Detailed Answer
When a decedent dies without naming a beneficiary on their life insurance policy, insurers generally pay the proceeds to the estate. Under Wisconsin law, specifically Wis. Stat. § 851.30, if no beneficiary survives the insured or no beneficiary was designated, the insurer must pay the proceeds to the insured’s estate. These proceeds then pass through probate and follow the decedent’s will or intestate succession law.
Step 1: Confirm Beneficiary Status
Obtain a certified copy of the decedent’s death certificate and contact the insurance company. Request the policy’s beneficiary designation form and confirm that no valid beneficiary is on file. If the insurer agrees no beneficiary exists, it will treat the estate as the recipient.
Step 2: Open Probate Administration
File a petition for administration in the county probate court where the decedent resided. Under Wis. Stat. § 859.01 and chapters 861–863, the court appoints a personal representative (executor). The representative has authority to collect estate assets, including insurance proceeds.
Step 3: Inventory and Notification
The personal representative must file an inventory listing the life insurance proceeds as an asset. They must also notify heirs and creditors following Wis. Stat. § 859.15 and Wis. Stat. § 859.16. Proper notice ensures potential claimants and beneficiaries can come forward.
Step 4: Pay Debts and Expenses
Before distribution, the representative uses estate funds, including insurance proceeds, to pay valid debts, funeral expenses, and administration costs under Wis. Stat. § 859.30.
Step 5: Distribute Remaining Proceeds
After debts are settled, distribute the remaining proceeds under the decedent’s will. If no valid will exists, follow Wisconsin’s intestate succession under Wis. Stat. § 854.01. Typically, assets pass to surviving spouse, children, parents, or next of kin in defined shares.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Wisconsin for guidance specific to your situation.
Helpful Hints
- Review all life insurance policy documents promptly after death.
- Keep certified copies of death certificates for each insurer.
- File probate petitions as soon as possible to avoid statutory delays.
- Maintain clear records of communications with insurers, creditors, and beneficiaries.
- Consult an attorney when complex family or creditor claims arise.