How Do I Handle a Life Insurance Policy With No Named Beneficiary in North Carolina - Pennsylvania
The Short Answer
In Pennsylvania, life insurance is generally paid to the beneficiary named on the policy, not through a will. If there is no living beneficiary (or the beneficiary cannot take), the proceeds often end up payable to the decedent’s estate under the policy terms—meaning the funds may require estate administration and can become subject to estate debts and claims.
What Pennsylvania Law Says
Pennsylvania treats life insurance beneficiary designations as a non-testamentary transfer—so the policy’s beneficiary designation controls rather than the will. When there is a breakdown in who can receive the proceeds (for example, a beneficiary is disqualified or there is no effective payee), the proceeds may be redirected in a way that can involve the estate and probate-related issues.
The Statute
The primary law governing this issue is 20 Pa.C.S. § 6108.
This statute establishes that beneficiary designations for life insurance (and similar death benefits) are not treated as transfers by will, meaning the policy designation—not the will—generally controls who receives the proceeds.
Why You Should Speak with an Attorney
While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:
- Strict Deadlines: If there’s a dispute over who should receive the proceeds (or whether the estate must be opened), delays can create real risk—especially if other parties make claims or the insurer requires formal authority before paying.
- Burden of Proof: You may need documentation showing there is no valid beneficiary, whether any contingent beneficiary exists, and who has legal authority to receive funds on behalf of the estate.
- Exceptions: Disqualification issues can change the outcome (for example, Pennsylvania’s “slayer” rule can force proceeds to be paid to the estate instead of a named beneficiary). See 20 Pa.C.S. § 8811.
Trying to handle this alone can lead to an insurer refusing to pay, family conflict, or funds being paid to the wrong person—creating potential liability and expensive court involvement later.
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.