Succession with life insurance

Succession with life insurance


Money is a touchy subject for many people. However, this remains a subject of the utmost importance, particularly at the end of life. You don't want your loved ones to be responsible for your financial decisions, whether they are good or bad. So you take out life insurance. But what happens when the time comes to claim it? Here is how an estate that includes life insurance unfolds in the blink of an eye.

Liquidation

When a person dies, their material and financial assets are transferred automatically to their estate. It is then necessary to liquidate the succession, or to distribute the contents among the close relations, according to the will of the deceased. To carry out this liquidation, the insured person will choose, during his lifetime, a liquidator, someone who will ensure that the right goods go to the right people. The liquidator will finally follow these different steps not only to carry out a compliant liquidation, but also to claim the life insurance of the deceased.

The different stages of liquidation

Winding-up itself requires a lot of work. Endless exchanges of communications with official and governmental bodies, representations to institutions and much more. We must not forget that the liquidator, through all these tasks, will also have to go through his own mourning. It's not nothing ! But let's take it in stages!

First, you must obtain proof of death, which is issued by the Director of Civil Status of Quebec. And be careful, because neither the death certificate signed by the doctor nor the certificate provided by the funeral home comply with the liquidation procedures.

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Then you have to get your hands on the most recent will. There are several registers that will give you the information. It is also possible that the person, before dying, wrote a document in the presence of witnesses that will serve as a will. If this is the case, it will have to be verified by a notary before proceeding with any steps.

The liquidator must then agree, by registration of designation, to be responsible for the distribution of the deceased's property. He must therefore inform the likely heirs that the succession has been initiated. Then, he must close the bank accounts and then open one in the name of the estate to make the related transactions.

The liquidator will take an inventory of the deceased's property, then file an income tax return before paying debts and dividing the property.

Claim life insurance

Upon death, the liquidator will claim life insurance from the deceased. More specifically, if a deceased person had life insurance, the liquidator must contact the insurer to inform him of the situation.

The insurer has 30 days after receipt of the requested supporting documents (the death certificate, among others) to pay the insurance amount into the "estate" bank account. A very important fact: you must continue to pay life insurance premiums until the claim is made with the insurance company.

For more information on the subject, do not hesitate to contact the InfoPrimes experts who can guide you, no matter the situation.