Are life insurance benefits part of an estate?
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Are life insurance benefits part of an estate?
Man dies leaving life
insurance benefit to
girlfriend. Yet, he has a
mortgage. Girlfriend not on
mortgage. Is she as the life
insurance beneficiary
responsible to pay off
mortgage with life insurance
monies?
Asked on July 13, 2019 under Estate Planning, Maine
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
Life insurance proceeds pass directly to the named beneficiary as listed on the policy. In other words, they are not considered to be an asset of an estate. Accordingly, the person to who the life insurance benefits were left to can do with the money as they see fit. In this case, the beneficiary need not pay off the mortgage.
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
Life insurance proceeds pass directly to the named beneficiary as listed on the policy. In other words, they are not considered to be an asset of an estate. Accordingly, the person to who the life insurance benefits were left to can do with the money as they see fit. In this case, the beneficiary need not pay off the mortgage.
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