Hey guys, as the headline says, my mother passed away recently. Her only possessions were a $400k life insurance policy, a car for which she recently obtained a loan, and a small amount of money in a bank account. I am the equal beneficiary on my sister’s life insurance policy, but I am not sure if I need to take any additional steps because my sister is currently incarcerated and will not be released until at least 2028 if parole is approved. If it matters, our location is in Arkansas.
2 Likes
For handling the life insurance, start by getting copies of the death certificate and submit them to the life insurance company. If you and your sibling are listed as equal beneficiaries, the company will send you each a check.
Life insurance payouts aren’t taxed, so you can use the money however you like. For financial advice, you can check out resources like the Prime Directive and the Windfall Wiki.
If someone suggested hiring a lawyer, you’d only need one for probate matters related to your mom’s estate that don’t automatically bypass probate. The life insurance is usually not part of the probate process. The vehicle and bank account details depend on how they were titled, whether there was a Transfer on Death (TOD) designation, or who the named beneficiaries are.
You might be able to get a free consultation with a probate attorney to answer any basic questions you have.
1 Like
Please notify the insurance company about her passing. They will send you some paperwork to fill out. When you can, get a death certificate—it’s a good idea to get at least four copies. I’m really sorry for your loss.