My parents have left me everything in their will, and i am the beneficiary of their life insurance.?

Question

in the event of their death, is it my legal responsability to settle their debt I.E. credit, loan etc. can these company come after me for settlement? can they go after the life insurance left to me? does their debt become my debt? i'd appreciate some help here thanks

Answer 1

Here's an article on it:

http://www.associatedcontent.com/article...

Hope it helps a bit!

Answer 2

You are not responsible for their debt.  Unless you cosigned a loan or something the debt died with them.  Sometimes the creditors will pester family members just seeing if someone will send them money, but you can just tell them to leave you alone.  

You will receive a check directly from the life insurance company if you are listed as the beneficiary on the policy.  You will need to contact the company and file a death claim.  

The rest of the assets in their estate will stand for their debt.  Anything left after all of their debts and bills are paid will be paid out according to their will.

Answer 3

Hi,

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Answer 4

It will be the responsibility of the estate's executor to settle debts.  The estate is responsible for their debts, not you personally.

Life insurance payouts are made directly to the named beneficiary.  They are separate from the estate and do not go through probate (unless the estate is the named beneficiary).

Answer 5

OK, first of all, debt is NOT inheritable.

So, you'd get paid the life insurance, and flat out, that's YOURS.

BUT.   You can't "get" anything in the will, until their estate is settled.  What that means is,  all their stuff has to be sold, and their debts paid off.  Once all their debts are paid off, IF there is anything left over, THEN you get it.  

So, debts are paid out of the estate, before the estate is distributed to the heirs.  Life insurance, if it's paid directly to you, is yours.  If the life insurance pays the estate, it also, has to pay off debts, before the heirs can get any remaining.

Answer 6

Tell the person who does your personal taxes how much the estate is worth (do not include the life insurance) to make sure estate taxes do not have to be paid.