My sister passed away, can her creditors seize the proceeds from her life insurance?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

My sister passed away, can her creditors seize the proceeds from her life insurance?

Her husband passed away last year and she does not have kids. Our parents are also deceased. All that is left is my brother, my sister and myself. She has all debts, $1,000 in a checking account and she owned two houses, both of which she owes more on them than they are worth. She has a life insurance policy of $140,000 and she did not list any beneficiaries. Will it go through probate and the creditors take the life insurance money?

Asked on March 24, 2015 under Estate Planning, Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I am so sorry for your loss and for the situation.  If there is no named beneficiary on the life insurance then it will be paid to "the Estate of...." and then yes, her creditors could indeed file a claim against those funds.  I would go and speak with an attorney on a consultation basis about the fiduciary negotiating the debts of the estate.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption