When a loved one passes away, dealing with their financial affairs can often feel overwhelming. As part of the estate administration process, families may encounter different types of financial accounts and policies. One account that frequently comes up is the MetLife Total Control Account (TCA). Understanding what this account is, how it works, and how it affects the probate process can help ensure you handle these assets properly during estate settlement.
What Is a MetLife Total Control Account?
A MetLife Total Control Account is a unique way that MetLife pays out life insurance death benefits. Instead of issuing a lump-sum payment by check, MetLife creates a temporary account in the beneficiary’s name and deposits the full death benefit into that account. The beneficiary can withdraw funds as needed by writing checks against the account balance.
These accounts are designed to give beneficiaries flexibility and time to decide what to do with the insurance proceeds, rather than requiring them to make immediate financial decisions during an emotionally difficult time.
Key Features of a MetLife TCA
Ease of Access: Beneficiaries receive a checkbook and can write checks to access the funds at their convenience.
Interest-Bearing: The balance in the Total Control Account earns interest, which is typically comparable to a money market account.
FDIC Protection: Funds in the account are generally protected up to the limits set by the FDIC, offering a level of security.
No Immediate Lump-Sum Decision: Beneficiaries have time to decide how to use or invest the funds without pressure.
MetLife TCA and Estate Administration
When a beneficiary is named on a MetLife Total Control Account, the funds generally bypass probate and go directly to the beneficiary. This can simplify the estate administration process, as the death benefit doesn’t need to be processed through the probate court.
However, complications may arise in the following situations:
No Named Beneficiary: If no beneficiary is listed or if the named beneficiary predeceased the policyholder, the MetLife TCA becomes part of the decedent's estate. In this case, the funds must go through probate and will be distributed according to the terms of the will or state intestacy laws.
Estate Named as Beneficiary: If the decedent named their estate as the beneficiary, the TCA proceeds will also go through probate, potentially delaying distribution and increasing costs.
Incapacitated or Minor Beneficiaries: If the beneficiary is a minor or someone incapacitated, additional legal steps, such as setting up a trust or guardianship, may be necessary to access and manage the funds.
Steps to Take in Estate Administration
If you are administering an estate where a MetLife Total Control Account is involved, consider the following steps:
Locate the Policy and Verify Beneficiaries: Review the life insurance policy to confirm the named beneficiaries.
Contact MetLife: Notify MetLife of the policyholder's passing to begin the claims process.
Determine Probate Status: If the estate is the beneficiary or if no beneficiary is named, include the account in the probate inventory.
Coordinate with an Attorney: An estate administration attorney can help navigate the process, especially if probate is required or if complex situations arise.
Why Proper Planning Matters
Naming beneficiaries on life insurance policies, including MetLife Total Control Accounts, can streamline the distribution process and avoid probate. Regularly reviewing and updating these designations can ensure your wishes are followed and ease the burden on your loved ones.
At Crane Law, PC, we guide families through the complexities of estate administration, ensuring that every asset — including MetLife TCAs — is properly managed. If you have questions about life insurance proceeds, probate, or estate planning, tell us your story, and we’ll help you chart a clear path forward.