Life Insurance Probate Dilemma

Summary

Shawn Walker, the beneficiary of his deceased mothers life insurance policy, is facing a dilemma. His mother left no will and had significant medical debt. The life insurance company is requesting proof of his role as executor or administrator, which he can only obtain through probate. However, his probate lawyer advised against initiating probate due to the potential for lawsuits related to his mothers debt. The life insurance policy is within the contestability period, which allows the insurance company to investigate and potentially deny claims if they find misrepresentations on the policy application. The insurance company has been obtaining health records, suggesting they

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My mother passed away 10 months ago. I'm am her legally appointed beneficiary. Her life insurance policy hasn't payed me back for funeral expenses. I was told I need legal documentation that I am the administrator, as she didn't have a will. I can only get that through probate, however my probate lawyer advised me not to start probate yet, as my mom accrued a lot of debt before she passed and is being threatened with being sued. As there is no other siblings and my dad passed away years before she did, he wants us to sent back all of her medical bills that are threatening to sue her back and let them know that she is deceased. The issue is her life insurance policy will no go forward without probate and proof that I'm the executor or administrator. I'm in a loop I don't know how to get out of, cos I need my money paid back and I'm afraid that I'll lose my mother's inheritance due to debt...
What state are you currently residing in, ****? This information will help me provide you with the most accurate legal advice.
Arkansas
What is the name of the life insurance company?
Omaha mutual
What is the total amount of your mother's debt?
Estimated at over $*,*. Haven't done a full tally.
What is the estimated value of your mother's life insurance policy?
$*,*
What is the total amount you spent on funeral expenses?
Approximately $*
What is the reason your probate lawyer advised you not to start the probate process yet?
To try and avoid her being sued for her debt. Her being sued isn't official yet, it's been threats
Have you contacted the life insurance company about your situation and their requirements for releasing the funds?
Would like to get back in contact with whoever- phone refreshed accidentally
I'm here to help. Can you please clarify what specific legal information you need regarding your mother's life insurance policy and the probate process?
That I'm the administrator or executor
What specific duties or responsibilities are you unsure about as the administrator or executor of the estate?
I'm the beneficiary, she left no will so I'm neither the administrator or executor
What state are you in? The rules for intestate succession (when someone dies without a will) vary by state.
Arkansas
As the beneficiary in Arkansas, without a will, you'd follow intestate succession laws.
- Spouse inherits entire estate if no descendants
- If descendants, spouse and descendants share the estate
Is there anything else I can help with?
I'm told I have to get legal documentation that I'm the administrator or executor, which I'd have to go through probate for. The probate person I went to advised waiting since she accrued so much debt and is being threatened with being sued. He wants to threats to die down before initiating probate court.
Who is threatening to sue and for what reason?
Countless medical bills. Her health had her in and out of hospitals. Had a ludicrous amount of health problems.
What is the total estimated amount of your mother's medical debt?
Haven't done a tally, but easy to assume over $*,*.
What is the estimated value of your mother's estate, excluding the life insurance policy?
$*,*
What is the value of the life insurance policy?
$*,*
What is the name of the life insurance company?
Omaha mutual
What is your main concern regarding the life insurance policy and the probate process?
The fact that I'm adviced against starting probate, but her life insurance is hounding me to get verifiable proof that I'm the administrator or executor of her estate, of which I can't get without probate. Can't start probate cos of her debt.
What has the life insurance company specifically asked for as proof of your role as administrator or executor?
So I can obtain medical records for them
What specific medical records is the life insurance company asking for?
Not specified
What is the reason the life insurance company is asking for your mother's medical records?
Not entirely sure
What did the life insurance company say when you asked why they need your mother's medical records?
They weren't transparent, just that they needed that information to go forward so they can get whatever medical information they need.
What was the cause of your mother's death? This could be relevant to the life insurance company's request for medical records.
Heart attack
Did your mother's heart attack occur within the contestability period of her life insurance policy?
She had applied for it for quite a few months before death
Did your mother disclose her health issues when she applied for the life insurance policy?
I believe she did some of her health issues, but easy to assume not all of them cos she had so very many things wrong.
Did the life insurance company mention anything about a contestability period or policy investigation?
Comtestablilty meaning?
The contestability period is a timeframe, usually two years after a life insurance policy is issued, during which the insurance company can investigate and deny claims for death benefits if they find misrepresentations on the policy application.
Yes it did mention as such
What was the exact duration of the contestability period mentioned in the policy?
I believe it was a year
Did your mother pass away within that one-year contestability period?
Unfortunately yes
I'm sorry for your loss. Did the life insurance company mention anything about a policy investigation or denial of claim due to the contestability period?
Haven't mentioned it to my knowledge
What was the date of your mother's death and the date the life insurance policy was issued?
She passed away December * of *. I believe she started her life insurance around February, I can't remember.
Can you provide the exact date when the life insurance policy was issued? This is crucial to determine if the policy falls within the contestability period.
I cannot without having to dig through a lot of paperwork.
I understand that it might be a hassle, but could you please find the exact date when the life insurance policy was issued? This information is crucial for your case.
Sorry this could take some time
That's perfectly fine. Take your time. It's important to have accurate information to better understand your situation.
According to my wife, she said it was in February * * and that the contestablilty period was 2 years.
Based on the information provided, it seems your mother's policy falls within the contestability period. Did the insurance company mention anything about an investigation into her health history?
No, but they've spent months obtaining health records, so it'd be easy to assume they are investigating it.
What is the current status of the life insurance claim? Have they denied it or is it still under review?