My Son passed away and had Life Insurance from work. He did not name a beneficiary. The insurance company sent us some paperwork and we filled it out. The company determined through succession that his Mom and I were the next in line. The money is in an account with our names on it and I was wondering whether that money has to be put in an estate account at the bank.
I just went through this and life insurance money generally does not go into Probate. However, since there was no beneficiary, you will have to ask the probate court. I would advise you not to spend any of the money yet. Make a meeting with the probate court in the county where they lived. You will need the death certificate and the will. If you do not have a will, the estate generally does not need to go into probate. But if it does, then they will definitely let you know what to do with the insurance money. Just make sure you use the estate accounts to pay off all of his debts before you distribute the left over money. The entire process should take an absolute minimum of 6 months.
Sorry for your loss. If the insurance money is now in an account under your names, you
can might be able to withdraw the money. You should put a country tag and state tag on your question.
EDIT: my initial response might incorrect -- see comments below. This is going to be state speficic and the amounts may be relevant. Best to seek professional advice!