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What is status of 401K, IRA, or Life Insurance in regards to creditors of deceased?

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fgs

Member
What is the name of your state? AL
Can creditors of deceased open a probate and get proceeds of deceased's 401K, IRA, or named beneficiary life insurance when there was no probate by surviving spouse and no other substantial assets? 401Ks automatically pass to surviving spouse by federal law at death, but does that mean funds are still available to creditors, likewise with IRA and insurance?? Thanks for any reply.
 


seniorjudge

Senior Member
Q: Can creditors of deceased open a probate and get proceeds of deceased's 401K, IRA, or named beneficiary life insurance when there was no probate by surviving spouse and no other substantial assets?

A: A creditor can open a probate estate but it will affect only the property that would've gone through probate anyway. If there is property that does not go through probate, then that property will not be affected by the probate estate.
 

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