Insuring the Estate

Part of an effective estate plan includes thinking about insuring the estate. An executor expressly agrees to insure all estate assets. Here are some things to think about.

If decedent  died owing a vehicle and/or any real estate in their name alone, the estate will likely own these assets. They will need to be insured until they are sold or transferred to someone else.

You should always contact a probate attorney right away to determine what will need to be done to get the assets transferred. Maybe you can begin the probate estate administration right away maybe you can wait. But the lawyer should be asking you about assets and what might need to be insured.

In some cases, the deceased owner’s insurance can be carried over to the executor or the administrator of the estate. This may not be allowed if the home is going to be vacant. In some cases, the homeowner’s insurance may have terminated at the moment of the deceased owner’s death. You will not know the answer to any of these questions until you contact the insurance agent. The probate attorney doesn’t know for sure. Every carrier treats these situations differently.

If you don’t know who the decedent’s insurance agent is, you should look in decedent’s car. Typically, someone has the same insurance agent for their home and auto policies. If the decedent didn’t own a car, you might have to look to see if you can find insurance statements or policies or charges at the decedent’s bank.

But you can’t ever be too careful when it comes to insuring the estate. Remember, an obituary can basically be an advertisement to someone with impure intentions. Don’t leave the assets unprotected.

If you’re charged with administering an estate or trust, contact me today to get started.