Legal Question in Wills and Trusts in New York

Re: proceeds of life insurance

Once the proceeds of the life insurance policy become yours, those proceeds are available for payment of the mortgage debt. Within the time limitations provided, and before you receive the proceeds of the policy, you have the right to renounce and then the proceeds would be paid to the recipient who would be entitled to them if you had predeceased your husband. This may or may not be beneficial to you.

Re: proceeds of life insurance

Q. If the house goes into foreclosure,(we are both listed on the mortgage), can the bank take the proceeds from my husbands life insurance to which I am the beneficiary?

A. Ultimately, yes since you are both listed on the mortgage.

Mike.