by 03amie » Wed Jul 27, 2011 10:50 pm
If someone owned policies on their children, when he passes do the policies go into the estate? Can creditors attach the policies in the estate. The agent is telling me that creditors cannot have access to life insurance policies. He is also saying that the insured will become the owners and not the estate.
Posted: Thu Jul 28, 2011 10:04 pm Post Subject:
This is generally correct. If the deceased former owner never made other arrangements, this would most likely be the default action.
Best option is to contact the insurance company to make sure. You'll need the beneficiary on the phone as well.
If the beneficiary is under age, its gets a tad more complicated, but still wouldn't end up in the deceased's estate.
Posted: Fri Jul 29, 2011 03:05 am Post Subject:
If the policy is one of those "Gerber Baby Life" (or similar) life policies, they have a provision that continues the premiums when the owner dies, and the policy automatically becomes the property of the now adult child at age 21 or 25 (depending on whether the state has adopted the UGMA or UTMA law).
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