Is Life Insurance Considered An Asset In An Estate?
Is life insurance coverage part of an estate and available to pay a deceased individual’s expenses?
It depends on whether the life insurance coverage policy had a living, designated recipient at the time of the policy owner’s death. We recommend working with a competent Lake Elsinore estate planning attorney such as Wildomar Estate Planning Law.
When Life Insurance Is Part of an Estate
A life insurance policy would have several designated beneficiaries if the decedent finished a recipient classification type for the plan before his death. If a minimum of one of the named beneficiaries endures the decedent, the life insurance coverage proceeds pass straight to the recipient outside of probate.
This is an important distinction since the probate process deals with the decedent’s lenders and pays his financial obligations with available estate funds. When the insurance coverage continues to go straight to a beneficiary, bypassing the estate, the money comes from the recipient. Pals, loved ones, and insurance coverage recipients are not responsible for paying any financial obligations the decedent left behind, so the money is out of the reach of his lenders.
The life insurance coverage profits don’t need to be utilized to pay the decedent’s last bills.
Wildomar Estate Planning Law has been decidedly focused on Estate Planning and the Probate process for decades. Our attorneys believe that no one should be forced to expose their family wealth and misfortunes in the PROBATE courts. Notwithstanding, proper estate planning is the solution. When you need an estate attorney call the professionals at Wildomar Estate Planning Law today. Don’t forget to think about a living trust and our top notch trust administration process to help you when your family is in need.
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The Law Firm of Steven F. Bliss ESQ.
36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
Phone: +1 (951) 459-3330
However, there’s a catch. People often call their estates as beneficiaries of their insurance coverage, potentially meaning that the policy ought to do just that– pay off their last bills. This sends out the cash directly into the state’s coffers. In this case, it can and would be utilized to pay his bills.
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