Can I use estate policy to pay burial expenses?

[Veronica1228]

What is the name of your state? Wisconsin

My mother just passed away yesterday. She had been living in a nursing home for the past year and a half and had signed over her home to them in the beginning of this year. She had two small insurance policies that she always told me I was the beneficiary of. She took them out so that I could use them to pay for her funeral. I found out today that I am the beneficiary of one of them for $5,000 and that will just about cover the cost of the funeral home expenses. The other policy is for $3,000, but it looks like her estate is the beneficiary of that one. Since I need that to pay for cemetery expenses I am a little worried that I will not be able to use that one.

I am the executor of her estate and I am wondering what the order of pay out is. She does have some outstanding debts such as hospital bills, nursing home expenses, loans, and property taxes from when she owned the property. The $3,000 is nowhere near enough to pay for any of those things so I'm hoping that we don't have to pay them so I can use the $3,000 to pay for the burial plot and headstone, but I just wanted to get some advice from all of you.

I hope I gave you all the pertinent information, but let me know if you have any questions. Thanks in advance for your help.

 

[Shay-Pari'e]

Sorry to hear about your mom V. Hugs.

 

[tryingtoplease]

No answers here, V, but my heartfelt condolences go out to you! You were an immense source of info & strength for me when I went thru this with my Mom last year and I wish you peace. Hang in there, my prayers are with you for comfort at this time.

B

 

[Veronica1228]

Sorry to hear about your mom V. Hugs.

No answers here, V, but my heartfelt condolences go out to you! You were an immense source of info & strength for me when I went thru this with my Mom last year and I wish you peace. Hang in there, my prayers are with you for comfort at this time.

B

Thanks, you two. I really appreciate your kind words.

 

[Mister Darcy]

What is the name of your state? Wisconsin

My mother just passed away yesterday. She had been living in a nursing home for the past year and a half and had signed over her home to them in the beginning of this year. She had two small insurance policies that she always told me I was the beneficiary of. She took them out so that I could use them to pay for her funeral. I found out today that I am the beneficiary of one of them for $5,000 and that will just about cover the cost of the funeral home expenses. The other policy is for $3,000, but it looks like her estate is the beneficiary of that one. Since I need that to pay for cemetery expenses I am a little worried that I will not be able to use that one.

I am the executor of her estate and I am wondering what the order of pay out is. She does have some outstanding debts such as hospital bills, nursing home expenses, loans, and property taxes from when she owned the property. The $3,000 is nowhere near enough to pay for any of those things so I'm hoping that we don't have to pay them so I can use the $3,000 to pay for the burial plot and headstone, but I just wanted to get some advice from all of you.

I hope I gave you all the pertinent information, but let me know if you have any questions. Thanks in advance for your help.

I believe that you can apply the $3,000 dollars toward burial expenses. According to Wisconsin statute 859.25 (priority of payment of claims and allowances) it goes in this order:

1. Costs and expenses of administration

2. Reasonable funeral and burial expenses

3. Provisions for the family of the decedent under statutes 861.31, 861.33 and 861.35

4. Reasonable and necessary expenses of the last sickness of the decedent

5. All debts, charges or taxes owing to the United States

6. Wages due employees

7. Property assigned to the surviving spouse under statute 861.41

8. All other claims.

 

[Betty]

I tend to agree with Mister Darcy. As executor of the estate, you can use the $3,000 payable to the estate for burial expenses.
I don't know you very well - I just started on this forum this year but I'm sorry for the loss of your Mother.

 

[tryingtoplease]

Just curious. Am I to assume Senor Darcy's advice was correct since BB didn't come along to blast it? Not that I doubt him, just curious as I said.

 

[Betty]

Just curious. Am I to assume Senor Darcy's advice was correct since BB didn't come along to blast it? Not that I doubt him, just curious as I said.

In my humble opinion & understanding (on info I have) - yes, that is correct.