Disbursement of life insurance

[yankee88]

What is the name of your state? Virginia
Are the benefits of a life insurance policy and a 401K account with a named beneficiary paid directly to the named beneficiary? This is an insolvent estate that doesn't have enough resources to cover outstanding debt

 

[Dandy Don]

The insurance money will be paid directly to the beneficiary, but you will need to ask the company holding the 401K money what their policy is on paying out.

If the 401K account had a named beneficiary, then that money will go directly to the beneficiary as well.