Question
What is the name of your state? North Carolina
If a beneficiary for a life insurance policy is also the administrator for the estate, is the beneficiary/administrator required to pay any debt from the estate with the insurance money?
Answer
Life insurance proceeds go directly to the named beneficiary. They are not part of the estate.
Answer
Thanks for the info. That's what I thought however on of my clients was told by a North Carolina atty. that the beneficiary/administrator would have to take care of the debt for the estate. The atty. said it was a new North Carolina law???????
Answer
Re the ins. proceeds they go to the person named as beneficiary - the proceeds DO NOT have to be used to pay debts.