Distribution of Property at Death of Owner
Definition - What does Distribution of Property at Death of Owner mean?
Distribution of property upon the death of an owner to surviving family members or other possible recipients is determined by the presence of a will or the interpretation of the will by a court of law. In the absence of a will, the people involved will seek the ruling of a court of law.
In terms of insurance claims, the beneficiary of the deceased initiates the claim by contacting the insurance company and providing it with the necessary documents, the original policy, and a death certificate.
Insuranceopedia explains Distribution of Property at Death of Owner
For real estate or money left behind after a death, the presence of a will dictates its distribution. It is then validated by a probate court. The absence of a will or the presence of an unclear one means that the probate court will determine what to do with the property.
As for an insurance claim after the death of an insured person, it is the beneficiary who acts. The beneficiary's name is listed on the original policy. He or she contacts the insurance company, gets a claim form, fills it out, and mails it along with the original insurance policy and a death certificate. Upon receipt, the company will then provide the amount calculated from the policy to the beneficiary.
If the first beneficiary is dead, then that amount goes to a secondary beneficiary if he or she is named in the policy and only after doing the same course of action mentioned above. If there is no secondary beneficiary, the amount goes to the estate of the insured.
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