If the life insurance policy has a named beneficiary creditors are not entitled to any portion nor is the beneficiary legally obligated to pay any of the deceased's debts. Family members are not responsible for the repayment of the debts of the deceased unless they were a joint account holder. The exception in some cases and relating to specific debts, a surviving spouse may be held accountable for the deceased spouse's debts regardless of how the account was held if the couple resided in a community property state at the time of death. Macky ... I don't mean to keep on stepping on your answers, which are most certainly well informed and wise....this is just to add or perhaps clarify. the questioner should understand that When someone dies, they have an estate. It may not have much, if anything in it, but legally, their final affairs must be resolved and accounted for. There is a probate, essentially the making and resolving of the estate, even if verry small/easy/basic required to do this (in most all States). If there is an insurance policy with a specific beneficiary, it will not become part of the estate. It goes to the beneficiary outside of the probate/estate. If there is no named beneficiary, or the beneficiary is the estate (which is the case in a very large number of insurance policys), the money would go there and would be distributed according to the needs of the estate and the laws of the State. Which would mean the debts of the decedent would have to be paid by it.
HAve recent experience in this. A bad credit report will keep the insurance company from bonding you.
Not if you are smart about it. You do not have to pay his debts through his insurance policy. Inheritance may be another thing. The credit company could put a lien on the estate. The insurance policy is NOT the estate. Y-THINK-Y
Yes, they are a creditor that can make a claim on your estate.
If you believe that you are a beneficiary of someone's life insurance policy, but don't know which insurance company - go to court and request to see the probate file of the deceased's estate. It should be listed there.
Tell the credit card company that the card holder is deceased. They do have some rights in some states to collect the money owed from the deceased's estate. They can sue the "estate" for the money owed. Note: a life insurance policy paid to the widow is NOT his estate.
It depends on the policy wording but most do NOT form part of the estate. You will need to ask the insurance company.
yes
Generally the insurance company who was the company for the deceased will continue to be the insurance company for the estate of the insured as long as the administrator is honest with the agent and lists any and all possible drivers on the policy if they might be driving the vehicle.
Yes, it can but it has to have your signed consent to do so.
Send a letter to the credit card company. Include all the pertinent information about account numbers and addresses. A copy of your letter of authorization from the court should also be included. The credit card company will then file a claim against the estate for any balance owed.
Currently I am dealing with estate issues and credit card debts. I am not a lawyer but after talking to many professionals, it seems to me that if their is no estate and no joint credit card holders then the card company will have to write it off.....
Life insurance is life insurance. Estate taxes is estate taxes. Never the twain shall meet. The survivor receives a check from the insurance company and if he or she is responsible for any estate taxes, it's his or her responsibility. Not the company's. That's why I always recommend my friends to read Norman Dacey's (sp) book How to Avoid Probate II. Lawyers hate this book.