Legal Question in Credit and Debt Law in Pennsylvania

Life insurance and probate are two different issues. Assuming you are correct that you are the designated beneficiary of the life insurance, then you inherit the money free and clear. Celebrate and use the money any way you see fit

Only in the event that the insurance money is eitrher payable to your brother's estate or if no named beneficiary is named or alive would the money go into a probate estate. In that case, yes, it would become available to creditors and you and other heirs would be indirectly liable in that creditors get paid before heirs get anything.

However, when there are more debts than probate assets, claims are paid in order of priority. Priority claims are attorney fees, probate fees, taxes, funeral expenses, family allowances, medical expenses incurred within 6-12 months of death and commissions to personal representatives (state law varies but these generally are priority expenses). Anything which is not a priority only gets paid if there are assets to pay and the personal representative usually has the power to compromise (settle) any outstanding claims. If there is only $5,000 left after priority payments then creditors might only get 25% or get paid their pro rata share..

Probate is a different matter. If your brother truly had no assets - no money, cars, house and no other probate assets, then there is no need to probate an estate. In such case, send a certified letter to the creditors advising that your brother is deceased (attach death certificate), that your brother maintained an account, that you are not financially liable for your brother's debts, that no estate will be probated as your brother had no probate assets and that the creditor should simply close the account and close the account as the debt is not collectible. You are not liable for your brother's debts assuming that you are not a co-borrower or a co-signer like on a personal loan or car or otherwise agreed in writing to be financially responsible.

If you co-signed or were a co-borrower on anything, then I would have to see what you signed but you would in all likelihood be liable independent of probate. Same for possible medical/nursing home care provided that you agreed to be financially responsible.

If you still are in doubt, then I would contact a probate attorney who practices in the county/state in which your brother lived at the time of his death and allow him to review the life insurance policy and any claims that you know of which make up the $20,000. In the event that somehow a probate estate would need to be opened, the attorney can advise on that. If you needed help dealing with creditors, perhaps the attorney could do that as well.