You have a named beneficiary or beneficiaries for your Profit Sharing Plan and life insurance. The money from the Profit Sharing Plan and life insurance policy will belong to the beneficiaries your named which they will use as they please since it will be their money. If you want that money to be used to pay your mortgages then you have to create a trust to receive the money from the Profit Sharing Plan and insurance upon your death and instruct the trustee to use the money as you wish. This is not a bankruptcy question but rather an estate planning question. You might want to prepare a revocable living trust and have the trust become the beneficiary of your Profit Sharing Plan and insurance and instruct the trustee how the funds are to be used and who will get your property. You can also provide in the trust for administration of your property in case of serious disability.
Answered on Jan 14th, 2011 at 6:58 PM