How is a Small Estate Distributed in Texas?

Q: Can there be two primary beneficiaries?

Yes, a life insurance policy can have two primary beneficiaries. This allows for flexibility in benefit distribution, as the policyholder can designate multiple individuals to receive the payout upon their death. It's important to clearly outline the percentage each beneficiary will receive in the policy.

Q: Will a life insurance company contact you if you are a beneficiary?

Generally, a life insurance company does not automatically contact beneficiaries. It is usually the responsibility of the beneficiaries to file a claim upon the policyholder's death. However, some companies may reach out if they are aware of the policyholder's passing.

Q: What two conditions must be in place for a contingent beneficiary to receive proceeds?

For a contingent beneficiary to receive life insurance proceeds, the primary beneficiary must be deceased or unable to claim the benefit. Additionally, the policy must not specify that the proceeds revert to the estate of the deceased policyholder. If both conditions are met, the contingent beneficiary can claim the benefits.

Full question:

Life insurance claim -- less than 20,000 benefit amt. -- Here is our situation, my dad pre-deceased my mom by 2 days and he is the insured on this policy. Mom was primary benef. with our sister listed as contingent benef....initially, insurance co. did adv us that the contingent needs to fill out the claimant's form due to the fact that there is nothing to probate in the will...therefore, no administrator is designated. Now, the insurance co. is not honoring the contingent, and we have to set up a small estate or get a summary administration submitted in order to further review our claim. Dad past away 7-11-09 and Mom past away 7-13-09 --- Mom was in a comatose state and could not sign anything if needed....could you please advise us on this procedure from the insurance co.....which route do we take. And, how come another company honored and paid out the life benefit based on our contingent beneficiary because the will was not probated they said they would honor the contingent and this co will not......not getting a straight answer from this insurance company....very frustrated in Texas --- just wanting to pay their bills, especially the medical, per their wishes.......

Category: Wills and Estates
Subcategory: Small Estates Affidavit Law
Date: 04/07/2025
State: Texas

Answer:

In Texas, where the value of the entire assets of the estate, not including homestead and exempt property, does not exceed $50,000, a small estate may be administered by a small estate affidavit. After the affidavit has been approved by the court, the affidavit may be used to collect debts owed to the decedent.

The affidavit is filed with the clerk of the court in the county where the deceased resided. It lists certain information required by statutes, such as all of the known assets and liabilities of the estate, the names and addresses of the distributees, and the relevant family history or other facts concerning heirship that show the distributees' rights to receive the money or property of the estate. Please see the information at the link below for statutes and specific requirements. A link to an heirship affidavit has also been provided.

Once approved by the court, the affidavit may be presented to those who owe debts to the deceased in order to collect the property or money owed. Policies regarding distribution without an affidavit vary by company policy.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens if you have 2 primary beneficiaries?

If there are two primary beneficiaries listed on a life insurance policy, the death benefit is typically divided equally between them unless otherwise specified. Each beneficiary would receive their share directly from the insurance company. It's essential to check the policy details for any specific instructions on distribution.

Can there be two primary beneficiaries?

What happens if there are multiple beneficiaries?

When there are multiple beneficiaries on a life insurance policy, the death benefit is distributed according to the percentages specified in the policy. If no percentages are stated, the amount may be divided equally among the beneficiaries. Each beneficiary must provide the necessary documentation to the insurance company to claim their share.

Will a life insurance company contact you if you are a beneficiary?

What two conditions must be in place for a contingent beneficiary to receive proceeds?

What is the primary beneficiary rule?

The primary beneficiary rule states that the primary beneficiary is the first in line to receive the death benefit from a life insurance policy. If the primary beneficiary is alive at the time of the policyholder's death, they will receive the full benefit unless otherwise specified in the policy. If the primary beneficiary is deceased, the contingent beneficiary may then receive the proceeds.