She died with no assets and $10,000 in debt.
2007-02-13 06:05:09 · 11 answers · asked by jackyc 1 in Business & Finance ➔ Insurance
You will only pay her debt if you are in a joint account with her. Other than that, generally no.
2007-02-13 07:46:59 · answer #1 · answered by Anonymous · 5⤊ 1⤋
Her estate owes her creditors, not necessarily you directly. Since life insurance payments don't go through the estate, you got this money without having to pay creditors first. It will be different for her assets; any assets that are in the estate will have to go towards paying debts first, and what is left will go to inheritors.
If creditors are pursuing you regarding your mom's debts, I would contact a lawyer and determine your liability if any.
2007-02-13 06:30:35 · answer #2 · answered by MoniqueLise 3 · 1⤊ 0⤋
Assuming you are the beneficiary, absolutely not. Death benefits bypass probate and are not part of the deceased's estate. Creditors have no claim to them.
Note: It's apparent that Sad Soul doesn't understand the purpose or function of cash value. That's okay; neither do most people, or many insurance agents for that matter. But that doesn't excuse irresponsible comments that can dissuade others from making a choice that is in most people's best interest. Almost everyone needs some level of permanent coverage.
2007-02-14 00:39:31 · answer #3 · answered by Rob D 5 · 1⤊ 1⤋
Legally, you are not obligated for her debts, and you should not express to them any willingness to settle it. The creditor can claim against the estate; but, practically speaking, most creditors will not spend the time and money to pursue such a small amount against an estate that is non-existent; and, even if they do, there is no way they can collect from you or damage your credit rating from it. From your question, it does not appear that there is any estate from which they may collect.
I you are the named beneficiary of the life insurance, then the life insurance IS NOT PART OF HER ESTATE. It would be considered part of the estate if the beneficiary designation said, "Estate," but not if it names you or any other individual.
If you are the named beneficiary of her insurance, then they CANNOT collect it from you even if they do claim against the estate. Insurance is not attachable, nor is is discoverable in probate.
Don't volunteer to pay it, and most especially DO NOT PAY ANY OF IT OR YOU MAY WIND UP PAYING FOR ALL OF IT.
VFAH, 30+ years of estate planning
2007-02-13 06:32:18 · answer #4 · answered by View from a horse 3 · 1⤊ 1⤋
What type of debts? some companies have a life insurance coverage built in with the account
2007-02-13 06:12:34 · answer #5 · answered by l_romanmd 1 · 0⤊ 0⤋
No, if you are the beneficiary, the money is yours. Only if the estate is the beneficiary can the creditor have it. They cannot collect the debt from you.
2007-02-13 10:49:58 · answer #6 · answered by Askala Maryam 2 · 1⤊ 0⤋
Depends on "how" you received it. If it was paid to you as beneficiary, then you have no obligation to pay her debts. If it was paid to her estate, and you're POA or executor, then yes, you need to pay off all her debts before any can go to her heirs.
2007-02-13 07:25:38 · answer #7 · answered by Anonymous 7 · 1⤊ 1⤋
the money is yours,it isnt in her estate,if it was the creditors would get it
you arent responsible for your moms debts
2007-02-13 06:27:54 · answer #8 · answered by swenjj 4 · 1⤊ 0⤋
you donnot responsible her debts. If insurance paid to you it is yours. creditor cannot get it from you.
2007-02-15 06:40:53 · answer #9 · answered by tewodros2 2 · 0⤊ 0⤋
Life insurance with cash value don't pay out cash value when you die! They say its a good way to build savings! How is that so if you lose it all and it doesn't go to anyone when you die? People say you can borrow it. Why do I want to borrow my own money that I paid for? Cash value = scams!
2007-02-13 08:38:03 · answer #10 · answered by Anonymous · 1⤊ 3⤋