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Does life insurance money have to be paid on credit card debt when a person passes away and it has a designated beneficiary?
Wiki User
∙ 11y ago
Yes, the deceased's assets will go towards paying off their debts, before the remainder is distributed to the beneficiaries.
Wiki User
∙ 11y ago
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If a father designates his daughter as beneficiary then marries who gets the fathers retirement and life insurance if he passes away?
The life insurance would be the daughter's. The retirement could be affected by state laws regarding the funds and might be able to be designated to a spouse. The father should definitely update his paperwork to reflect the new marriage, even if he leaves the daughter as the beneficiary.
What happens if the beneficiary of a life insurance policy is deceased?
Generally, if the beneficiary is deceased, the proceeds go to the contingent beneficiary, or if none, to the estate of the insured. An attorney must be consulted to direct you on how to handle this in your state. It depends on whether the beneficiary predeceased the insured. If the beneficiary died before the insured then the proceeds go the the contingent beneficiary. If there is not a contingent, check the contract, it probably is paid to the Owner of the Estate of the Insured. If the Beneficiary died after the Insured, the proceeds go to the Beneficiary's Estate. It is important to have a contingent beneficiary specified in your life insurance policy. This way, if the beneficiary passes away, the contingent beneficiary will benefit. If there is no contingent beneficiary, and the beneficiary has deceased, the proceeds of the life insurance policy, go to the estate and is distributed according to the Will.
What happens if the beneficiary of a life insurance policy has passed away leaving no will?
My uncle was beneficiary on his mother's policy and has since passed away leaving no named beneficiary, so do the proceeds get distributed pursuant to the will? Yes Otherwise, check the rules for your state on "intestate" sucession. This situation is why it's a good idea to name a secondary beneficiary. If the primary passes away, the next in line gets the payout.
If your husband has your son as a beneficiary on his life insurance policy and won't take the time to get this changed what happens if he passes away?
IT DEPENDS WHO IS ON THE POLICY AT THE TIME OF DEATH. IF HIS SON IS ON THERE THEN HIS SON GETS THE MONEY
When a divorced father passes away and there's only a living will a small life insurance policy for the funeral and Daughter is made power of attorney is she responsible for remaining medical bill?
She is not responsible for the medical bill as long as the didn't sign at the hospital saying she was the responsible party. Was the daughter the beneficiary of the life insurance policy? If the beneficiary of the policy was the estate of the insured then the hospital can file a lien against the estate and life insurance to cover the medical bills. If the beneficiary was a funeral home to pay for a prearranged funeral then the hospital cannot attach the policy proceeds. If the beneficiary was the daughter directly then the hospital cannot claim the life insurance proceeds. However, this leaves the daughter with no obligation to use the entire amount for funeral arrangements.
What happens if a will states that a certain heir is to inherit all life policies but the beneficiary of the life-insurance policy is not the heir listed on the will?
The language of the insurance contract can't be altered by the will. If an insured passes away the benefits will go to the listed beneficiary regardless of what the will states. If there is no listed beneficiary (if they pre-deceased the insured for example) then the benefits would be paid into the deceased's estate and would be paid to whoever is named in the will. Please note that this then makes the otherwise tax free death benefit of the life insurance policy subject to estate taxes and would also be subject to the delay and expense of probate.
What if your mothers will names your brother and you as beneficiaries your brother passes away a month later does this make you sole beneficiary?
yes. that would make u the sole beneficiary.
If there are two beneficiaries and one dies previous to the insured do proceeds go to the surviving beneficiary or half to the dead beneficiary's heirs?
There is no single answer to your question because the facts may be different in different cases. First, the insured should change the beneficiary designation if a named beneficiary dies before the insured's death. That will avoid problems later.A beneficiary designation may include additional instructions when two or more beneficiaries are named. First, the insured can name "contingent" beneficiaries who will take a deceased beneficiaries share- on any life insurance policy. Second, the beneficiaries may be named as beneficiaries "per stirpes" or as "joint with the right of survivorship" where if one dies their share passes to the survivor.You need to check the designations on the particular insurance policy, the policies of the particular insurance company and the laws in your jurisdiction.
If spouse passes away and beneficiary on life insurance is not spouse is spouse still responsible for burial?
The estate is probably responsible unless the will says otherwise. In most cases the person making the arrangement will have to pay for the funeral and ask the estate to reimburse them.
What is the definition of term life insurance?
Life insurance is an insurance service that one can purchase, and will pay out a lump sum of money when the owner of the life insurance passes away. It can also be paid out, or bought out, before the owner passes away.
Do you have to pay taxes on a life insurance pay out?
One of the still remaining, best aspects of Life insurance, (the investment aspect of which has been generally agreed to be poor at best) is that the insurance industry has gotten congress to retain that payouts of life insurance to a beneficiary are NOT TAXABLE. That is also why one should always have their insurance policy payable to a specific beneficiary...it passes very quickly, directly to them, out side of the estate and being outside the estate, is exempt from income estate/inheritance and transfer taxes. (If you make yourself or your estate the beneficiary, you would lose the last advantage,as it would become part of the estate). citations: Amounts received under a “life insurance contract” , that are paid by reason of the insured's death aren't included in the gross income of the recipient (i.e., beneficiary) ( Code Sec. 101(a) ) (unless the policy was transferred for value). The exclusion applies to lump sum payments made at the time of the insured's death, and to amounts paid later to the extent the payment doesn't exceed the amount payable at death. ( Reg § 1.101-1(a)(1)
If someone passes away and they are divorced and the deceased had no will can the credit card companies try to collect from life insurance policies?
This question is not an issue dealing with credit. Rather it needs to be addressed to an attorney familar with inheritance laws and may vary depending on state. Try the message boards at www.prairielaw.com
