What happens to a life insurance policy when the account holder passes away?

My mother took out a life insurance policy on me (she was the policy owner, but I was the insured). After she passed away, I kept receiving dividend distribution checks for years.

Are there any legal or tax issues with me continuing to receive these distributions even though she was the policy owner? Should I be doing something to officially transfer ownership?

Wouldn’t the checks have been issued in your mom’s name? How were they being cashed?

You’ll likely need to get ownership transferred to yourself officially.

Avery said:
Wouldn’t the checks have been issued in your mom’s name? How were they being cashed?

You’ll likely need to get ownership transferred to yourself officially.

Good question. I’ll have to follow up on that. I do know the insurance company just sent me ownership transfer forms.