You don't typically think of life insurance benefits as something that could end up tied up in probate after a loved one's passing. After all, life insurance policies have a designated beneficiary that should simply receive the money after the insurance company receives a copy of the death certificate. In order for this to happen the way that it should, the beneficiary must be clearly designated and reachable following the policy holder's death. Here are three scenarios where you might find a loved one's life insurance in probate instead.

If the Beneficiary Dies With Your Loved One

In most situations, people can change the beneficiary on their life insurance if the current one passes away. There are cases, however, particularly in the case of spouses, when the life insurance beneficiary will pass away with the insured. If they were involved in an accident or other incident and passed away together, then it is up to the court to designate a new beneficiary. In most situations, the courts will evaluate the policy holder's will to determine the beneficiary of their estate, or will pass the life insurance to the next of kin.

If the Beneficiary Can't Be Located

When assigning a beneficiary to a life insurance policy, you need to provide contact information for the beneficiary. You should also update that information any time it changes. If your loved one forgets to do that, or the beneficiary cannot be found for any other reason, the life insurance benefits typically become part of your loved one's estate.

That means the life insurance benefits are distributed according to the terms of the will, if there is one. If the will designates someone to inherit the estate, that individual also receives the life insurance payment. In the absence of a legally valid will, though, the payment and the rest of the estate will fall under the regulation of the probate court. You'll need to work with a probate attorney to file a petition for your rights to the funds in that case.

If the Beneficiary Dies Awaiting Payment

This poses a unique situation. In a case where the beneficiary dies while awaiting the processing of a life insurance payment, those funds are legally considered part of the beneficiary's estate. He or she was legally alive and well when the life insurance was settled, which means that the funds legally belong to him or her, and the estate after their death. If the beneficiary has no will in place, that estate and life insurance payment may go to probate for settlement.