Mother died, had beneficiary as me and my 2 sisters, no will, she owes crediters.?

Question

Does the life insurance go to creditors even though the beneficiarys are myself and my sisters?

Answer 1

No, it shouldn't. Insurance passes outside of your Mom's estate since your Mom specifically listed her kids as the beneficiaries. If she had listed it as her estate, than the creditors would be able to get paid from that.

Don't pay her creditors with your own money from your own account. If you do, they might go after you to pay it all. (That really happens.)

You should see a lawyer to be sure that you and your sisters are protected. Even without a will, your mom's estate may have to be settled. She died intestate (without a will). There are state-specific rules for how her estate should be isettled.

Answer 2

I'm so sorry about your mother...

As long as your mother specifically listed you and your sister as the beneficiaries the creditors cannot touch the policy benefits.  The only way they could would be if your mother left her estate as the beneficiary.  The estate would then have to pay debts before allocating any money to heirs.

So, if the beneficiaries on the policy are specifically listed as you and your sisters then you and your sisters will get the money directly from the insurance company.  

Best of luck as you deal with all of this!

Answer 3

The executor of her estate must pay her debts before distributing any assets. I think this includes the proceeds from her insurance policy, if I understand the law correctly.

This is not something to handle on your own. You want real legal advice, not my educated guesses. A phone call to an attorney is going to be worth whatever he or she charges you.

I'm sorry for your loss, Bill.

Answer 4

Life insurance goes directly to the names beneficiaries.  It does not go to the estate unless there are no named beneficiaries.