SPEAK WITH A TEAM MEMBER (770) 920-6030

Download the Georgia Probate Handbook.

Learn Important Probate Essentials, including key things that go wrong in an estate, how to prevent them, and what to do if they happen.

 

    I thought life insurance did not go through probate?

    By
    logos-image logos-image logos-image

    life insuranceI recently received a question from Marietta, Georgia regarding life insurance. In this situation, someone died and that person had named a beneficiary on their life insurance policy. Then, the beneficiary died before the proceeds of the insurance were paid to the beneficiary. What happens to the money?

    Situations like this can get a little complicated because there are multiple steps involved.

    Generally, when a life insurance policy has a beneficiary designation it goes to the named beneficiary without having to go through probate court. It is considered to be a non-probate asset. So, in the situation above, when the first person died, the the life insurance policy should have been paid to the beneficiary. Unless the policy contains an exclusion, upon the beneficiary’s death, the policy becomes payable to the beneficiary’s estate.

    Once the policy is paid to the beneficiary’s estate, it is cash, which is considered a probate asset under Georgia law. At that point the insurance proceeds will go through probate just like any other probate asset. If there is a will, the executor will follow the terms of the will. If not, then the estate will be distributed in accordance with Georgia intestacy law.

    Have more questions? We’re Marietta, Georgia probate attorneys and we’re here to help. Contact us to schedule your free consultation.

    Disclaimer: The information above is provided for general information only and should not be considered legal advice. Legal advice is specifically tailored to your particular situation. Please contact our office to receive specific information advice about your situation.

    Related Topic:  What is an Interim Distribution?
    MORE FROM OUR BLOG

    After a loved one passes away, it is not uncommon to want to begin handling their affairs right away. Often, one of the first things the family will want to access the deceased’s bank accounts. Unfortunately, they quickly learn that the bank will not speak with them or give them any information, l...

    What happens if it is discovered that the deceased had dementia when the Will was created? Does that mean that the Will is automatically invalid or that the Probate Court will not accept it?  We will discuss these questions in this post. My name is Erik Broel & I am the founder & CEO of ...

    When can the Estate cover attorney's fees?  This is a common question with a somewhat complicated answer.  We’ll cover the basics in this post. My name is Erik Broel & I am the founder & CEO of Georgia Probate Law Group. At our firm we help families who have lost a loved one navigate ...

    © 2021 Georgia Probate Law Group by Broel Law, LLC. All rights reserved.