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Credit debt after a death

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freifallin

Guest
My mother passed away with about $40,000 in credit debt. Her life insurance is worth $60,000. In her will it says that her life insurance was to pay off the debt and the remainder to be split among me my brother and my mother's common law husband whom she lived with the past 4 years. The lawyer said the credit debt should die off. Her common law husband said I should have the piano my mom gave to me in the will appraised in case the creditors come for their money.
Now I am wondering. Is the life insurance part of her estate? And if I get 1/3 and use it on my debts etc. will the creditors come to me for my part of the insurance money to pay her debt since I am next of kin? Is her common law husband considered next of kin--since he listed as her spouse on the death certificate? Thanks
 


ALawyer

Senior Member
Lots of questions -- and the real answer is "it all depends" on the exact facts and circumstances, such as where the money to pay premiums came from, who the beneficiaries are, what the documents say, how vigorous the creditors will be, and your state's laws on probabte and creditor rights and bankruptcy exemptions.

Thus you should see a lawyer in your state for a consultation about a plan of attack.

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This is intended as general information only and NOT LEGAL ADVICE. You are not my client, and I have no obligation of any kind to you. To retain a lawyer, go to http://AttorneyPages.com
 

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