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Do beneficiaries of life insurance policies have to repay debts of deceased?

Posted in Life Insurance Questions over 3 years ago, 1 reply

My brother past away last month. His two children (early 20's) are beneficiaries on his life insurance policy. Do they have to use any of the proceeds to pay any of my brother's debts? thank you.
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submitted by Melissa in Branchburg, NJ
No.

They do not have to, but they probably will, IF they are fiscally responsible for his debts.

Life Insurance death benefits pass tax free to beneficiaries, and they are exempt from the claims of creditors.
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submitted by Andrew in Greenwood, IN @ December 01, 2008 - 11:31 AM
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