Can an estate administrator claim funeral expenses from insurance proceeds rather than estate assets? - Florida
The Short Answer
Sometimes—but it depends on who the insurance proceeds legally belong to and whether there was a valid beneficiary designation or assignment. In Florida, life insurance proceeds generally pass outside probate to the named beneficiary and are usually not available for the estate administrator to use or “claw back” for funeral costs unless the policy (or a valid assignment) allows it or the proceeds are payable to the estate.
What Florida Law Says
Florida draws a sharp line between (1) probate estate assets the personal representative administers and (2) non-probate death benefits (like many life insurance payouts) that go directly to a beneficiary. Funeral expenses are typically a high-priority obligation when they are being paid from probate assets, but that does not automatically give the estate administrator control over insurance proceeds that never became estate property.
The Statute
The primary law governing this issue is Fla. Stat. § 222.13.
This statute establishes that life insurance proceeds generally inure to the named beneficiary and are exempt from creditor claims, but if the policy is payable to the decedent’s estate (or to executors/administrators/assigns), then the proceeds become part of the probate estate and are administered under Florida probate law.
Separately, Florida’s probate priority statute places reasonable funeral expenses near the top of the payment order from estate assets. See Fla. Stat. § 733.707 (Class 2, with a statutory cap in many situations).
In your fact pattern—where the funeral home’s records show payment by an insurer and an overpayment refund to an heir, and the funeral home and heir signed assignment/claim forms—those documents may be critical to determining whether the estate administrator has any right to redirect funds or demand reimbursement.
Related reading: Do life insurance proceeds have to be deposited into the estate account during probate in Florida? and What counts as an estate expense and how can an executor get reimbursed in Florida?.
Why You Should Speak with an Attorney
While the statutes provide the general rule, applying them to insurance-funded funeral payments is rarely simple. Legal outcomes often depend on:
- Strict Deadlines: Probate creditor/expense issues and beneficiary disputes can become time-sensitive, and delay can affect leverage and recoverability.
- Burden of Proof: The estate may need clear documentation showing whether the policy was payable to a beneficiary versus the estate, and whether any assignment was valid and what it actually assigned (e.g., a limited right to pay the funeral home versus broader rights).
- Exceptions: Under Fla. Stat. § 222.13, proceeds can become estate property if payable to the estate (or in some cases if a valid assignment changes who is entitled). If proceeds never became estate property, the personal representative may have limited authority to pursue them.
Trying to handle this without counsel can lead to missteps—especially where an heir received a refund, the funeral home submitted assignment paperwork, and the insurer may treat its payment as fully discharging its obligations.
Get Connected with a Florida Attorney
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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.