Legal Question in Wills and Trusts in Arizona

Sorting out the exemptions and the debts

I am the PR of my deceased sister's estate. I am also the guardian/conservator of her minor children. The probate estate is worth about $14000 (vehicle = 2000, bank account = 12000). The children will also receive proceeds of a life insurance policy (outside of probate). My sister's debts total about $15,000. Are the probate assets protected by homestead or dependent exemptions, or do I need to pay the debts with these assets? Must the life insurance proceeds be used to pay the debts or will those pass free and clear into the conservatorship?


Asked on 12/27/02, 7:08 pm

1 Answer from Attorneys
Robert Lord Berens, Kozub & Lord PLC

Re: Sorting out the exemptions and the debts

I am not sure about the homestead exemptions, but the insurance proceeds will go to the condervatorship if the child was named as beneficiary. The creditor claims should not be payable out of the insurance proceeds unless the estate was named as the beneficiary.

I hope thats helpful.

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Answered on 12/27/02, 10:51 pm


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