Sydney, Mar 14: Matilda, Heath Ledger''s three-year-old daughter, has been officially named the sole beneficiary of his life insurance policy.

Following a Los Angeles court hearing, her custodian John Laviolette and lawyer William Shernoff emerged from Superior Court Judge Luis Lavin''s chambers wearing smiles.

"It is finalised and everybody is mutually happy," The Sydney Morning Herald quoted Laviolette, as saying.

When asked if the money would go to Matilda, Shernoff said: "Yes. Everyone is happy".

The Dark Knight star took out the life insurance policy seven months before his naked body was found on January 22, 2008, in a Manhattan loft apartment he was renting.

He named Matilda as the benefactor.

An autopsy by the New York Medical Examiner''s Office found the Perth-born 28-year-old Oscar winner died from an accidental overdose of prescription drugs, including painkillers and sleeping pills.

Matilda lives in Brooklyn, New York, with her mother and Ledger''s former fiancee, actress Michelle Williams. (ANI)