beneficary rights

[patty murar]

What is the name of your state (only U.S. law)? Illinois

If I am beneficiary on the life insurance for my brother-in-law and he dies do I have to pay off his mortgage or can I let it go into foreclosure?What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

 

[justalayman]

unless there is some stipulation on the policy that requires the mortgage loan to be paid from the benefits of the policy, you are not obligated to do so with the insurance benefits. It will be your money to do with as you choose.

Policy benefits, unless the estate is the beneficiary, are not affected nor controlled by issues concerning the estate.

 

[Betty]

Agree, life ins. proceeds pass outside the estate & go to the named beneficiary to do with as they wish (unless it is noted in the policy that the beneficiary is to use the proceeds in a certain way - this would be rare though). Of course; if the bene would have been the estate, then that would be a different story.

You don't have to pay any creditors of your brother-in-law with the proceeds.