Before proceeding, please review the  legal disclaimer.

Does Life Insurance Go Through Probate in Texas? What Beneficiaries Need to Know

After losing a loved one, you may be wondering what happens to their life insurance policy—and more specifically, does life insurance go through probate?

The short answer is: Usually no—but sometimes yes. It depends on how the policy was set up and whether a valid beneficiary was named.

At The Lange Firm, we help Texas families understand which assets go through probate and which can be transferred directly. In this guide, we’ll break down when life insurance is subject to probate, how to avoid common pitfalls, and what to do if you’re the beneficiary of a policy.

What Is Probate?

Probate is the court-supervised process of settling a deceased person’s estate, which includes:

• Validating a will (if there is one)
  
  
• Appointing an executor or administrator
  
  
• Paying debts and taxes
  
  
• Distributing remaining assets to heirs
  
  

Many assets must go through probate—such as bank accounts, real estate, or vehicles titled solely in the decedent’s name. However, some assets can bypass probate entirely if properly designated.

Does Life Insurance Go Through Probate?

✅ No, Not If a Valid Beneficiary Is Named

If the life insurance policy has a living, named beneficiary, the death benefit is paid directly to that person—outside of the probate process.

This means:

• No court approval is required
  
  
• Funds are typically paid within a few weeks
  
  
• The policy proceeds are not subject to creditor claims (in most cases)
  
  
• Beneficiaries avoid delays and legal fees
  
  

✅ Example: If your mother named you as the sole beneficiary of her life insurance policy, the insurance company will send the funds directly to you once you file a claim and submit a death certificate.

❌ Yes, If No Beneficiary Is Named or the Beneficiary Is Deceased

Life insurance does go through probate when:

• No beneficiary is listed
  
  
• The beneficiary died before the policyholder and no backup was named
  
  
• The policy lists “estate” as the beneficiary
  
  
• The beneficiary is a minor and no trust or guardian is in place
  
  
• There is a dispute over the rightful beneficiary
  
  

In these situations, the proceeds become part of the decedent’s estate and must be distributed through probate—either according to the will or Texas intestate succession laws.

Common Situations Where Probate Applies to Life Insurance

How to Avoid Life Insurance Going Through Probate

To keep life insurance out of probate:

✅ 1. Always Name a Primary and Contingent Beneficiary

Make sure you name at least one backup in case the primary beneficiary passes away before the insured.

✅ 2. Keep Beneficiary Designations Up to Date

Review your policy regularly—especially after marriage, divorce, births, or deaths.

✅ 3. Use Trusts or Legal Guardians for Minor Beneficiaries

Insurance companies won’t pay directly to a minor. Consider naming a trust or appointing a guardian.

✅ 4. Avoid Naming “My Estate” as the Beneficiary

This sends the funds directly into probate, defeating the speed and privacy of life insurance.

Are Life Insurance Proceeds Taxed or Subject to Creditors?

• Life insurance is not taxable income for the beneficiary in most cases.
  
  
• If the estate is named as the beneficiary, the proceeds may be subject to estate taxes if the estate is large (federal threshold in 2024 is $13.61 million).
  
  
• In Texas, if the proceeds go through probate, creditors may have access to them—especially for unpaid debts.
  
  

📌 Proper beneficiary planning ensures your loved ones receive the full value of the policy, without unnecessary interference.

What If You’re a Beneficiary and the Insurance Company Won’t Pay?

If you’re facing:

• Delays in payout
  
  
• Disputes with other potential heirs
  
  
• A denied claim
  
  
• Problems locating the policy or insurer
  
  

…you have rights. The Lange Firm helps beneficiaries assert their legal claims and resolve disputes over life insurance.

How The Lange Firm Helps With Life Insurance and Probate

At The Lange Firm, we assist clients by:

• Determining whether life insurance must go through probate
  
  
• Filing death claims and gathering required documents
  
  
• Representing beneficiaries in legal disputes
  
  
• Ensuring minors or special needs beneficiaries are properly protected
  
  
• Helping executors distribute life insurance proceeds correctly
  
  
• Drafting wills and trusts that integrate with life insurance planning
  
  

📞 Contact us today if you need help accessing life insurance or navigating probate after a loved one’s passing.

Final Thoughts

So, does life insurance go through probate in Texas?
✅ No—unless there’s no valid beneficiary. Naming and updating your beneficiaries is the easiest way to keep life insurance outside of the court system.

At The Lange Firm, we help Texas families protect their financial futures through smart estate planning and probate guidance.

📞 Ready to avoid probate headaches and secure your legacy? Contact The Lange Firm for a consultation today.