Where does the Money go??

What is the name of your state? Colorado - My mother recently died intestate. At least there has been no mention of a will by the PR. She had a small life insurance policy which names us 4 kids as the beneficiaries.The balance of the value of her estate is minimal. No Real Property involved. The PR has stated that all proceeds from the policy are to be signed over to her to be used to pay my mothers outstanding bills (credit cards, Phone bill etc) and the administrative costs. Is this legally correct?

The PR has stated that all proceeds from the policy are to be signed over to her to be used to pay my mothers outstanding bills (credit cards, Phone bill etc) and the administrative costs. Is this legally correct?

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No... ....

It didn't sound quite right to me either and your response somewhat confirms my suspicions. Could I trouble you to elaborate just a bit as to why this request by the PR is not correct?

mushroom51 said:

It didn't sound quite right to me either and your response somewhat confirms my suspicions. Could I trouble you to elaborate just a bit as to why this request by the PR is not correct?

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Insurance policies with designated beneficiaries go directly to the beneficiary(s) and are not part of the probate estate. All final bills are to be paid with the probate estate. If there is no money to pay the debts/final bills, the estate is bankrupt and the creditors can bite rocks.

Now, should the funeral home not have been paid and there's no money in the estate to do so, y'all should do the right thing and pay for mom's funeral.

Absolutely - yes - that is what we inteded as far as the burial costs are concerned - but not the other outstanding bills.. I felt in my gut that something was not right. Thank you so much for the information - it is greatly appreciated.