Is life insurance a part of an estate in Colorado?

[wmcot]

What is the name of your state? Colorado

My brother lives in the Denver area and is terminally ill. He has about 1 week left. I am his executor and have power of attorney.

He is divorced from my sister-in-law, but in the divorce agreement, he agreed to give her $175,000 of his $200,000 benefits. The other $25000 is supposed to come to me.

He has not worked for a couple of years and has a fair amount of personal debt which may or may not be covered by his assets. His medical bills (he has VA coverage, but is not in a VA hospital due to lack of room) would be VERY high.

My question is - does the $200,000 insurance policy count as part of his estate or does it go to the beneficiaries?

I am a bit over-whelmed dealing with his pending death and trying to make sure that all those he owes money to are paid fairly. Anyone who can help me would be greatly appreciated.

 

[seniorjudge]

Q: My question is - does the $200,000 insurance policy count as part of his estate or does it go to the beneficiaries?

A: Beneficiaries.

 

[wmcot]

Q: My question is - does the $200,000 insurance policy count as part of his estate or does it go to the beneficiaries?

A: Beneficiaries.

If that's the case, my ex-sister-in-law will be relieved. Personally, I'd rather have my brother than $25,000.

It still seems strange that others can profit by his death while his creditors could possibly go unpaid. I guess that's our legal system at work.

 

[seniorjudge]

If that's the case, my ex-sister-in-law will be relieved. Personally, I'd rather have my brother than $25,000. It still seems strange that others can profit by his death while his creditors could possibly go unpaid. I guess that's our legal system at work.


Your brother wanted her to have the money; he put that in writing.

 

[Dandy Don]

Make sure he has filled out a beneficiary designation form from the insurance company that shows her and you as being partial beneficiaries (with the exact proper percentage listed for each person). If that is not done, she will get the entire $200,000 and you might have difficulty getting her to give it to you.

DANDY DON IN OKLAHOMA ([email protected])

 

[wmcot]

His beneficiary forms appear to be in order and his policy is paid up...fortunately, he is still hanging in there with a small chance of survival (but at least a chance!)

Maybe I won't have to worry about it!