How can a guardian collect life insurance proceeds for a beneficiary under guardianship in North Carolina?
Detailed Answer
When a life insurance policy names a ward under guardianship as the beneficiary, the guardian must follow clear steps to collect those proceeds for the ward’s benefit. Under North Carolina law, the guardian holds the authority to manage the ward’s property, including any insurance proceeds. To collect these funds, a guardian should:
- Obtain Certified Letters of Guardianship. Secure certified copies of the Letters of Guardianship issued by the clerk of superior court. These letters prove your authority to manage the ward’s assets.
- Gather Required Documents. Reach out to the insurance company and request their claim package. Typically, insurers require:
- A certified copy of the insured’s death certificate.
- Certified Letters of Guardianship.
- Completed claim forms provided by the insurer.
- Seek a Court Order if Needed. Some insurers demand a court order directing payment to the guardian. If so, file a simple petition with the clerk of court to obtain that order.
- Submit the Claim to the Insurer. Send the completed forms, Letters of Guardianship, death certificate, and any required court order to the life insurance company’s claims department.
- Deposit Proceeds in a Guardianship Account. Once the insurer issues payment, place the funds in a dedicated guardianship account. Under North Carolina General Statutes § 28A-12-3 (ncleg.gov), a guardian must safeguard all personal property of the ward.
- Maintain Records and File an Accounting. File an inventory of assets and an annual accounting with the clerk as required by N.C.G.S. § 28A-14-1 (ncleg.gov). This report details how you managed and spent the ward’s funds.
Following these steps ensures you collect life insurance proceeds in compliance with North Carolina law and protect your ward’s financial interests.
Key Considerations
- Beneficiary Designation: Confirm the ward is the named beneficiary. If no beneficiary exists, proceeds pass under intestacy rules.
- Insurer’s Documentation Standards: Each company sets its own requirements. Request their list of needed documents early.
- Court Approval: When insurers require a court order, prepare and file the petition promptly.
- Account Management: Keep proceeds in a separate guardianship account. Never mix ward funds with personal assets.
- Statutory Compliance: Follow all inventory and accounting duties under Chapter 28A of the North Carolina General Statutes (Chapter 28A).
Collecting life insurance proceeds for a ward under guardianship involves clear communication with the insurer and strict compliance with court and statutory requirements. Proper handling of these funds helps secure your ward’s financial future.
Next Steps
If you need guidance on claiming life insurance proceeds or managing guardianship property in North Carolina, contact Pierce Law Group. Our attorneys have extensive experience in probate and guardianship matters. Email us at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation. Let us help you protect your ward’s interests today.
