Disclaimer: This article provides general information and does not constitute legal advice. Consult a Utah attorney for guidance specific to your situation.
Detailed Answer
When no beneficiary is designated on a life insurance policy, Utah law treats the proceeds as part of the insured’s probate estate. Under the default rule in Utah Code § 31A-21-312, benefits without a beneficiary designation pass to the insured’s estate.
1. Initiate Probate
File the original policy and a certified death certificate with the district court in the decedent’s county of residence. Under Utah Code § 75-3-201, the personal representative must notify all heirs and interested parties of the probate proceedings.
2. Inventory Estate Assets
Prepare an inventory that lists life insurance proceeds as an estate asset. Utah Code § 75-3-301 requires submission of a complete estate inventory to the court within the prescribed timeframe.
3. Determine Beneficiaries
If the decedent left a valid will, distribute assets according to its terms. Absent a will, apply intestate succession rules under Utah Code § 75-2-103, which typically awards shares to a surviving spouse and children.
4. Obtain Court Approval
After paying debts, taxes, and administrative expenses, petition the court for a decree of distribution. The court reviews the proposed plan and issues an order directing payment of life insurance proceeds to the estate and subsequent disbursement to heirs or beneficiaries.
5. Distribute Proceeds
Provide the insurer with the certified court order. Once verified, the insurer releases funds to the personal representative, who then distributes the proceeds pursuant to the decree of distribution.
Helpful Hints
- Review the policy’s beneficiary section and insurer records for any overlooked names.
- Obtain multiple certified copies of the death certificate; insurers often require more than one.
- Keep detailed records of all notices sent to heirs and every court filing.
- Monitor probate deadlines closely to avoid penalties or delays.
- Consider hiring a probate attorney to navigate Utah’s procedures efficiently.
- Use mediation or alternative dispute resolution if heirs contest the distribution plan.