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Life Insurance and Retirement Accounts
(This page has been changed. Go to Clark County Probate Procedure to learn about Probates in Clark County.)
Life Insurance and retirement accounts are designed, if all goes right, to pass to beneficiaries without probate. For example, John and Mary are married and have three adult children. John's life insurance policy might provide for Mary to be the primary beneficiary which means that if she is alive when John dies, she get the entire policy. It might provide for each of the three adult children to be secondary beneficiaries meaning that if Mary is not alive when John dies, the benefits to one third to each of the adult children. In this example, if one of the three adult children died before John died, and Mary also died before John died, then the benefits would go one third to each of the two surviving children but the one third benefit to the predeceased child would have to be probated. Or, maybe John didn't list a secondary beneficiary and only listed Mary as the primary beneficiary. In that case, if Mary died before John, the entire policy benefit would have to go through probate.
The same thing applies to retirement accounts and IRAs.
One of the problems heirs encounter in dealing with life insurance companies or holders of IRA or retirement accounts is that, say, the adult child of a man who has just died can't call up the life insurance company or retirement account custodian and say, "Who gets the benefits?" The answer will be, "Sorry, due to privacy laws, we can't talk to you unless you can produce Letters Testamentary or Letters of Administration showing that you have been appointed representative of the estate."
The problem with that answer is that if there are living beneficiaries to account for all of the life insurance proceeds and retirement accounts it may not be necessary to undertake a probate or it may be possible to do a simplified probate procedure (Set Aside Without Administration) that doesn't provides for Letters Testamentary or Letters of Administration.
To solve this problem everyone who thinks that they are a possible beneficiary of a life insurance policy or retirement account or IRA can write the relevant company and enclose a certified copy of the death certificate and say something like, "Enclosed is a certified copy of my father's death certificate. I am a beneficiary under his ________; please send me my benefits." If you are indeed a beneficiary the company should pay you although they may send you a bunch of forms to fill out. If you and all other logical heirs fail to collect all of the benefits, they you know that some or all of the benefits must go through probate.