Do creditor's have a claim against life insurance proceeds?

[dbworker33]

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

I can't seem to find a definitive answer while researching online.
My mother-in-law passed away without a will. The mortgage on her house is higher than what the house is now worth. The only thing she left when she passed was a life insurance policy that names my wife as the beneficiary.

Does the bank that holds the mortgage (creditor) have a claim against the proceeds that my wife will recieve from the life insurance payment? I know that life insurance is a non-probate asset, so she wouldn't have to go through probate court to receive this payment.

Any advice would be greatly appreciated. Thank you

 

[seniorjudge]

Q: Does the bank that holds the mortgage (creditor) have a claim against the proceeds that my wife will recieve from the life insurance payment?

A: No.

 

[dbworker33]

Thank you for answering so quickly.

Is this answer in the New Jersey Statutes? I looked everywhere. Do you what law # this is?

Thank you in advance for your help

 

[Zigner]

Thank you for answering so quickly.

Is this answer in the New Jersey Statutes? I looked everywhere. Do you what law # this is?

Thank you in advance for your help

The proceeds are not a part of the estate. They belong to the beneficiary.