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Were you appointed the executor of a loved one’s will in Nebraska? If so, consider reading through the Nebraska probate law guidelines to see what you can expect during the process.
In this situation, learning more about your responsibilities as the executor of a loved one’s will is a good idea. You may, for example, not know whether you’ll need to handle life insurance in probate.
Find out whether your executor responsibilities will leave you in charge of your loved one’s life insurance policy below.
To Start, What Is the Probate Process?
The probate process plays out in the aftermath of a person’s death. It involves the following elements:
- Creating an official estate for a deceased person
- Notifying a deceased person’s beneficiaries and creditors about their death
- Paying off a deceased person’s outstanding debts
- Filing taxes on behalf of a deceased person
- Distributing a deceased person’s possessions according to their will (or according to intestate succession laws if they died without a will)
- Closing a deceased person’s estate
Each probate proceeding is slightly different, taking longer in certain instances than others. The length of this process depends on everything from the size of a deceased person’s estate to the estate taxes that might affect it.
What Does an Executor Do During the Probate Process?
Probate can become complicated quickly, especially if a person dies without a will or the surviving family fights over the possessions they left behind. For this reason, an executor is appointed to oversee the process and keep it on track, following all legal precedents to the letter.
The executor is appointed by a deceased person in the terms of their will or appointed by a probate court if a person dies without choosing an executor. Either way, the executor has an important role throughout the process, as they’re in charge of:
- Filing the proper paperwork with a local probate court
- Opening a deceased person’s estate
- Advising beneficiaries and creditors about a person’s death
- Inventorying a deceased person’s assets
- Paying down a deceased person’s debts
- Managing a bank account for a deceased person’s estate
- Distributing a deceased person’s assets accordingly
If you’re appointed the executor of a loved one’s estate, you’ll also have to attend court appearances related to the probate process. It’s a big responsibility across the board.
Does an Executor Handle Life Insurance in Probate in Nebraska?
While you’ll have plenty to worry about as the executor of a deceased person’s estate, one thing you won’t have to be concerned about is handling life insurance in probate. A person’s life insurance policy is considered a non-probate asset so that it won’t come into play during the probate process.
Non-probate assets are any assets a deceased person already arranged to distribute legally without the probate process. A beneficiary designation is included in a life insurance policy, so those beneficiaries named in it will automatically receive payouts from an insurance company.
Not having to handle life insurance in probate will make an executor’s job easier. This can also benefit beneficiaries who won’t have to stress out over whether they’re entitled to the assets listed in a loved one’s life insurance policy.
What Are the Other Non-Probate Assets in Nebraska?
Life insurance policies with designated beneficiaries are common non-probate assets. However, there are also other examples of non-probate assets that executors won’t have to handle, including:
- Living trusts
- Joint bank accounts
- Some types of real estate
Is There Anything an Executor Can Do To Help With a Life Insurance Policy in Probate?
An executor isn’t technically required to do anything when it comes to handling a deceased person’s life insurance in probate. But since they’ll sit at the center of a person’s estate, they might agree to lend a helping hand to ensure a life insurance policy isn’t overlooked.
One simple thing they can do is contact a person’s life insurance company to advise them of their death. This will put the right wheels in motion and help the beneficiaries listed in a person’s life insurance policy collect non-probate assets quicker than they might otherwise.
How Long Does a Life Insurance Payout Take To Arrive?
Every life insurance company takes a different approach to paying out claims. Nebraska requires insurance companies to act quickly, but while some send payouts to beneficiaries immediately, others might take up to a month or two.
The timeline for a line insurance payout can change based on the size of a claim, the number of beneficiaries listed in it, and other factors.
Can Life Insurance Beneficiaries Take Steps To Receive Payouts Quicker?
If life insurance beneficiaries can’t afford to wait long to receive payouts, they can take steps to gain access to the funds they need quicker. For instance, they can apply for probate advance loans through a lender like Rockpoint Probate Funding.
By doing this, you can apply to borrow a certain amount of money in exchange for a percentage of a payout you’re set to receive from a loved one’s estate. It’s an excellent option for those who need money to keep up with expenses while mourning a person’s loss.
Contact Us To Apply for Probate Funding
An executor doesn’t handle life insurance in probate and, therefore, can’t do much to help beneficiaries claim payouts faster in this regard. Rockpoint Probate Funding can assist these beneficiaries in acquiring the probate advance options they need. Call us at (888) 263-8588 to start the probate loan application process.
