What steps must a guardian take in North Carolina to claim life insurance proceeds for a minor beneficiary?
Detailed Answer
When a minor in North Carolina inherits life insurance proceeds, the appointed guardian of the minor’s estate must follow specific steps under state law. As guardian, you have a duty to secure, manage, and preserve the minor’s assets. The process generally involves obtaining court authorization, gathering required documents, submitting a formal claim to the insurer, safeguarding the proceeds according to court rules, and filing timely accountings with the clerk of court.
1. Obtain Letters of Guardianship
File a guardianship petition with the clerk of superior court under Chapter 35A of the North Carolina General Statutes. Once the judge appoints you, the clerk issues Letters of Guardianship. These letters empower you to act for the minor’s financial interests. See N.C. Gen. Stat. § 35A-1201.
2. Secure a Certified Death Certificate
Obtain a certified copy of the insured’s death certificate from the vital records office. Insurers require this document to verify the claim.
3. Complete and Submit the Insurer’s Claim Forms
Contact the life insurance company to request its beneficiary claim packet. Fill out the insurer’s forms accurately. Attach the certified death certificate and a certified copy of your Letters of Guardianship. Some insurers may also ask for your bond documentation if a bond is required.
4. Post a Guardianship Bond (If Ordered)
The court may require you to post a bond to protect the minor’s assets under N.C. Gen. Stat. § 35A-1202. If the judge orders a bond, secure it through a surety company before disbursing any proceeds.
5. Deposit Funds According to Court Rules
Once the insurer issues payment, you must safeguard the proceeds. If the total exceeds the threshold in N.C. Gen. Stat. § 28A-20-2 (currently $15,000), choose one of these options:
- Open a restricted bank account in the minor’s name as approved by the court;
- Ask the clerk of court to place the funds into the court’s registry.
6. Maintain Records and File Accountings
Keep detailed records of all receipts, disbursements, and account balances. File annual accountings with the clerk as required by N.C. Gen. Stat. § 35A-1215. The court will review your reports to ensure you acted prudently and in the minor’s best interest.
Key Steps Checklist
- Petition for guardianship and obtain Letters of Guardianship (§ 35A-1201).
- Obtain a certified death certificate.
- Complete insurer claim forms with attachments.
- Post a guardianship bond if ordered (§ 35A-1202).
- Deposit proceeds according to § 28A-20-2.
- File annual/final accountings (§ 35A-1215).
Managing a minor’s life insurance proceeds involves clear court authorization, precise documentation, and strict compliance with North Carolina statutes. Pierce Law Group’s attorneys guide guardians through each step to protect the minor’s interests. Contact us for personalized help. Email intake@piercelaw.com or call (919) 341-7055.
