If my parent was supposed to receive money from a deceased relative’s life insurance policy but never did, how can the estate claim that benefit now? – North Carolina

Short Answer

In North Carolina, the estate can only claim life insurance proceeds if the policy (or the policy’s default rules) makes the proceeds payable to the parent’s estate or to the parent’s personal representative. The first step is to confirm who the policy names as beneficiary and whether a contingent beneficiary exists. If the proceeds were turned over as unclaimed property, the personal representative may need to file a claim with the North Carolina State Treasurer’s Unclaimed Property Division.

Understanding the Problem

In a North Carolina probate, can a personal representative collect a life insurance benefit that a deceased parent should have received from a relative’s policy but never did? The decision point is whether the insurance proceeds are payable to the parent’s estate (so the personal representative can collect them during probate) or payable to someone else under the policy’s beneficiary designations. Timing matters because estates often need funds to complete required steps like creditor notice, beneficiary/heir notices, and the inventory.

Apply the Law

Life insurance is usually a “contract” asset that pays directly to the named beneficiary and does not automatically become part of a probate estate. The estate can claim the benefit when the policy makes the estate the proper recipient (for example, the estate is named as beneficiary, or the named beneficiary died and the policy’s terms route payment to the beneficiary’s estate/personal representative). If the insurer already transferred the funds to North Carolina as unclaimed property, the claim generally goes through the State Treasurer’s unclaimed property process rather than through the insurer.

Key Requirements

Proof the estate is the proper payee: The policy’s beneficiary designation (and any contingent beneficiary) must be reviewed to confirm the proceeds are payable to the parent’s estate or personal representative, not to another living beneficiary.
Authority to act for the estate: A court-appointed personal representative must have current Letters (Letters Testamentary if there is a will; Letters of Administration if not) to show legal authority to collect assets for the estate.
Correct claim route (insurer vs. unclaimed property): If the insurer still holds the funds, the claim is made to the insurer using its death-claim packet; if the funds were escheated/turned over, the claim is made to the State Treasurer under the unclaimed property statutes.

What the Statutes Say

N.C. Gen. Stat. § 116B-67 (Claim for property paid or delivered to the Treasurer) – Explains how a claimant can file for unclaimed property held by the State Treasurer and the Treasurer’s timeline to allow or deny a claim.
N.C. Gen. Stat. § 116B-4 (Claim for escheated property) – Allows certain claims to escheated property held by the Escheat Fund, including by heirs or creditors who are not barred from presenting claims.

Analysis

Apply the Rule to the Facts: Because the family is already in a North Carolina probate with a will, the practical path is for the personal representative to (1) identify the policy and confirm the beneficiary language and (2) claim the proceeds using the estate’s Letters if the proceeds are payable to the estate. If the parent was the named beneficiary but died before collecting, the key fact becomes what the policy says happens when a beneficiary is deceased (some policies pay a contingent beneficiary; others may pay the beneficiary’s estate or the insured’s estate). If the proceeds were never claimed and were transferred to the State as unclaimed property, the estate’s personal representative typically needs to claim through the Treasurer’s process instead of waiting on the insurer.

Process & Timing

Who files: The parent’s court-appointed personal representative. Where: (a) with the insurance company’s claims department, and/or (b) with the North Carolina State Treasurer’s Unclaimed Property Division if the funds were reported as unclaimed. What: The insurer’s claimant statement/claim form, plus supporting documents; for unclaimed property, the Treasurer’s claim form and required proof. When: As soon as the personal representative has Letters and a certified death certificate; probate administration tasks (like inventory and creditor notice) often move on set court timelines, so delays in locating/claiming insurance can slow the estate.
Gather the typical documentation: Insurers commonly require a certified death certificate, the original policy (or a lost-policy affidavit), and the personal representative’s Letters if the estate is the payee. If the claim is through unclaimed property, expect to provide proof of authority (Letters) and proof connecting the parent/estate to the reported property.
Deposit and report correctly in the estate: If the proceeds are payable to the estate, they are generally deposited into the estate account and then reflected on the inventory/accountings as an estate receipt. If the proceeds are payable to someone other than the estate, they generally should not be listed as an estate asset (though the personal representative may still need to document what was found and why it is non-probate).

Exceptions & Pitfalls

Policy pays someone else: If there is a living contingent beneficiary (or the policy’s default payout provisions route payment away from the parent’s estate), the probate estate cannot “pull” those proceeds into the estate just because the parent expected to receive them.
Wrong estate: Sometimes the correct claimant is the insured person’s estate (the deceased relative), not the parent’s estate. The policy language controls, so the personal representative should confirm which estate (if any) is the proper payee.
Missing policy information: Families often have the insured’s name but not the policy number or insurer. A practical workaround is to check old mail, bank drafts, employer benefits records, and prior tax/financial files to identify the carrier and policy number before submitting a claim.
Unclaimed property confusion: If the insurer already remitted the funds to the State, repeated submissions to the insurer may not help. The claim usually needs to be redirected to the Treasurer’s unclaimed property process under Chapter 116B.
Probate task overlap: While working on the insurance issue, the estate still must stay on track with probate steps like creditor notice and the inventory. For more on those steps, see what deadlines should be expected after opening an estate and what documents and valuations are required for the inventory and notice to creditors.

Conclusion

In North Carolina, the estate can claim a deceased parent’s “missing” life insurance benefit only if the policy makes the proceeds payable to the parent’s estate or personal representative (or if the proceeds were transferred to the State as unclaimed property and the estate can prove ownership). The practical next step is to obtain the policy/beneficiary designation and submit a death claim with the insurer using the estate’s Letters, or file an unclaimed property claim with the State Treasurer if the funds were remitted there.

Talk to a Probate Attorney

If a life insurance benefit was supposed to be paid but never arrived, probate can stall while the personal representative tracks down the policy, confirms the beneficiary language, and files the right claim. Our firm has experienced attorneys who can help clarify what the estate can collect, what documents are needed, and how the claim fits into the inventory and creditor-notice timeline. 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.