by gnjthelaws2000 » Tue Nov 02, 2010 03:49 pm
My husbands life insurance policy was written in New York. He passed recently and we live in AZ. HE HAD SEVERAL OUTSTANDING DEBTS. I am not on these accounts and never have been. Can the creditors get the proceeds. I have cashed one check and the other one has not been cashed, nor do I plan on placing them in an account anywhere. Can the creditors get this money.
Posted: Sat Nov 06, 2010 11:32 pm Post Subject:
I am the beneficiary along with several others. There is a will leaving everything to me
Again, life insurance beneficiaries/proceeds and wills generally have little in common. If there were NAMED BENEFICIARIES of the life insurance, the money paid to them is theirs. If any of those persons owe money to someone else, they are not obligated to pay any of the insurance money to those persons. And without a legal judgment, those creditors have no ability to touch the life insurance money.
Claims against the estate of the insured are separate matters. Creditors may have greater standing to pursue their claim in view of a will than the heirs named in that document.
Your ability to buy a home and someone else's ability to put a lien on the property are too dissimilar to discuss in the same post. They have nothing to do with interfering with your receipt of life insurance proceeds if you are a named beneficiary on the group life policy. (But I can say that naming multiple beneficiaries does not happen all that often with group life policies. Married persons usually name their spouses, single persons name one of their parents (usually Mom) or a brother or sister, or sometimes a cousin).
Who's debt with the IRS is being discussed (your own or that of the decedent)??
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