Can the IRS seize life insurance benefits?

You should have your mother leave the insurance to a trust and then you or your family as trustee, then the IRS cannot get to the money since it will not be yours. Additionally you may receive income from the trust. Your family could "spoon feed" you. You should consult an ESTATE PLANNING attorney to see how to set this up. rw

The insurance company cannot be forced to make a check payable to the IRS or any creditor. But if the person who receives the proceeds owes money to someone like the IRS, it won't be long before they will be forking it over. The trust described above can protect the money from creditors until it's paid out, but once the money is doled out, it's fair game for creditors.