Dec282025
Probate Q&A Series

Who is entitled to inherit the insurance payout if the beneficiary died intestate with no children? – North Carolina

Short Answer

In North Carolina, if the named life insurance beneficiary died before the insured (and there is no surviving contingent beneficiary), the insurance company generally pays the proceeds to the insured’s estate, not to the deceased beneficiary’s estate. The proceeds then pass under the insured’s will, or if there is no will, under North Carolina’s intestate succession rules. A claim “through the deceased beneficiary’s estate” usually fails because the beneficiary must survive the insured to take.

Understanding the Problem

Under North Carolina probate law, the decision point is whether a life insurance beneficiary who died years before the insured can still “take” the payout so that the money would pass through that deceased beneficiary’s intestate estate to the beneficiary’s siblings. The relevant actor is the insurance company paying proceeds after the insured’s death, and the key trigger is the beneficiary’s survival at the insured’s death (and whether the policy names a contingent beneficiary or specifies a different fallback).

Apply the Law

Life insurance is controlled first by the contract (the policy’s beneficiary designations). When the named beneficiary has already died, most policies treat that designation as failed. If there is no surviving contingent beneficiary, the proceeds are usually paid to the insured’s estate and handled through the estate administration process before being distributed to heirs or devisees. If the proceeds land in an estate, North Carolina’s Intestate Succession Act (Chapter 29) controls who inherits when there is no will.

Key Requirements

  • Beneficiary must survive the insured: A beneficiary who died before the insured generally cannot receive the proceeds, so the beneficiary’s estate typically has no claim.
  • Policy controls the fallback: The policy may name a contingent beneficiary or may direct payment to the insured’s estate (or sometimes to the insured’s heirs at law) if the primary beneficiary is not living.
  • Correct intestacy rules apply to the correct person: If proceeds are paid to an estate, the heirs are determined based on that decedent’s family tree (usually the insured’s), not the predeceased beneficiary’s.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The policy named the insured’s child as beneficiary, but that beneficiary died many years before the insured. Because the beneficiary did not survive the insured, the beneficiary’s intestate estate usually does not become entitled to the proceeds. If the policy does not name a contingent beneficiary, the insurer will commonly treat the proceeds as payable to the insured’s estate (or as the policy directs), and then North Carolina’s estate administration and distribution rules control who ultimately receives the funds.

Process & Timing

  1. Who files: A personal representative for the insured’s estate (executor if there is a will; administrator if there is no will) or, for some small estates, an heir using a small-estate procedure. Where: The Office of the Clerk of Superior Court in the county where the insured was domiciled at death. What: Estate opening paperwork to qualify a personal representative, or an affidavit procedure if the estate qualifies under the small-estate rules. When: Timing depends on when the insurer requires estate paperwork to release funds and how quickly the estate is opened.
  2. Insurance claim step: The claimant submits the insurer’s claim forms and death certificate(s). If the named beneficiary is deceased, the insurer typically requests proof of the beneficiary’s death and evidence of who is entitled under the policy’s fallback (often Letters Testamentary/Letters of Administration for the insured’s estate).
  3. Distribution step: Once the proceeds are received into the insured’s estate (if that is the policy’s result), the personal representative pays valid estate expenses and claims as required, then distributes the remaining property under the will or, if there is no will, to heirs under Chapter 29.

Exceptions & Pitfalls

  • Policy language can change the result: Some policies say that if the beneficiary predeceases the insured, proceeds go to the insured’s “heirs at law” rather than the insured’s estate. That can reduce the need for full administration, but it still uses the insured’s heirs, not the predeceased beneficiary’s heirs.
  • Wrong estate focus: A common mistake is trying to open (or reopen) the deceased beneficiary’s estate to claim proceeds. In most cases, the beneficiary never became entitled, so there is nothing for that estate to receive.
  • No contingent beneficiary listed: When no contingent beneficiary exists, the insurer often requires probate authority for payment. Delays happen when family members do not promptly apply to qualify an administrator/executor.
  • Class members and survivorship rules: If distribution is by intestacy, shares among siblings (and descendants of deceased siblings) follow the formulas in Chapter 29 and depend on who survived the decedent.

Conclusion

In North Carolina, when a life insurance beneficiary died before the insured and there is no surviving contingent beneficiary, the proceeds are usually payable under the policy’s fallback provision, commonly to the insured’s estate rather than the deceased beneficiary’s intestate estate. If the money is paid to an estate, North Carolina intestacy law (including the sibling class rules) applies to that estate’s decedent. The next step is to open the correct estate with the Clerk of Superior Court so a personal representative can submit the insurer’s claim package.

Talk to a Probate Attorney

If a life insurance beneficiary died before the insured and the insurance company is requiring estate paperwork or there is a dispute about who should receive the proceeds, our firm has experienced attorneys who can help identify the correct payee and the fastest path through the Clerk of Superior Court process. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.