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A Real-World Guide for Families Navigating Probate, Insurance Claims & Unfinished Affairs

 

When a parent passes away unexpectedly—and without a will or living trust—their adult children are often left holding not only the emotional weight of the loss but also a confusing web of legal, financial, and administrative issues.

 

At BarthCalderon, LLP, we hear these stories every week. But one recent question captures the situation millions of families quietly face:

“My mother recently passed. I am her only daughter and former POA which has since expired. I was informed by her insurance companies that I can still file claims on her behalf. The payments are addressed to my mother’s estate. She has a bank account with no beneficiary and I was told I will have to go to probate to obtain the funds. She had no will or trust. I’m seeking guidance on how to proceed.”

This scenario is common—and completely avoidable. But when you’re already in it, you need clarity, not theory. Let’s break down what actually happens and what families must do next.

 

Case Study: Emily’s Road Through Probate

 

To bring this to life, let’s step into the shoes of “Emily,” an only child who just lost her mother, Sandra.

 

Like many families across the U.S., Sandra had:

 

• No will
• No living trust
• A couple of insurance policies
• A bank account in her name alone
• No named beneficiaries
• No instructions about who should inherit what

 

Emily was her mom’s power of attorney while she was alive—but that authority ended the moment her mother passed. Now she’s standing in the role of next-of-kin, trying to unwind her mother’s affairs.

 

1. Why the POA No Longer Works After Death

 

A power of attorney is a lifetime document. It helps manage someone’s affairs while they are alive.

 

But once the person passes:

 

❌ The POA ends

❌ The agent (Emily) no longer has legal authority

❌ Banks and insurance companies cannot honor it

 

This is why insurance companies will issue checks to the estate, not the former POA.

 

2. Why Payments Are Made Out to “The Estate of…”

 

If a deceased person has no living beneficiary and no trust, the law treats their assets as belonging to their estate.

 

That includes:

 

• Insurance claim payments
• Refunds or reimbursements
• Last paychecks
• Bank accounts and investments
• Personal property

 

Since Sandra had no trust and no will, and no beneficiaries listed, the estate becomes the default legal “bucket” that holds everything until the court appoints someone to manage it.

 

3. When You Must Go to Probate

 

Probate is the court-supervised process of:

 

• Identifying assets
• Paying debts
• Distributing what’s left

 

You typically must go to probate when:

 

1. There is no trust,
2. There is no will, and
3. There are sole-owned accounts with more than a small statutory limit (varies by state).

 

In most states, if the bank account is over ~$30,000 (amount varies), a full probate is required. Even below that, families may need a simplified process.

 

In Emily’s situation, probate is mandatory because:

 

• The account was in her mother’s name only
• There was no beneficiary
• No one is legally authorized to access it

 

Only the court can appoint a Personal Representative (Executor)—typically the surviving child—to handle everything.

 

4. What Emily Must Do First: Petition for Probate

 

Emily’s first step is:

 

File a petition in probate court to be appointed as the Personal Representative.

 

Once appointed, she receives Letters of Administration—the legal authority needed to:

 

• Collect estate assets
• Deposit checks written to the estate
• Manage insurance claim proceeds
• Pay funeral costs and outstanding bills
• Close accounts
• Distribute the estate to the rightful heirs

 

Until she has those court documents, the estate is legally frozen.

 

5. How the Estate Is Distributed Without a Will

 

When there is no will, the state’s intestacy laws determine who receives what.

 

For a single parent with one adult child, the distribution is straightforward:

 

➡️ 100% goes to the child.

 

But even though this seems simple, the process still requires probate because there is no valid estate plan naming the daughter as the inheritor.

 

6. What About Insurance Policies?

 

This part surprises many families:

 

Even when a power of attorney has expired, the child may still be able to file a claim on behalf of the estate.

 

However:

 

• The check is issued to the estate
• It must be deposited in an estate bank account
• Only the court-appointed representative can open that account

 

This again circles back to probate.

 

7. Preventing This Entire Situation: A Living Trust

 

This painful and time-consuming process could have been avoided if:

 

• The bank account was in a revocable living trust
• Beneficiaries were properly listed
• A simple pour-over will existed
• A successor trustee was named

 

With a living trust:

 

• No court
• No delays
• No public filings
• The child could immediately control all accounts
• Distribution is private and streamlined

 

A trust is not just for the wealthy—it is for anyone who wants to spare their kids from probate chaos.

 

8. Key Lessons for Families

 

If you are an adult child:

 

Encourage your parents to check their beneficiaries, create a living trust, and keep a current estate plan.

 

If you just lost a parent:

 

You must go through the steps legally:

 

1. Petition for probate
2. Become the Personal Representative
3. Open the estate bank account
4. Collect estate assets
5. Pay expenses
6. Distribute what remains

 

If you are a parent:

 

Ask yourself: Would I want my children to go through probate, or would I prefer to make it simple for them?

 

Final Thought: You Don’t Have to Navigate This Alone

 

Losing a parent is hard enough. Navigating probate, insurance claims, and bank accounts without a trust can feel overwhelming.

 

Our team at BarthCalderon, LLP has guided thousands of families through these exact situations—and helped many others avoid the probate process entirely.