If I have unsecured debt when I die will my beneficiary be responsible from my policy benefits?
Total Comments: 3
Posted: Sun Apr 20, 2008 06:47 pm Post Subject: debt
Sometimes, even with Credit Cards, you can sign up for a 'cluse' stating that you debt is atomatically paid, upon your death. However, I think the payments need to be 'up to date' (I'm not sure about this, so, hopefully someone else, from the forum, can help with this.) But,...whatever unsecured debts, you DO have, why don't you check and see if they have a 'clause' like that. Some debts DO have something like that and people don't realize it. Hope this helps.
Posted: Thu Apr 24, 2008 09:47 am Post Subject:
If I have unsecured debt when I die will my beneficiary be responsible from my policy benefits?
No.
Most all states EXEMPT creditor claims against life insurance policy death benefits IF the beneficiary is a "natural" person.
222.13 Life insurance policies; disposition of proceeds.--
(1) Whenever any person residing in the state shall die leaving insurance on his or her life, the said insurance shall inure exclusively to the benefit of the person for whose use and benefit such insurance is designated in the policy, and the proceeds thereof shall be exempt from the claims of creditors of the insured unless the insurance policy or a valid assignment thereof provides otherwise. Notwithstanding the foregoing, whenever the insurance, by designation or otherwise, is payable to the insured or to the insured's estate or to his or her executors, administrators, or assigns, the insurance proceeds shall become a part of the insured's estate for all purposes and shall be administered by the personal representative of the estate of the insured in accordance with the probate laws of the state in like manner as other assets of the insured's estate.
Your question is a very good one and the point can't be stressed enough that the primary beneficiary and the contingent beneficiary should ALWAYS be natural persons.
NEVER should "The Estate" be listed as beneficiary.
ALWAYS a natural person and the contingent beneficiary should NEVER be left blank. That would cause the proceeds to enter Probate Court if the primary beneficiary died before the Insured if the policy was never updated with a current beneficiary designation.
My 43 cents worth!
Posted: Tue Apr 29, 2008 12:44 am Post Subject: insurance
Good explaination! And pretty 'clear' too!! Makes sense. Why would people want to make an ESTATE beneficiary?? That's kinda weird, isn't it?
Posted: Sun Apr 20, 2008 06:47 pm Post Subject: debt
Sometimes, even with Credit Cards, you can sign up for a 'cluse' stating that you debt is atomatically paid, upon your death. However, I think the payments need to be 'up to date' (I'm not sure about this, so, hopefully someone else, from the forum, can help with this.) But,...whatever unsecured debts, you DO have, why don't you check and see if they have a 'clause' like that. Some debts DO have something like that and people don't realize it. Hope this helps.
Posted: Thu Apr 24, 2008 09:47 am Post Subject:
If I have unsecured debt when I die will my beneficiary be responsible from my policy benefits?
No.
Most all states EXEMPT creditor claims against life insurance policy death benefits IF the beneficiary is a "natural" person.
Florida Statute 222.13
222.13 Life insurance policies; disposition of proceeds.--
(1) Whenever any person residing in the state shall die leaving insurance on his or her life, the said insurance shall inure exclusively to the benefit of the person for whose use and benefit such insurance is designated in the policy, and the proceeds thereof shall be exempt from the claims of creditors of the insured unless the insurance policy or a valid assignment thereof provides otherwise. Notwithstanding the foregoing, whenever the insurance, by designation or otherwise, is payable to the insured or to the insured's estate or to his or her executors, administrators, or assigns, the insurance proceeds shall become a part of the insured's estate for all purposes and shall be administered by the personal representative of the estate of the insured in accordance with the probate laws of the state in like manner as other assets of the insured's estate.
Your question is a very good one and the point can't be stressed enough that the primary beneficiary and the contingent beneficiary should ALWAYS be natural persons.
NEVER should "The Estate" be listed as beneficiary.
ALWAYS a natural person and the contingent beneficiary should NEVER be left blank. That would cause the proceeds to enter Probate Court if the primary beneficiary died before the Insured if the policy was never updated with a current beneficiary designation.
My 43 cents worth!
Posted: Tue Apr 29, 2008 12:44 am Post Subject: insurance
Good explaination! And pretty 'clear' too!! Makes sense. Why would people want to make an ESTATE beneficiary?? That's kinda weird, isn't it?
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