A common question for people seeking probate attorneys is the issue of life insurance proceeds, mutual funds and 401k distributions. These assets more often than not pass outside of the Estate. Typically, the person who passes away sets up a beneficiary on these accounts and this allows for that person or persons to receive the account or policy upon presentment of proper documentation without the necessity of probate. These can include bank accounts and other financial accounts as well as those types of accounts listed above.
This process and these funds typically help with the expenses of burial and hiring of other professionals (accountants and attorneys) to help with the final financial arrangements of the Decedent.
So these accounts are not part of the Estate, meaning that creditors cannot attach to these proceeds because they do not pass through the probate process. They should be distributed in a timely manner after the persons death.
Please contact our office today if you have questions about a life insurance policy and/or beneficiary accounts.