name of car/house policies

[curlyq]

Jurisdiction

California

My mom had 2 insurance policies in her name, 1 for our cars and 1 for our house, with the same company. She got a discount for having the 2 policies.

She died in late Feb. The policies were for 1 year, which ends at the beginning of December.

Have those 2 policies been valid since she died? I am listed as a driver of the 4 cars, but I have not found my name listed as a member of the house; maybe people are not listed under homeowners policies.

DO I have to change the policies to my name? I should get a discount for removing my mom as a driver, as she was In her 90s!

THANKS

 

[adjusterjack]

Condolences.

You should have addressed this matter at the time of her death to avoid any issues with claims.

I doubt if you can get the name on the policies changed. You will have to get new policies on the house and the cars for whoever owns them now.

You'll get a refund when you cancel the old policy.

Call the insurance agent or company now or first thing in the AM.

 

[cbg]

The policies are still be valid; But don't make the mistake a co-worker of mine made. Contact the insurance carrier and if you have a mortgage and your mom's name is on it, your mortgage carrier too; get them put into only your name immediately. My co-worker let them roll over without taking her father's name off them for over four years, and it was a real mess when she went to sell the condo and she couldn't get her father's signature authorizing the sale as the co-owner.

Do not wait.

 

[curlyq]

THANK goodness that no claims have arisen in the last 6 months; I hope that none occurs in the next 3 months. The 2 policies may be valid, AS CBG wrote, but the situation might be a sticky one, especially if I am asked why I did not notify the carrier. I do not have a mortgage, which is a big relief.

I was considering getting an estimate for the cars and the house under my name, comparing it to the renewal offers that the company will send me under my mom's name, and then choosing the lower. I can see now THAT this idea might be fraught with problems, although I will be required only to send a check in, not sign the documents.

In theory the estmate for the cars should be lower, as my mom will not be driving. I have heard that the house estimate depends as much on our respective credit ratings as it does our zip code and previous claims, of which we have none. IS that true?

 

[cbg]

While it would have been better if you'd notified them immediately, I think most places will understand that your insurance wasn't the first thing on your minds under the circumstances. But don't waste any more time.

 

[adjusterjack]

I was considering getting an estimate for the cars and the house under my name, comparing it to the renewal offers that the company will send me under my mom's name, and then choosing the lower. I can see now THAT this idea might be fraught with problems, although I will be required only to send a check in, not sign the documents.

Sorry, doesn't work that way.

Right now you are concealing material underwriting facts from the insurance company. The company is entitled to collect the appropriate premium for the risk involved, which is now considerably changed. The policies also require the insureds to notify the company of the changes.

Has the deed to the home and titles to the cars changed to the heirs?

 

[zddoodah]

Have those 2 policies been valid since she died?

Yes. However, you or someone on behalf of her estate should have informed the insurer that she died. Did that happen?

I am listed as a driver of the 4 cars, but I have not found my name listed as a member of the house

Listed where? What does "member of the house" mean.

maybe people are not listed under homeowners policies.

Homeowner's policies do not generally identify everyone who lives in the insured premises.

DO I have to change the policies to my name?

Depends on what's going on with the administration of her estate (and some of the responses you've received are incredibly premature without that information). If she owned a home (especially one that is owned free and clear) and four cars, then her estate likely needs to be probated. Has that process begun? If not, why not? If so, who was appointed by the court to serve as personal representative of the estate? I assume your mother wasn't married at the time of her death. Correct? Did she have a will or trust? If so, what does the will or trust say is to become of the home and cars?

You'll get a refund when you cancel the old policy.

Slight correction. Any refund will be made payable to the policy owner or the policy owner's estate.

 

[adjusterjack]

Slight correction. Any refund will be made payable to the policy owner or the policy owner's estate.

Correct.

 

[curlyq]

YOUR collective answers are food for thought and much appreciated. I inherited the house, which my mom, a single person, owned outright, via a trust and changed the title to my name at the Reg/rec in LA in June. I am the only heir; therefore, I received everything that she owned; thank goodness that she had no debts, although you would be surprised at how many quacks have come out of the woodwork to try to buy the house from me for a song; one crackpot even mailed a check for a price that was far below market value and then had the audacity to call me on the phone 3 days later to see if I had cashed the check and, if not, why not. HE left a voicemail, too, and several texts. HOW he got my # I will never know, but that is neither here nor there. I found his actions to be rather infuriating.

To return to the insurance issue, I never checked the 2 policies, but I figured, albeit incorrectly, that my mom had them in both of our names, as we held everything in joint tenancy, including the cars, bank savings, accounts at DWP, gas comp, phone, and so on. I changed the name on all of those entities, too, by removing hers, sometimes with affidavits and death certificates.

I also incorrectly concluded that, as I was named as driver on the policy for the 4 cars and lived in the house and was to be the owner upon her death, the house and cars would continue to be insured; the policies, to my way of thinking, were for the cars and house, not for a specific person. I was right to an extent--the coverage is still valid--but I should have notified the carrier. MY mom, incidentally, paid the full amount for the car and house policies almost a year ago rather than make monthly payments, so in a way, the policies were out of my sight and out of my mind, although that excuse is not worth much consideration.

I notified the insurance carrier yesterday and the rep was very understanding. HE wrote 2 new policies during our 1 hour phone conversation. One sticking point was that he cannot issue the refund for 25% of the home policy in my name, as zddoodah wrote. WHAT good is a check made out to my late mother? If I had power of atty, I could deposit it at our bank, but obtaining such consent is impossible now. I suggested that he put the money toward the new policy, but he balked at that proposal. Does anyone know of a way for me to get the money for the canceled policy? I would like to have the $300 in my pocket.

THANKS

 

[zddoodah]

So...it looks like this is at least the third thread you've started about the same general subject matter. It's better to keep everything together. I'm not going back to review the prior threads and see if there is relevant information there, but I did notice that there's a bunch of information about the trust, which would have been great to know in this thread. In any event....

I inherited the house, which my mom, a single person, owned outright, via a trust and changed the title to my name at the Reg/rec in LA in June.

So...prior to her death, the house was titled to "Mary Smith, trustee of the Mary Smith Trust"? And following her death, you became the trustee of the trust and, thereafter, transferred title "from John Smith [you], successor trustee of the Mary Smith Trust, to John Smith, an individual." Correct?

To return to the insurance issue, I never checked the 2 policies, but I figured, albeit incorrectly, that my mom had them in both of our names, as we held everything in joint tenancy

This contradicts your prior statement that your mother "owned [the house] . . . via a trust."

Who, in fact, was/is the named insured on the homeowner's policy? Post it exactly as it reads on the policy (using fake names, please).

I also incorrectly concluded that, as I was named as driver on the policy for the 4 cars and lived in the house and was to be the owner upon her death, the house and cars would continue to be insured; the policies, to my way of thinking, were for the cars and house, not for a specific person.

Not sure why you think any of this is incorrect. The underlined is, more or less, correct (although "adjusterjack" and I could both get more nit picky with it).

WHAT good is a check made out to my late mother? . . . Does anyone know of a way for me to get the money for the canceled policy?

You said you have a joint bank account. Deposit it in the joint account. Or deposit it into the trust bank account. Any refund is due to the policy owner or that person's estate. You cannot possibly have properly completed the administration of her trust only seven months after the date of her death (among other things, you'll need to file 2024 income tax returns in 2025), so this shouldn't pose any real problem.

If I had power of atty, I could deposit it at our bank

That's not correct. The authority conferred by a POA dies along with the principal.

 

[curlyq]

zddoodah wrote

looks like this is at least the third thread you've started about the same general subject matter. It's better to keep everything together.

--Yes, new issues that I never dreamt of arise. I am sorry that my approach to obtaining answers has been piecemeal.

I have no idea how to handle the issues, so I seek advice here. I wish that I had known of all the problems that would arise upon my mom's death; I would have asked all of the questions at once. The advice that I have obtained here has helped me to prepare the docs for the reg/rec and assessor and deal with banks regarding joint tenancy, and I am grateful.

zddoodah wrote

prior to her death, the house was titled to "Mary Smith, trustee of the Mary Smith Trust"? And following her death, you became the trustee of the trust and, thereafter, transferred title "from John Smith [you], successor trustee of the Mary Smith Trust, to John Smith, an individual." Correct?

--YES, absolutely. She had it in JT tenancy with me until 3 years ago, then put it in a trust because her friend who was a lawyer told her to do it. THE credit cards were not in jt tenancy either, but I was the authorized user. I learned posthaste after her death that I was not allowed to use them again. THE cars and bank accts were held jointly with me. The house was the only property that was held in the trust.

zddoodah wrote

Who, in fact, was/is the named insured on the homeowner's policy? Post it exactly as it reads on the policy.

--mary smith (My mom) is the name on the homeowners policy. PERIOD. NOT mary smith, Trust. The car policy is the same, namely, MARY smith.


zddoodah wrote

You said you have a joint bank account. Deposit it in the joint account. Or deposit it into the trust bank account.


--WE had a joint checking acct at our local bank down the street from our house. WHEN my mom died, the bank told me to 'close the acct and get 1 in your own name.' THE bank never withheld the money, as I, the jt tenant, had a right to it, but I completed the paperwork that the bank required and removed her name from the acct within 2 months of her demise. THE acct # is the same as always, though.

The bank has known us for 30 years. PERHAPS a teller can let the check go through.

We never had a trust bank acct. I am beginning to wish that we had.

I filed 2023 Fed and State tax returns for my mom, as she died before completing them. I will file 2024 fed and state tax returns for my mom's income from her pension and ss for the first 2 months of the year. I am under the impression, from what I read on the IRS and FTB sites, that I need not file a return for the trust, as it made no money. If I am wrong, please tell me!


zddoodah wrote

The authority conferred by a POA dies along with the principal.

--I believe you, but the INSURANCE agent yesterday repeated 3 times to me that 'all you need is a copy of the POA for us to issue the check in your name.' HIS company is nationwide; I am surprised that his training in that area was not better, as he clearly misinformed me.

THANKS very much.

 

[zddoodah]

Well...maybe it's past that point now, but at least consulting with a local attorney would be a good idea. When my sister died about 15 years ago, I (as successor trustee) retained an attorney to assist with the administration of the trust. I don't think trust administration is a good DIY project (although your mother's trust having only you as beneficiary changes that a bit). Also, after I had completed administration of her trust and had closed the trust bank account, I received a check from an insurer for a premium refund for a few hundred dollars. I believe it ended up going un-negotiated because it wasn't worth the hassle of opening another trust account just to negotiate one small check.