Legal Question in Wills and Trusts in California

A life insurance policy is a contract that pays a benefit amount directly to the named beneficiaries. The money belongs to the beneficiaries and is not part of your Estate, so it is not something that is used to pay the debts of your Estate.

As long as the beneficiaries of the insurance are you children and their spouses, and not your estate or revocable trust, the money should go directly to them. Unless they are also liable on your debts, they should not have to use the money to pay off the debts.

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