Q: Brother passed, no life insurance beneficiary, lawyer insists on court. Why?

A: When a life insurance policy has no beneficiary designation the terms of the policy will often require that the proceeds of the life insurance go through probate court. In probate court it is required for the person appointed (the probate administrator) to notify heirs at law and any potential creditors including the State of Rhode Island, to pay debts and expenses of the estate including the lawyer, and to close the estate by giving the court an account of the money in, money out, amounts to be distributed to the heirs at law. Usually the heirs at law and any creditors sign releases so that the court knows that everyone is in agreement. Also the paid funeral bill must be filed with the court so that the court knows that the funeral home did not go unpaid. There are additional steps in a case where there is real estate. The estate must stay open for at least six months following the date of the first publication in the newspaper of your appointment as administrator so that any creditors can come forward, and after that the estate can close and the money can be distributed. Probably that is the reason for the delay. I suggest that you give your lawyer a call or send and email about this in order to have clear communication.

A: The reason your lawyer insists on going through court is likely because the life insurance policy, despite not having a listed beneficiary, is still considered part of your brother's estate. Even if you and your siblings agree on how to divide the money, there are legal processes in place to ensure the estate is administered properly and that all legal requirements are met.

The court process is typically needed to formally appoint someone to manage the estate, especially if there's no clear designation of who should handle it. This can prevent future disputes or issues with creditors or other claimants, ensuring that the distribution is legally valid.

Although your siblings and you agree on the division, without court approval, there’s a risk of legal challenges down the road. Your lawyer wants to make sure everything is done properly to avoid potential problems with the estate or the life insurance proceeds later on. It may seem like an unnecessary step, but it helps ensure that all legal requirements are met and the distribution can be finalized smoothly.