Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Arkansas for guidance specific to your situation.
Detailed Answer
Under Arkansas law, life insurance proceeds paid by an insurer to a deceased insured’s estate (when no beneficiary is named or the named beneficiary predeceased the insured) become part of the probate estate and distribute under the state’s intestate succession rules.
1. Insurance Code Governing Unnamed or Lapsed Beneficiaries
Arkansas Code Ann. § 23-66-807 provides that if there is no surviving beneficiary or no beneficiary is named, proceeds “shall be paid to the estate of the insured.” See https://www.arkleg.state.ar.us/ArkansasCode/Title23/Chapter66/Subchapter8/Section807.
2. Initiating Probate Administration
To enforce distribution, an interested party (typically a surviving spouse or next of kin) must open a probate proceeding in the county where the decedent resided. Under Ark. Code Ann. § 28-8-101 et seq., file a petition for administration with the circuit clerk’s office. The court will appoint a personal representative (or administrator) to gather assets, including the insurance proceeds.
3. Collecting Proceeds from the Insurer
Once appointed, the personal representative presents Letters of Administration to the insurer. If the insurer disputes entitlement or refuses to pay, the representative may file an interpleader action under Ark. R. Civ. P. 22 to deposit funds with the court and ask the court to determine proper distribution.
4. Distributing Under Intestate Succession
After collecting the proceeds, the personal representative distributes assets according to Arkansas’s intestate succession statutes. Ark. Code Ann. § 28-9-212 (spouse and descendants), § 28-9-214 (no spouse or descendants), and related provisions govern the order of distribution. Relevant statutes are available at https://www.arkleg.state.ar.us/ArkansasCode/Title28/Chapter9.
5. Final Accounting and Closing the Estate
The personal representative prepares a final accounting showing collection and distribution of all assets, including insurance proceeds. The court reviews the accounting and, if approved, issues an order closing the estate.
Helpful Hints
- Verify with the insurer whether a beneficiary designation exists in their records before petitioning probate.
- Gather certified death certificate and any policy documents to support your claim.
- File probate promptly to avoid delays; Arkansas law gives creditors and heirs set periods to file claims and objections.
- Keep detailed records of all communications with the insurer and court filings.
- Consider mediation or interpleader if multiple parties claim the proceeds.
- Consult Arkansas Probate Rules and the Insurance Code to confirm deadlines and procedures.