If I am the beneficiary of a friend’s life insurance policy, am I responsible for her outstanding credit card bills?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I am the beneficiary of a friend’s life insurance policy, am I responsible for her outstanding credit card bills?

Asked on October 27, 2015 under Estate Planning, New York

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Beneficiaries are not liable for a deceased's debts. If you were the beneficiary/heir of an estate, the bills of the deceased would be paid out first, then the remaining money (if any) would be distributed according to the terms of the Will or state law.
However, you are the beneficiary of a life insurance policy, accordingly you will recieve the proceeds directly; they do not become part of the estate. Therefore, debt ot no debt, you will be entitled to the full amount of the payout.


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 with SHA-256 Encryption