Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice tailored to your situation.
Detailed Answer
When a decedent dies without naming a beneficiary on a life insurance policy, West Virginia law treats the policy proceeds as part of the probate estate. The personal representative (executor or administrator) must petition the probate court to include those proceeds in the estate’s assets and distribute them under the state’s intestacy statutes.
1. Open or Amend the Probate Estate
If you haven’t opened a probate estate, file a petition for probate under West Virginia Code §44-1-3 (W.Va. Code §44-1-3). If an estate is already open, file a motion to amend the inventory to include the insurance proceeds as assets.
2. Notify the Insurance Company
Serve a certified copy of the letters of administration (or letters testamentary) on the insurer. Demand payment of the policy proceeds to the estate rather than directly to any individual.
3. File a Petition for Distribution
Once proceeds arrive, the personal representative must file a petition to distribute estate assets. Because no beneficiary exists, proceeds pass under West Virginia’s intestacy laws (W.Va. Code §41-1-3):
- If the decedent leaves a surviving spouse and no children, the spouse receives 100%.
- If the decedent leaves a spouse and children of the decedent and spouse, the spouse receives the first $50,000 plus one-half of the balance; children share the remainder.
- If the decedent leaves only children, the children share equally.
- If there is no spouse or issue, other next of kin inherit under the statute.
4. Notice and Objections
Publish notice to creditors and notify heirs. Allow the statutory period for objections (see W.Va. Code §44-1-13). Resolve any disputes before distribution.
5. Final Distribution
After creditor claims resolve, the court signs an order approving distribution. The personal representative distributes the insurance proceeds to heirs as approved.
Helpful Hints
- Gather the life insurance policy and death certificate before petitioning probate.
- Verify whether any contingent or default beneficiaries exist on the policy.
- Track the creditor claim period (generally four months) to avoid personal liability as a representative.
- Keep clear records of all communications with the insurance company.
- Consider hiring a probate attorney if the estate or family structure is complex.