Maintaining Insurance During the Probate Process

September 6, 2019

When someone passes away, it may affect the variousinsurance policies in place. Administering someone’s estate typically takesseveral months and often much longer for complicated estates. It is importantto maintain the proper insurance during the probate process so that thebeneficiaries can rightfully inherit undamaged, unfettered property.

The personal representative of the estate isresponsible for keeping insurance premiums up to date. The homeowner’sinsurance policy protects the home from damage as well as liability protectionto cover accidents or injuries that occur on the premises. The insurancecompany must be notified of the death of the owner and premiums paid until suchtime the real estate vests with a beneficiary. The beneficiary will then beresponsible for arranging for a new policy as the original policy will not betransferrable.

If the personal representative allows the policy tolapse and then there is a fire, theft or personal injury claim, he or she couldend up personally liable for any losses.

It is also important to make sure any vehicles remainproperly insured during the probate process. Even if the vehicles are notcurrently being driven, they are subject to damage or theft by remainingparked. Cars are assets of the estate and the personal representative cannotknowingly and willingly allow any assets to decrease in value.

Naturally, life insurance terminates on the day ofdeath and no further premiums will be owed. The personal representative canalso terminate any health and long-term care policies after the date of death.If you have questions about any type of insurance that may not be familiar toyou, ask an experienced attorney for advice before terminating any policies.

For more information on estate administration issues in the Greater Baltimore area, please contact Stouffer Legal at 443-470-3599.

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