Can Texas Inmates Receive A Life Insurance Inheritance

[Etter]

In the state of Texas, can an inmate receive a life insurance inheritance? And, if they can, will they be able to reject it and appoint it to someone of their choice?

 

[PayrollHRGuy]

Yes, they can. But if it is rejected then they are out of the loop as to who receives it. The new recipient(s) would be based on Texas law or the terms of the policy.

For the inmate to direct where the funds go they would have to accept it and then gift it to whom they want to receive it.

 

[Ohiogal]

Yes, they can. But if it is rejected then they are out of the loop as to who receives it. The new recipient(s) would be based on Texas law or the terms of the policy.

For the inmate to direct where the funds go they would have to accept it and then gift it to whom they want to receive it.

Gotta wonder why the inmate is in prison and who the decedant was who left the insurance. Also have to wonder if inmate has been sued civilly.

 

[adjusterjack]

I would also wonder why the inmate couldn't just put it in a bank account until he gets out.

 

[Ohiogal]

I would also wonder why the inmate couldn't just put it in a bank account until he gets out.

He is in for life and owes money judgments or the life insurance is from the victim of his crime and he can't profit from it so...

 

[zddoodah]

In the state of Texas, can an inmate receive a life insurance inheritance?

If, by "life insurance inheritance," you're referring to the payment of the proceeds of a life insurance policy, the answer is generally yes. Of course, if the inmate is incarcerated for killing the insured under the policy, then the answer would probably be no.

And, if they can, will they be able to reject it and appoint it to someone of their choice?

Who are "they"? The inmate (which will be a "he" or a "she") may certainly disclaim payment of the policy proceeds. If "appoint it to someone of [his or her] choice" simply means directing the insurer to pay the proceeds to someone else, then "rejecting" or disclaiming payment would not be very smart, but it's certainly something that could be arranged.

 

[quincy]

Following is a link to the Texas Estates Code, Chapter 201. Of special interest could be 201.058 (already mentioned by Ohiogal and Doodah) and 201.062.

https://statutes.capitol.texas.gov/Docs/ES/htm/ES.201.htm

 

[Taxing Matters]

In the state of Texas, can an inmate receive a life insurance inheritance? And, if they can, will they be able to reject it and appoint it to someone of their choice?

If the inmate was the beneficiary of life insurance issued with respect to the life of a person the inmate murdered its pretty much guaranteed that the insurer would refuse to pay the benefit since that policy would have provisions that deny payment in that circumstance. Even without that provision, most states have laws that prevent the inmate from getting payment from insurance on the life of the person he killed or from the estate of the victim.

Apart from that circumstance, however, an inmate certainly be the beneficiary of a life insurance policy. However, any creditors that the inmate has could make a claim to the proceeds to get paid. Exactly what they'd need to do depends on who the creditor is and what type of debt is involved.

The inmate may also disclaim the benefits he would otherwise get. If he does so, then who gets paid the benefit depends on what the policy. In the absence of an alternative named beneficiary it may well go to the deceased person's estate.

 

[quincy]

Some states will direct a prisoner’s inherited funds to the victim, victim’s family, and/or will seek reimbursement from the prisoner for the costs of incarceration (with varying success). I didn’t check to see if Texas is one of those states, though.

 

[bcr229]

Some states will direct a prisoner’s inherited funds to the victim, victim’s family, and/or will seek reimbursement from the prisoner for the costs of incarceration (with varying success). I didn’t check to see if Texas is one of those states, though.

If it were then a felon couldn't disclaim a life insurance payout or an inheritance if he were a beneficiary, if part of the felon's sentence was to pay restitution to the victim?

 

[quincy]

If it were then a felon couldn't disclaim a life insurance payout or an inheritance if he were a beneficiary, if part of the felon's sentence was to pay restitution to the victim?

I would think that true ... but I really don’t know.

 

[Taxing Matters]

If it were then a felon couldn't disclaim a life insurance payout or an inheritance if he were a beneficiary, if part of the felon's sentence was to pay restitution to the victim?

I don't know about Texas law specifically, but at least in the states I'm familiar with there is no law that requires the felon to accept the insurance payout just so the state can grab it. What the law focuses on is ensuring that the felon can't get it for his benefit while there is restitution to pay.