On a life insurance settlement, does the family member get the check or does it get stuck in probate first?
Posted by MarkSep 4
just curious if the person gets the check directly or does it get stuck?
OK, and then the beneficiary (wife) can start paying off the bills? do the credit card companies know about a life insurance settlement?
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It depends on how the policy has been set up. If it has a defined beneficiary then they will receive the money. If it is set up under trust, the trustees will be paid the money. If neither of these apply then the proceeds would be paid to the executors of the estate of the deceased. The funds would then need to be distributed in accordance with any will.
Whoever is named as beneficiary of the policy, gets the check directly. The only time life insurance payments go through probate, are when the ESTATE of the deceased is the beneficiary.
Depends on the circumstances of the policy, death, and the estate.
Almost always the beneficiary gets the payment. Nowadays they are often given an interest bearing checking account with the funds in it and a check book, rather than a check.
Insurance doesn’t go through probate and it’s isn’t attachable by creditors either.