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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.

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    I'd post this question on law.stackexchange.com. Also add the country and state code. Sorry for your loss. – Pete B. Jul 5 '16 at 16:06
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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.

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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!

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    I disagree: wills-probate.lawyers.com/wills-probate-basics/…. Clearly states: While life insurance proceeds usually avoid probate, there are some rare exceptions: If no beneficiaries are named – Pete B. Jul 5 '16 at 16:05
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    Yikes, you may be right. I didn't realize the rules were different with no beneficiaries. Although the insurance company didn't issue a check to the probate court, it was already issued to OP. He still might be ok, but yeah, maybe I should downvote my own answer! I'll leave it for now. – Rocky Jul 5 '16 at 16:15
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    The OP is best served seeking professional advice. More so if the son had a substantial amount of debt in relation to his estate. – Pete B. Jul 5 '16 at 16:19
  • It will also depend on the value of the total estate. Some states (in the US) have a dollar figure, below which no probate is required. For example, Connecticut has a $40,000 limit – Peter K. Jul 5 '16 at 16:24
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    ok, my response is edited even though it's still not much of an answer. these are good comments and deleting my answer would have removed them. – Rocky Jul 5 '16 at 19:25

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