Legal Question in Wills and Trusts in California
Life Insurance/Credit Card debts
My mother recently passed. To our surprise she actually had life insurance. There are 5 siblings and each has a 20 % share. She has no other assets. What happens to her credit card debts and can the credit card companies come after us to pay them?
3 Answers from Attorneys
Re: Life Insurance/Credit Card debts
The proceeds are paid to you. The creditors of your mother will have to write off any amounts in excess of her assets. The insurance proceeds are not her assets. You and your sibs are the third party beneficiaries of the policies.
Re: Life Insurance/Credit Card debts
no
Re: Life Insurance/Credit Card debts
I just want to clarify what Mr. Roth stated. He is correct if you and your siblings are named beneficiaries on the life insurance, and there are not extraodinary circumstances (such as your mother defrauding the credit card companies). If your Mother named herself or her estate as the beneficiary, then the proceeds are part of her estate. To answer this question fully, someone would need to see a copy of the policy and get a little background. But most likely what Mr. Roth said was correct.
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