by esochetty » Sun Jun 03, 2012 10:16 pm
In Texas is their a law that if I am behind on Childsupport can they take the life Insurance if I am the beneficary of, also If I live in Virginia is their a tax on Life insurance after you collect the money same question for if I live in Tx is their Tax on Life Ins. after U collect
Sorry their is more than one question
Sorry their is more than one question
Posted: Mon Jun 04, 2012 11:29 pm Post Subject:
Life insurance death benefits are payable ONLY to the designated beneficiary or beneficiaries.
Once you receive the money, however, the story changes. All creditors have the ability to levy bank accounts for charges and monies owed after they have properly obtained a judgment from a court. First the judgment and then the levy. A beneficiary, unless otherwise prohibited by the settlement agreement in the life insurance policy, may also assign the death benefits to be payable to another person.
So, once you actually receive the death benefit $$, you're fair game for your creditors. This also includes the state of Texas for child support payments that are in arrears.
InsTeacher 8)
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