Kansas Executor: Can They Be A Life Insurance Beneficiary?

Life insurance is often the source of the biggest cash benefit to families and loved ones, and the question of who gets the money is an important one. In the state of Kansas, probate is the process of proving a will and deciding what to do with someone's property after they die. An executor is responsible for managing the probate assets of the deceased, but life insurance is considered a non-probate asset, so it is not the executor's responsibility to handle it. However, if the beneficiary of a life insurance policy is the deceased's estate or executor, then probate may be required.

Life insurance is a non-probate asset

The only exception to this is when the insurance policy is payable to the "estate" of the deceased, or when the named beneficiary dies before the policy owner and there is no contingent beneficiary. In these cases, the life insurance funds will be treated as estate assets and will pass into probate with the rest of the deceased's assets and property.

It is important to keep beneficiary designations up to date, especially after major life events such as divorce, marriage, or the death of a loved one. This helps to ensure that the life insurance payout goes to the intended beneficiary and is not subjected to probate.

In Kansas, the probate process is handled by the "District Court". While probate laws vary by state and county, life insurance proceeds generally pass directly to the named beneficiary and are not probate assets.

The role of an executor

Overview of the Role:

The executor of an estate is responsible for overseeing the probate process, which is the legal process of proving a will and distributing the deceased person's assets according to the instructions in the will or in accordance with the law. The role of the executor is to ensure that the wishes of the deceased are carried out and that the estate is settled in an orderly and legal manner.

Key Responsibilities:

• Notifying Heirs and Creditors: One of the first tasks of the executor is to notify the heirs (beneficiaries) and creditors of the probate proceedings. This involves informing them of the death and providing relevant information about the probate process and the estate.
• Locating and Collecting Assets: Executors are responsible for identifying and taking possession of all the deceased person's assets. This includes sources of income such as rental properties, dividends, and interest from financial accounts. They must also collect any debts owed to the deceased.
• Managing the Estate: During the probate process, the executor is responsible for managing the day-to-day affairs of the estate. This includes preserving and protecting the assets, paying ongoing expenses, and handling any income generated by the estate.
• Identifying Heirs and Beneficiaries: Executors must ascertain the details of the heirs, including their names, ages, addresses, and relationship to the deceased. This information is crucial for distributing the estate accurately.
• Handling Legal Matters: The executor is responsible for completing any pending lawsuits in which the estate has an interest. They also handle tax filings and payments, including income taxes, estate taxes, and inheritance taxes.
• Settling Claims and Distributing Assets: Executors must settle any valid claims made by creditors against the estate, which may involve selling estate property to raise funds. Once all claims are settled, the executor distributes the remaining assets to the heirs according to the instructions in the will or as determined by the court.
• Transferring Property Titles: As part of the distribution process, the executor transfers legal ownership of real estate and other titled property to the heirs.
• Working with Professionals: Executors often work closely with lawyers, accountants, and other professionals to ensure that the estate is administered correctly and in compliance with the law.

It is important to note that the role of an executor can be complex and time-consuming, and it is advisable to seek legal guidance when carrying out these responsibilities. The specific steps and procedures may vary depending on local laws and the unique circumstances of each estate.

The probate process in Kansas

• A petition is filed with the court to appoint an executor or administrator for the estate. If there is no will, the court will appoint an administrator.
• Notice of probate must be sent to all heirs and creditors.
• The executor or administrator locates and takes inventory of the assets, as well as determining their value.
• The executor must file a final tax return and pay any taxes owed.
• The executor pays all creditors and any other expenses, providing an accounting to the court.
• The executor files a petition to close probate and distribute any remaining assets to the heirs.

The timeline for probate in Kansas can vary from a few months to more than a year, depending on the complexity of the estate and any issues that arise. Creditors have up to four months to file a claim, which is the minimum amount of time the process can take.

The district court in the county where the deceased resided has the authority to appoint a personal representative for the estate. This is usually the executor named in the will, but if there is no will or the named executor cannot serve, the court will appoint an administrator. The personal representative has substantial fiduciary duties and is responsible for ensuring that all legal requirements are met. It is recommended that they consult a probate lawyer to ensure the correct process is followed.

Kansas law provides for several types of probate, including supervised administration, simplified administration, and informal administration. Simplified procedures are available for small estates that meet specific requirements. These are known as "Refusal to Grant Letters of Administration" or "Determination of Descent" processes.

How to claim life insurance benefits

In Kansas, life insurance is a non-probate asset, meaning it is distributed directly to the chosen beneficiary outside of the probate process. Probate is the process of proving a will, which occurs after someone dies.

If you are the beneficiary of a life insurance policy and need to make a claim, here is a step-by-step guide on how to do so:

Step 1: Get the Policy Details

First, locate the life insurance policy. If you are aware of its location, retrieve it from wherever it is stored, such as a metal filing cabinet or fireproof lockbox. If the policy was kept in a bank's safe deposit box, note that in most states, these are sealed temporarily upon the policyholder's death, which may cause a delay in settlement.

If you are unsure of the policy's details or location, look for common places where important papers are stored. You can also check with insurance agents or human resources personnel if the deceased had life insurance through work or purchased it independently. Even if you don't have the policy number, the insurance company should be able to locate the policy with the insured's name, social security number, and other identifying details.

Step 2: Check for Other Policies

Even if the deceased never mentioned them, there may be other insurance policies in place, such as accidental death and dismemberment policies offered by employers or travel accident insurance if the person was killed while travelling. Check with the deceased's human resources representative or the lender that issued any travel tickets.

Step 3: Contact the Insurance Company

Notify the insurance company as soon as possible after the policyholder's death. Look for a contact name and number in the life insurance policy, or contact the life insurance agent who sold the policy. They can help with the claim process and act as an intermediary with the insurance company. If you don't know the agent's name, contact the insurance company directly, as there is usually a claims number in the first few pages of the policy.

Step 4: Obtain Copies of the Death Certificate

When filing a life insurance claim, you will need a certified copy of the death certificate. The funeral director can help you obtain these copies, which are typically sent by the vital records department in the state where the person lived. There is usually a fee for each copy, and you should receive them within a few weeks of the death.

Step 5: Request Claim Forms

Contact the life insurance company representative to obtain the necessary claim forms. You will need to complete these forms and gather all the requested information. If you need assistance, your insurance agent or estate attorney can help, but you must sign the form yourself.

Step 6: Choose Your Preferred Payment Option

You may have several payment options, including a lump sum, installments, life income, or interest income. Consider consulting a financial advisor before choosing, as settlement options typically cannot be changed. Note that life insurance proceeds are usually not taxable, but if you choose an option that pays interest, that interest may be taxable as income.

Step 7: Submit the Completed Forms

Send back the completed paperwork, including a certified copy of the death certificate, via certified mail or with a return receipt requested so you can track it.

After submitting your claim, you will need to wait for it to be reviewed and accepted or rejected. In most cases, companies will pay out a life insurance claim within a week or two after receiving the paperwork.

Rights of a beneficiary

In the context of life insurance, a beneficiary is a person or entity that the policyholder designates to receive the benefits from the insurance upon their death. Beneficiaries are an integral part of life insurance, as the entire purpose of the insurance is to provide financial security for chosen beneficiaries after the policyholder's death.

In Kansas, life insurance proceeds are considered non-probate assets. This means that they are not distributed through a will but are instead given directly to the named beneficiary outside of the probate process. This also implies that a will cannot be used to change the beneficiaries listed in the policy.

Now, for the rights of a beneficiary:

• Right to Information: Beneficiaries have the right to be informed of their designation as a beneficiary in a life insurance policy. While this may seem obvious, it is important to ensure that beneficiaries are aware of their potential future entitlement.
• Right to Privacy: Beneficiaries are entitled to privacy regarding the information contained in the life insurance policy. This means that the insurance company cannot disclose the details of the policy or the identity of the beneficiaries without their consent.
• Right to Receive Benefits: This is the primary right of a beneficiary. Upon the death of the insured, beneficiaries have the right to receive the insurance benefits as outlined in the policy. This typically includes a death benefit, which is a lump-sum payment, and may include other benefits depending on the specific policy.
• Right to Contest: If a beneficiary feels that the insurance company is not fulfilling its obligations or that the benefits are not being distributed correctly, they have the right to contest the insurance company's actions. This may involve legal proceedings, and beneficiaries can seek legal recourse if they believe their rights are being violated.
• Right to Assign Benefits: In some cases, beneficiaries may have the right to assign their benefits to another person or entity. This means they can transfer their entitlement to the insurance proceeds to someone else. However, this right is subject to the specific terms of the policy and may not be allowed in all cases.
• Right to Seek Support: Beneficiaries have the right to seek support and guidance from the insurance company or relevant authorities if they need assistance in understanding their rights or navigating the process of claiming their benefits.

It is important to note that the rights of beneficiaries may vary depending on the specific laws of the state and the terms of the insurance policy. Therefore, it is always advisable for beneficiaries to carefully review the policy documents and seek legal advice if needed to understand their rights and obligations fully.

Frequently asked questions