TITLE 33. INSURANCE CHAPTER 25. LIFE INSURANCEO.C.G.A. § 33-25-11 (2007)§ 33-25-11. Cash surrender value and proceeds of life insurance policies and annuity contracts not liable to attachment, garnishment, or legal process in favor of creditors; proceeds payable to insured's estate, executor, administrator, or assign to become part of insured's estate(a) Whenever any person residing in the state shall die leaving insurance on his or her life, such insurance shall inure exclusively to the benefit of the person for whose use and benefit such insurance is designated in the policy, and the proceeds thereof shall be exempt from the claims of creditors of the insured unless the insurance policy or a valid assignment thereof provides otherwise. Whenever the insurance, by designation or otherwise, is payable to the insured or to the insured's estate or to his or her executors, administrators, or assigns, the insurance proceeds shall become a part of the insured's estate for all purposes and shall be administered by the personal representative of the estate of the insured in accordance with the probate laws of the state in like manner as other assets of the insured's estate.(b) Payments as directed in this Code section shall, in every such case, discharge the insurer from any further liability under the policy, and the insurer shall in no event be responsible for, or be required to see to, the application of such payments.(c) The cash surrender values of life insurance policies issued upon the lives of citizens or residents of this state, upon whatever form, shall not in any case be liable to attachment, garnishment, or legal process in favor of any creditor of the person whose life is so insured unless the insurance policy was assigned to or was effected for the benefit of such creditor or unless the purchase, sale, or transfer of the policy is made with the intent to defraud creditors.When it says "or otherwise"...Does this mean me being granted administrator makes my life insurance proceeds now part of the estate?I was a beneficiary and I was recently granted letters of administration. My mom died intestate and proceeds were paid out to beneficiaries. Her estate was not designated as a beneficiary.

OK, generally speaking, life insurance proceeds are payable only to the beneficiary listed on the policy. A life insurance policy proceeds in which a beneficiary is listed bypasses the probate procedure and goes directly to the beneficiary. The only way any life insurance proceeds goes through probate is if the beneficiary is listed as "Estate of (insured's name)."That would not be wise because life insurance proceeds are not taxable unless they pass through the estate.The purpose of this statute is to prevent the deceased's creditors from garnishing or otherwise attaching the proceeds of a life insurance policy.The statute has no relation to any life insurance you may carry on yourself.You should have received a check from the insurance company for the full amount of the insurance proceeds, and the money should not have gone to anyone else unless others were listed as beneficiaries under the policy. The fact that you are the administrator of her estate does not affect the insurance policy because it is a contract between your mother and the insurance company and it was not subject to any probate regulations.** Note: This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. **