Deceased Estate Administration: Tips and Guidelines Regarding Insurances

What insurance policies (if any) of the deceased must be kept in effect following his death? 

Auto Insurance

You have to take into consideration maintaining the vehicle's insurance policy if rates are favorable. Most automobile insurance firms will continue covering the car as well as the new legal owner at the same rate under the insurance agreement's permissive use clause. Alternatively, if the vehicle will lay idle during the period of administration, or if it will be sold, you could consider registering the automobile for "planned non-operation" and cancelling the insurance policy. This will help you save espenses for the Estate.

Homeowners and Renters Insurance

You must maintain the homeowners and renters insurance policies, as long as the property remains in the Trust or Estate, to protect the Trust and Estate assets in case of lawsuits or property damage. Cancelling the insurance coverage can actually expose the Trustee or Executor to breach of fiduciary duty or liability, if lawsuits or property damage deplete the assets due to lapsed insurance coverage. The Executor of Will must inform the insurance company regarding the death in writing and request that the Estate be added to the insurance policy as a "named insured" immediately, in order to secure the same rights as the individual who died. 

Health Insurance

If a person who died received employer health insurance, surviving dependents and spouses will be eligible for continued coverage after his death, if they were covered originally. You could contact the employer of the insurance company in order to remove the individual from coverage, while continuing coverage under the existing policy for qualified members of the family.

If you need professional assistance on deceased estate administration, visit the website of Estate Administration Services.