Close Menu
Switch to ADA Accessible Theme
California Probate, Will & Trust Lawyer
Call Me NOW for your FREE Probate Consultation
California Probate, Will & Trust Lawyer > Blog > Probate > Do Life Insurance Policies Go Through Probate?

Do Life Insurance Policies Go Through Probate?

Probate3

Many people want to ensure that, if they die suddenly, their loved ones are protected and stable. One way a person can give their family extra financial protection if they die is by establishing a life insurance policy. A life insurance policyholder makes regular payments to the insurance company. In return, the insurance company agrees to pay a certain amount to the beneficiary or beneficiaries named under the policy after the policyholder dies. Life insurance can help surviving loved ones with financial struggles after the policyholder dies. Therefore, it is crucial that beneficiaries get the full payout after a life insurance policyholder dies. Fortunately, if a life insurance policy is up to date, it does not have to go through probate. In a case where a policy is up to date, the payout goes directly to the beneficiary or beneficiaries. However, if a life insurance policy is not up to date, it will need to be probated. Below, we discuss in detail when a life insurance policy does not have to be probated and when it may need to be.

When a Life Insurance Policy Does Not Have To Go Through Probate and When It May Need To Go Through Probate

As mentioned already, if a life insurance policy is up to date, it does not have to be probated. But what exactly does this mean? An up-to-date life insurance policy is one where there is a beneficiary or beneficiaries listed on the policy. It is one where the beneficiary or beneficiaries listed on the policy are alive and can be located. If the beneficiary or beneficiaries listed on the life insurance policy are alive and can be located, the policy does not have to go through probate. In such a case, money paid out from the policy can be accessed quickly by the beneficiary or beneficiaries.

If a life insurance policy is not up to date, or in other words, if there is no beneficiary listed on it, the listed beneficiary or beneficiaries are dead, or the beneficiary or beneficiaries cannot be located, the policy must be probated. If a life insurance policy is not up to date, it is considered part of the decedent’s estate and must go through probate. The policy must go through probate so the court can determine who is legally allowed to collect the payout.

Some Challenges That Arise When a Life Insurance Policy Goes Through Probate

There will be administrative headaches if a life insurance policy goes through probate. On top of that, the policy will most likely be used to pay debts or estate taxes. During probate, debts and taxes take priority over the distribution of assets. Therefore, if a life insurance policy is probated and there are debts and taxes to be paid, it may be used to pay the debts and taxes before the remaining money can be distributed to anyone.

Contact the Probate Guy for Legal Help

If you recently lost a loved one, and need help navigating the complex California probate process, contact the dedicated California probate attorney, Robert L. Cohen – The Probate Guy – today to schedule a telephonic consultation.

Southern California Probate Lawyer Serving Orange, Riverside, Anaheim, Whittier & Beyond.

Facebook Twitter LinkedIn
California Probate Attorney
How I Make Probate Easier? MEET ATTORNEY ROBERT L. COHEN

I love being a probate attorney. I love helping people through a very difficult time in their lives with the probate process. My practice focuses solely on probate matters. My job is to complete the probate process as efficiently and painlessly for my clients as possible. I have found that paying the upfront costs of probate adds unneeded stress, so I will advance all of the fees and costs for the probate. No money is required to complete the probate. I will be reimbursed at the end of the case when you receive your inheritance. Call me NOW to discuss your case for free.

SCHEDULE A FREE CONSULTATION
Required Field By submitting this form I acknowledge that contacting the Law Offices of Robert L. Cohen through this website does not create an attorney-client relationship, and any information I send is not protected by attorney-client privilege.
protected by reCAPTCHA Privacy - Terms