Detailed Answer
Disclaimer: This article is for informational purposes and is not legal advice. Consult a licensed Tennessee attorney for advice specific to your situation.
1. Situation When No Beneficiary Is Designated
Under Tennessee Code Annotated § 56-7-603 (Tenn. Code Ann. § 56-7-603), if a life insurance policy has no named beneficiary or all beneficiaries predecease the insured, the insurer must pay the proceeds to the decedent’s probate estate. Once in estate hands, proceeds distribute according to a valid will or, in the absence of a will, under Tennessee’s intestate succession rules at Tenn. Code Ann. § 31-2-102.
2. Opening a Probate Estate
To enforce distribution, file a petition for probate in the county where the decedent resided. Under Tennessee Code Annotated § 30-1-101 (Tenn. Code Ann. § 30-1-101), the court appoints a personal representative—either the executor named in a will or, if no will exists, an administrator chosen by heirs.
3. Petitioning the Court for an Order to Release Proceeds
Next, petition the probate court for an order directing the insurer to pay the estate. Tennessee Code Annotated § 30-2-306 (Tenn. Code Ann. § 30-2-306) governs claims against the estate. Attach a certified death certificate, letters testamentary or of administration, and any relevant policy information.
4. Notifying the Insurer and Submitting Documents
Serve the insurer with the court order and required documents. Insurers typically require a certified copy of letters and a death certificate. Once these are received, the insurer generally must pay proceeds within 60 days.
5. Distributing Proceeds Under Will or Intestacy
After receiving the funds, distribute them per the decedent’s will. If no valid will exists, follow intestate succession as laid out in Tenn. Code Ann. § 31-2-102: first to the surviving spouse and children, then parents or other relatives, in statutory order.
6. Closing the Estate
Finally, prepare a final accounting and petition the court to close the estate. The court reviews receipts, distributions, and expenses, then issues an order to discharge the personal representative and formally close probate.
Helpful Hints
- Gather all policy documents and multiple certified death certificates early.
- Search the decedent’s records to confirm no alternate beneficiary was named.
- Maintain detailed records of court filings, orders, and insurer communications.
- File probate within one year of death to avoid claims against the estate.
- Check local probate court rules for filing deadlines and fees.
- Consider consulting a probate attorney for complex assets or family disputes.