Top Answer
User Avatar
Wiki User
Answered 2006-12-29 23:51:40

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.

User Avatar

Your Answer

Still Have Questions?

Related Questions

What can keep you from being bonded for administrator of an estate?

HAve recent experience in this. A bad credit report will keep the insurance company from bonding you.

Does your dead husband's 500 credit card debt get passed to you if he has no assets but you received life insurance proceeds?

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

If someone dies with 10K in credit card debt and has bank account does the credit card company get the money?

Yes, they are a creditor that can make a claim on your estate.

How does widow respond to creditors calls if not joint on credit card bills?

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.

Are life insurance death benefits part of the estate?

It depends on the policy wording but most do NOT form part of the estate. You will need to ask the insurance company.

Is the Estate Life Insurance Company of America still in business?


What companies will insure a car while it is in an estate?

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.

Can a real estate company pull your credit?

Yes, it can but it has to have your signed consent to do so.

How do you cancel a credit card for someone who died?

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.

If a person has no estate at the time of death who would be responsible for his credit card debt?

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.....

How do you handle life insurance in an estate without a will?

With life insurance, it does not matter if there is or is not a will, because life insurance proceeds are paid directly to the named beneficiary and not to the estate. The named beneficiary obtains a certified death certificate and submits it to the insurance company with the appropriate application form provided by the insurance company. The estate has no rights to the proceeds and would not even be paid to the estate. The only way the estate would be involved is if all named beneficiaries had predeceased the decedent or if the policy names the estate as the beneficiary. In that case, one of the heirs as defined in that state's laws would apply to be the administrator (if there is no will) or executor (if there is a will) and receive the proceeds.

Estate insolvent cannot pay credit card debt affect on heir's credit history or tier score?

It does not. The debt belongs to the deceased. If the estate cannot settle the account, the credit card company is not going to get paid.

Who does a North Carolina real estate company have to cover with workers compensation insurance?

This would depend on the agents relationship with the company. Often times real estate agents are considered subcontractors and as such they would not be covered under workers compensation insurance.

What company offers apartment rental insurance?

A person looking for renter's insurance can usually obtain is from any insurance company that deals with real estate. They can usually be found in any local yellow pages.

Will you have to pay wifes credit card bill after death?

Only if your were a co-applicant. If not, your wife's estate is responsible for paying the debt. If she has no estate, send the credit card company a copy of the death certificate and let them know that there will be no estate set up.

If you take out a loan and then you die who pays for it?

Either insurance or the estate. Some lending institutions provide "credit life insurance" which pays off the loan. If that is not part of the loan, the estate will be required to sell assets to cover the loan.

Where can I find information about landlord insurance?

You can learn about landlord insurance from your local insurance company. Check your local yellow pages for Real Estate Insurance and get quotes for the best deals in your area.

Your sister died and you are trying to collect her insurance benefits her husband was named beneficiary but he died two years ago. what do we do?

Her estate will be the beneficiary of the life insurance. You will have to show the Letter of Authorization from the court to the insurance company. They will issue the check to the estate.

Where can I find a list of free seminars regarding insurance estate planning near Wichita, KS?

In the Equitable Life & Casualty Insurance Company which list list of free seminars regarding insurance estate planning near Wichita, KS

What happens if you are named a benificiary in an insurance policy but the will says different?

The will has no relationship to the insurance policy. The Policy is a contract between the insurance company and the insured and does not become a part of the estate.

What is a probate bond?

What I understand from just googling it is that a probate bond is a means of ensuring that the executor or administrator of an estate will administer the estate properly and not make off with the dead person's money. It ensures this by making the executor or administrator post a bond which I think is like getting insurance. The executor/administrator (let's say "Dude") pays an "insurance premium" to the bond company ("insurance company,"), and if Dude messes up the estate, the bond company will then have to pay whoever was hurt, but can then come after Dude's butt to make him or her reimburse the bond company. Also, I think Dude takes the insurance premium out of the estate itself, so that he/she doesn't have to pay it out of pocket. Lastly, not everyone can be Dude, because a lot of people are rejected for having bad credit. That is to say, the bond company doesn't trust them not to steal stuff from the estate because their credit is so bad, and so won't insure them. This part doesn't make sense to me, because there's a big difference between being poor and being a crook, but hey, I didn't make the rules.

Is PACL India Limited registered with IRDA?

no pacl not registered in irda because pacl is real estate company not insurance company

What do you do with a dead spouses credit card debit?

If the surviving spouse did not sign the credit card agreement then they are not responsible for it. However, the creditors could still come after the deceased spouse's estate (i.e. life insurance) for the balance of credit. You probably want to ask an estate attorney that question.

What happens to a person who dies and now her credit cards are coming in There is no will there is no estate no insurance no savings Do you tell the credit cards that the person is dead?

Yes, you need a death certificate, which you will need to fax/mail into the company. Just tell them the person is dead, and ask for their policy, each company is slightly different but all of them require a death certificate.

What are the estate laws in California concerning credit card debt?

Credit card debts are one of the primary reasons someone should open an estate. The estate has to pay off the debts. If the estate doesn't have the assets to do so, they distribute as best they can. If the court approves the distribution, the debts are ended.

Still have questions?