ Court into the process.
Trying to handle this alone can lead to avoidable delays, rejected claim submissions, or disputes over who is legally allowed to receive and manage the proceeds for the child.
Get Connected with a Pennsylvania Attorney
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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.