Thanks for your question and good morning.Here you may want to return the check to the insurance company with a letter and copy of the tenancy by the entirety deed and the death certificate and ask them to make the check payable to you as the survivor and the two lienholders.
Assuming that you are now the sole property owner by virtue of being the survivor here the insurance company should recognize that and make the check payable to you as the legal owner of the property.This is the best way to avoid having to file for probate
Since the real property passed to you here at his death and this was replacement funds you can legally argue that it is your funds here after the liens are paid off.I cover letter with copy of the deed and death certificate should resolve this and allow the insurance company to reissue the check to you in your name.
This would be the simplest way to try and resolve the issue of how to deposit the funds and avoid any probate.Again based on what you present this is worth trying in order to resolve it and avoid probate in this situation.
Make sure you send the letter certified or overnight mail so that you know if gets there and you have proof of service to the insurance company.
Something like this as a form..
Whatever Insurance CompanyXXXXX
Re:My claim and check dated ...in the amount..
I am enclosing the above referenced check. I am asking that you reissue this check in my name and the lienholders.I am the surviving owner of the property as tenant by the entirety.I am enclosing a copy of the deed as well as his death certificate for your records in this matter.Please reissue the check in my name and return it to me so that I can resolve the liens and move forward with my life.Thanks for your assistance in this matter, please let me know if you need anything else.
Feel free to modify this to your specific facts, again it is merely a form for you to make use of.
I appreciate the chance to assist you today.It has been my pleasure to do so.Thanks again.
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