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If someone dies with 10K in credit card debt and no assets but has life insurance does the credit company get the insurance or does it go to the beneficiary?
Wiki User
∙ 17y ago
Death benefits are generally not subject to attachment for creditor debt. States establish laws concerning property that is exempted from creditor seizure. Without knowing the state of residency it is not possible to be more specific. You can find out what property is exempt under the laws of the state where the person lives by searching "asset exemptions". (Example: Florida asset exemptions). In many states the proceeds of life insurance are not part of the estate because they are proceeds of a contract to pay a third-party beneficiary, which promise of payment vests upon the death of the insured, so the insured (and the estate) do not receive any benefit. Since the estate has no beneficial interest in the proceeds of the insurance, the creditors would have no claim for this money (unless, perhaps, a surviving community property spouse is the beneficiary).
Wiki User
∙ 17y ago
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Does the person who is named Beneficiary on a Life Insurance Policy have to split the money if they are sole beneficiary on the Life Insurance Policy however in the Will states that assets be divided?
If the insured has died the proceeds from the insurance will be paid AS STATED IN THE POLICY. The proceeds of the claim are not part of the assets of the deceased's estate.
When a new will is made does the life insurance company need to be notified?
No. they do not. The distribution you make of your personal assets upon your death is none of the insurance company's business, or concern.However, if you wish to change the beneficiary of your life insurance policy - yes - they MUST be notified of that fact, or the proceeds of your life insurance policy may go to someone whom you do not wish to have them.
Can a person be executor and beneficiary of insurance policy and sole right to the insurance money?
Yes. Insurance proceeds, unless the beneficiary is the estate, are payable directly to the person who is named as the beneficiary beneficiary. As such, the policy proceeds pass "outside" of the estate and do not become a part of it. If the same person who is the named beneficiary of the policy is also the executor of the estate, he/she is required to carry out the directives of the Will. This includes paying legal debts of the deceased, ensuring protection of the value of the assets of the estate, and distributing the assets as directed in the Will.
Who receives the money from life insurance if the beneficiary is deceased the insured or the heirs and there is no contingent beneficiary named?
If there is no living beneficiary when the insured dies then payment of proceeds from a life insurance policy would be paid to the estate of the insured. If the insured had a will then the will provides who receives payment of estate assets. If no will is present then state law will provide how and to whom the assets are paid to. If the estate is very large then estate tax could be due on some of the proceeds of the life insurance policy because they become assets of the estate.
If a person is listed as beneficiary of a life insurance policy does that entitle them to all assets?
No. A life insurance policy is a contract and normally has nothing to do with the estate. If there is not a will, the assets will be distributed according to the laws of intestacy in the state in question.
Does insurance company are insured?
Insurance companies have re-insurers to protect their assets.
What kind of insurance policies are subject to executor's fees?
Insurance policies owned by the decedent that do not name a beneficiary, those made payable to the decedent or to the estate are probate assets and thus subject to the executor's fee.Insurance policies owned by the decedent that do not name a beneficiary, those made payable to the decedent or to the estate are probate assets and thus subject to the executor's fee.Insurance policies owned by the decedent that do not name a beneficiary, those made payable to the decedent or to the estate are probate assets and thus subject to the executor's fee.Insurance policies owned by the decedent that do not name a beneficiary, those made payable to the decedent or to the estate are probate assets and thus subject to the executor's fee.
If a decedent has life insurance are debts paid from the life insurance proceeds?
If there is a named beneficiary the life insurance proceeds bypass probate and the beneficiary will receive the money. If none is named, the proceeds are paid over to the estate. If the proceeds are paid over to the estate the debts of the decedent must be paid before any assets can be distributed to the heirs.
Are mutual fund accounts or life insurance policies with designated beneficiaries considered tangible assets for the purpose of dividing up in a will?
Generally, no. They are disposed of by their beneficiary designations. An exception would be in the designated beneficiary was a decedent's estate, in which case the assets would pass by the terms of the Will. However, they would not be tangible assets (e.g., furniture, cars, silver, jewelry -- things you can touch). They would be intangible assets. Mutual funds generally do not have beneficiary designations. They might, however, be disposed of in a joint tenancy with right of survivorship or payable on death designation.
how to find a good insurance company?
The Philippine Prudential Life Insurance Company is the best insurance company in the Philippines based on their assets, net worth, investment at cost, net income, and paid up capital.
What happens to the assets of a beneficiary's estate with a will?
The question is asked a little awkwardly. Most people intend to ask how the deceased individuals assets are dealt with not the recipients/beneficiaries. However, the assets of a beneficiary's estate should increase since they are receiving assets from a deceased individual. Also, if a beneficiary is deceased their assets, including any inheritance, will pass to their own beneficiaries under the terms of their will.
Does insurance money that has a beneficiary have to be used to pay outstanding credt card balances when you die?
The answer depends on the state of jurisdiction ... in which locale will the decedent's estate be probated? In Ohio, for example (and in most states), courts cannot require that an insurance company make a check payable to anyone but the policy's beneficiary. Since the beneficiary who is not a co-signer of the debt is not responsible for the debt, the creditor will not be able to recover money from insurance proceeds. Keep in mind, however, that any other assets owned by the decedent are available to settle the decedent's just debts, and insurance beneficiaries who also inherit other assets of any value (the gold watch, the baseball card collection) can be forced to liquidate those assets to satisfy the decedent's estate ... and that heir might rather give up some cash received from an insurance policy so he/she can keep dear old dad's gold cuff links.
