We just learned of two small life insurance polices my husband's mother was beneficiary on. These are both less than $1000 each. So total comes to about $1,950. The policy owner died in 1977 and the beneficiary (my mother in law) passed in 1997 apparently never knowing of the policies. Her husband pre deceased her and home was put into a trust and the will named executrix as my husbands sister. All probate has been closed. My husbands sister doesn't want to bother with claiming the proceeds so my husband is submitting the form to the state.
1st question, is it worth it? Meaning, is there a threshold where nothing more needs to be done through the court or does the probate need to be reopened and will there be fees associated?
2nd Question, we are planning to split whatever proceeds 3 ways (based on her remaining children as heirs) - do we report on our taxes and then just write them each a check or does the state write three checks?
Thanks in advance for your help.