Is Insurance Money Considered Estate Money?

(Viginia)
My mom died, leaving a car, which had $10,000 still owing on it. We have let the loan company know. we are concerned that if we/they can't recover the full amount that is owing that we will be liable to pay the difference. My mom did leave a little insurance money that she wanted to be divided between her daughters, which amounts to less than $2000/ea. Is this money considered part of the estate and are we responsible to use it to pay off creditors like this?

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Cam

Her estate is liable for the deficiency, not the kids. That means if she had any personal property you were to inherit, instead of you its value goes to the loan company.

Depending on the nature of the insurance it probably goes to the beneficiaries. Usually a call from a lawyer solves the problem.

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