Letters testamentary are official court documents issued to the executor named in a will, authorizing them to act on behalf of the deceased person's estate. These documents confirm the executor's legal authority to collect assets, pay debts and taxes, and distribute property according to the will's terms. In the context of life insurance, insurers may request letters testamentary when death benefits are payable to the estate or when an executor is handling claims involving complex beneficiary designations, disputed ownership, or integration of policy proceeds into probate proceedings. Letters testamentary help carriers ensure they are dealing with the correct, legally recognized representative of the estate.

In practical estate settlement, advisors see letters testamentary when working with executors who must marshal assets, including life insurance, brokerage accounts, and real estate, after a client's death. The executor presents letters testamentary to financial institutions and insurers as proof of authority before those entities release funds or provide detailed account information. When a policy lists the estate as beneficiary or when no living beneficiary is named, the executor uses letters testamentary to file the claim and direct proceeds into the estate for distribution. Advisors can support executors by explaining claim procedures, coordinating with attorneys, and helping track how life insurance proceeds fit into the overall estate plan, including tax and liquidity considerations. Understanding letters testamentary enables producers to navigate the intersection of probate, insurance, and beneficiary planning more effectively and to prepare clients for the administrative realities their heirs will face.