letter of testamentary and life insurance

[rlucas2003]

What is the name of your state? Alabama
My mother has whole life policy life insurances on me and my brother. The policies are with Liberty Mutual. They both have a death benefit of $37,000 and accumulates a dividend and are cash policies. My mother was the owner and benefactor of both policies. She passed away in 2003. I have still been paying on the policies and they are current. The insurance company will not change the benefactor or owner of the policies without a document from the court-letter of testamentary. My mother died penniless and had no will, estate, etc. Will I have to pay $2500 or more to the probate courts to simply change a name on the policies? I am about to say screw it and let the policies lapse. Any advice will be appreciated!?

 

[BlondiePB]

A letter of testamentary costs $2,500.00?

Or was this attorney's fees?

Do the math, rlucas2003.

$37,000.00 - 2,500.00 = $34,500.00 to you and your brother.

 

[seniorjudge]

What is the name of your state? Alabama
My mother has whole life policy life insurances on me and my brother. The policies are with Liberty Mutual. They both have a death benefit of $37,000 and accumulates a dividend and are cash policies. My mother was the owner and benefactor of both policies. She passed away in 2003. I have still been paying on the policies and they are current. The insurance company will not change the benefactor or owner of the policies without a document from the court-letter of testamentary. My mother died penniless and had no will, estate, etc. Will I have to pay $2500 or more to the probate courts to simply change a name on the policies? I am about to say screw it and let the policies lapse. Any advice will be appreciated!?

Don't let them lapse. Call someone else and ask them if a death certificate and an affidavit from all her heirs (whoever they may be: mother, father, brother, sister, son, daughter) saying that no probate was instituted and that she has no debts against her.

Don't give up yet. Sounds like the first person you talked to was an idiot.

 

[anteater]

I think y'all are misinterpreting.

The brothers are the insureds. The mother was the policy owner and the beneficiary. There's no death benefits to be had. Maybe some cash value if the brothers can get the ownership transferred.

Insurance companies I know will require Letters Testamentary and death certificate to change ownership if the owner was the deceased.

There weren't any contingent/successor owners named?

 

[BlondiePB]

I think y'all are misinterpreting.

The brothers are the insureds. The mother was the policy owner and the beneficiary. There's no death benefits to be had. Maybe some cash value if the brothers can get the ownership transferred.

Insurance companies I know will require Letters Testamentary and death certificate to change ownership if the owner was the deceased.

There weren't any contingent/successor owners named?

The only thing that confused me was the cost of the letter of testmentary, which has been cleared up.

$2,500.00 for a letter of testamentary = that person who said so is an idiot.

 

[anteater]

The only thing that confused me was the cost of the letter of testmentary, which has been cleared up.

$2,500.00 for a letter of testamentary = that person who said so is an idiot.

For $2,500, I'll volunteer. Even pay my own travel costs!

OP -- Take a trip down to the county courthouse to inquire about small estates. Likely for a small fee and a few simple filings that you can get the Letters Testamentary.

 

[seniorjudge]

I think y'all are misinterpreting.

The brothers are the insureds. The mother was the policy owner and the beneficiary. There's no death benefits to be had. Maybe some cash value if the brothers can get the ownership transferred.

Insurance companies I know will require Letters Testamentary and death certificate to change ownership if the owner was the deceased.

There weren't any contingent/successor owners named?

I knew exactly what he was talking about. It's the OWNERSHIP of the policy that is in question. BlondiePB was also talking about the eventual benefits to be paid out to someone.

What I was talking about was the ownership of that policy may be considered an asset. That's what my advice was based on.