Legal Question in Insurance Law in Florida

DDR Unpaid Debt

My late fiance left behind a debt in excess of $9,000 owing to the Dept of Revenue relating to a child support modification he was granted in 2003-the State set up small monthly installment payments for him. He died lof cancer in 7/07, leaving no assets whatsoever, just clothes & small personal items which have been distributed to his children. There isa $30,000 life insurance policy currently being disputed by myself and his children. The federal government (he was retired from the VA) says they did not have a beneficiary designation form but there was a completed copy in his files showing me as the beneficiary, so now they are investigating. My question is whether this $9,000 DDR debt has to be paid from the life insurance proceeds by whomever receives the life insurance?


Asked on 10/16/07, 6:10 am

1 Answer from Attorneys
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

Re: DDR Unpaid Debt

If there is no named beneficiary, then the proceeds would go into his estate and his debts would be paid before the estate beneficiaries recover anything. If there is a valid beneficiary on the life insurance, it passes outside of the estate and the debts are not paid from that.

Read more
Answered on 10/16/07, 11:35 am


Related Questions & Answers

More Insurance Law questions and answers in Florida