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Life insurance and estates

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Junior Member
What is the name of your state (only U.S. law)? Ohio
I am the only named beneficiary on a friend's life insurance policy. I am also the executor of her "estate" and the only person named in her will to get all of her personal property. She has no real estate, savings, stocks/bonds, etc. The life insurance is only $15,000. My friend has several credit cards with unpaid balances, probably adding up to about $15,000. Is the payout from the life insurance part of the estate? I am paying for her funeral, obit, death certificates, etc out of my pocket in hopes that I will get it back if/when the life insurance pays off. If the life insurance is part of the estate, where in line do I stand to get my money back?


If you are named as the beneficiary of the insurance--it pays directly to you & has nothing to do with probate. Her debtors have no claim on it. As executor, you would use any other proceeds from her estate if there are any, to pay her debts. The funeral expenses become one of the debts that the estate should pay.So if there are any other assets, you should not consider the insurance money as your payback for the expenses you incurred.

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