Do credit card companies go after life insurance if no other assets?
July 17, 2010 - 6:03 am
If so, do they take all without burial money?
They can’t. But they’re pretty slimey, and will try to convince you otherwise.
The life insurance policy will pay the beneficiary. The beneficiary has NO obligation to spend the money anywhere, once they get the money, it’s THEIRS.
However, if the ESTATE is the beneficiary, well, no one can inherit anything from the estate, until all the debts of the estate are paid off – and that would include funeral costs, medical costs, mortgage, car loans, and credit cards.
The executor or administrator of the estate gets to pick which bills to pay with any money in the estate. And if it were me, I’d pay off the credit card debt LAST. Debt is NOT inheritable.
July 17th, 2010 at 11:46 am
Life insurance benefits are paid directly and only to the named beneficiary(ies). They cannot be "intercepted" by creditors. Unless the estate itself is the named beneficiary, life insurance benefits are separate from the estate. Creditors can, however, attach bank accounts IF they first get a court judgment.
References :
July 17th, 2010 at 12:24 pm
They can’t. But they’re pretty slimey, and will try to convince you otherwise.
The life insurance policy will pay the beneficiary. The beneficiary has NO obligation to spend the money anywhere, once they get the money, it’s THEIRS.
However, if the ESTATE is the beneficiary, well, no one can inherit anything from the estate, until all the debts of the estate are paid off – and that would include funeral costs, medical costs, mortgage, car loans, and credit cards.
The executor or administrator of the estate gets to pick which bills to pay with any money in the estate. And if it were me, I’d pay off the credit card debt LAST. Debt is NOT inheritable.
References :
July 17th, 2010 at 12:41 pm
In my experience life insurance benefits are creditor protected. so the other answers are correct
References :
July 17th, 2010 at 12:51 pm
nobody can put dibs on life insurance. exception…if the benefits were paid to the estate and the estate has creditors then i dunno…that would be one for the lawyers
References :