Legal Question in Credit and Debt Law in Massachusetts

Re: unpaid medical bills

Generally speaking, the cash value and proceeds of life insurance are exempt ( MGL 175, Section 125.;) as long as the proceeds are not payable to the estate of the decedent.

Re: unpaid medical bills

I am sorry for your loss of your brother.

His creditors can not reach his insurance proceeds as long as the designated beneficiary is someone other than his estate.

You should retain an attorney to file a voluntary administration of his estate which should foeclose his creditors' claims. Good luck!

Re: unpaid medical bills

I am very sorry about the loss of your brother.

Whether creditors can legally pursue a debt and whether they will pursue a debt are often two different matters.

Generally, if the proceeds of your brother's life insurance policy passed to another individual by way of beneficiary designation, then they are not reachable by creditors. If this is the case, then the proceeds are non-probate property and pass outside of his probate estate.

However, if your life insurance proceeds passed somehow to your brother's estate, then creditors would be able to bring a claim against the estate.

Please let me know if you require any further assistance in dealing with your brother's creditors.

: unpaid medical bills

I agree. It depends who is the beneficiary of the proceeds. If there is no money or assets left in your brother's estate, then there is nothing for them to reach.