Life Insurance beneficiary is ex-wife

[beeorlando]

What is the name of your state? Florida
My mom told me that my father's $30,000 life insurance beneficiary is his ex-wife. My father is not in good health and has over $30,000 in credit card debt and owns a townhouse with little equity. My question is, can a life insurance policy be used to pay debts regardless of the beneficiary? I'm not interested in my father's money but I do want to protect my brother and I from inheriting debt and having no resources to pay it off.

 

[ALawyer]

You do not inherit debt -- if he had assets the amount of debt would have to be repaid from those assets before anyone would inherit from his estate.
I am not familiar with your state's laws on what happems with the proceeds if there is debt.

 

[BelizeBreeze]

ALawyer is correct (as if he needes me to tell him that ) because insurance passes outside of probate. As for debt, the estate will be responsible for the debt. Therefore, if there is not enough in the estate at the time of his passing, to pay the debt, it goes away.

Stop worrying about it and concentrate on dad.