Can Creditors Go After A Life Insurance Policy In Missouri? The Deceased Has No Spouse And Lives Alone.?
Posted January 8, 2010 – 4:36 pm in: structured settlements FAQMy father passed away and left me as the beneficiary of the life insurance policy. My father has been divorced for years and lives alone.
Tags: After, Alone., Creditors, Deceased, Insurance, Life, Lives, Missouri, Policy, Spouse
5 Comments
his estate is responsible for the bills not you
Life insurance covers lots of different things. Since I’m from Vermont I’m not familiar with the Missouri regulations, so I recommend you call a local life insurance agent. http://www.usinsuranceadvisor.com/Life-I… They should be able to help you.
Your father’s creditors should be paid by his estate. Life insurance is NOT part of the estate. It belongs to the beneficiary and you can do whatever you want with those funds.
If you are the one handling his estate and there are no assets, send a letter to the creditors with a photocopy of his death certificate (don’t send the expensive certified copies). Tell them that there is not money to pay them.
Most will write off the debt and you’ll hear nothing further. Some credit card companies may try to convince you that you must pay. But that is not true. Don’t talk to them on the phone. Just send another letter with a copy of the death certificate — send it certified, return receipt this time.
They can’t go after the life insurance. If you are the beneficiary of the policy, the money is YOURS. Debt is not inheritable.
So YOUR creditors can go after the money, but not your dad’s.
If the beneficiary was his estate, though, and you inherited through a will, then all his debts must be paid off, before you can inherit ANYTHING.
No. If you are the named beneficiary, the insurance company will pay the benefit directly to you. It does not become part of your father’s estate.