Detailed Answer
Under Iowa law, life insurance proceeds with no valid beneficiary become part of the decedent’s probate estate. Iowa Code § 633.338 states that when a policy lacks a surviving beneficiary, the insurer must pay proceeds to the estate.
- Open a Probate Estate: File a petition for appointment of an executor (with a will) or an administrator (intestate) in Iowa District Court. See Iowa Code § 633.21.
- Inventory Insurance Policies: Disclose all life insurance policies in the inventory filed with the court. See Iowa Code § 633.221.
- Notify the Insurer: Provide the insurer with letters testamentary or letters of administration. Demand payment of proceeds to the estate. If the insurer refuses, file a petition in the same court for an order directing payment.
- Obtain a Court Order: Request a declaratory judgment or order confirming the estate as the beneficiary and directing the insurer to distribute proceeds to the estate.
- Distribute Proceeds: Use proceeds to pay valid estate debts. Distribute the remainder under Iowa’s intestate succession rules. See Iowa Code § 633.210.
Helpful Hints
- Keep detailed records of all communications with the insurer.
- File probate documents promptly to avoid unnecessary delays.
- Consider a small estate affidavit if assets total less than $50,000. See Iowa Code § 633.221.
- Consult an attorney if the insurer disputes coverage or beneficiary status.
- Monitor deadlines for creditor claims to protect the estate’s assets.
Disclaimer: This article provides general information only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.