QUESTION
Am I responsible for paying these medical bills after he passes and can anybody take the life insurance from me for his bills that are owed?
Asked on Apr 08th, 2013 on Estate Planning - Texas
More details to this question:
My spouse is dying of cancer. He has life insurance but the medical bills are piling up. We don't own anything like a home, car, etc.
13 ANSWERS
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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The life insurance beneficiary is to receive the benefits free from any liens. Don't let anyone tell you otherwise.
Answered on Apr 09th, 2013 at 2:57 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Hello, The life insurance is not subject to creditor claims. The creditors can make claims against the estate, if there is one. It sounds like there will not be one, in your case.
Answered on Apr 09th, 2013 at 2:43 AM
Litigation Attorney serving St. Louis, MO
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Probate Law Center Richard J. Keyes, PC
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If you are the beneficiary of the life insurance, then it does not go through probate and you would not have to use the funds to pay his debts. Please make sure that you did not sign for, or co-sign for, any of his medical treatment.
Answered on Apr 09th, 2013 at 12:15 AM
Generally, the assets of the estate should be used to pay the bills of the estate, including medical bills. But, you need to look at who is the owner of the insurance policy because it might not be your husband.
Answered on Apr 08th, 2013 at 1:32 PM
Business Law Attorney serving Livonia, MI
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Gerald A. Bagazinski
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Make sure you are the beneficiary of the policy and not an estate or trust. In Michigan, the policy proceeds would then pass to you and be exempt from attachment by creditors.
Answered on Apr 08th, 2013 at 1:32 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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If you are the beneficiary, then the life insurance proceeds are yours. As long as you did not guarantee the debt, you should be okay.
Answered on Apr 08th, 2013 at 1:32 PM
Thomas Edward Gates
Your husband's estate owe the bills for the medical treatment. You do not state whether you live in a community property state and, this will make a difference in payment obligation. The insurance policy may need to be used to pay the medical expenses. Need more information to better analyze your situation.
Answered on Apr 08th, 2013 at 1:32 PM
If you are listed as beneficiary on your spouse's life insurance and it is payable directly to you upon his death, it will not be included as part of his estate and creditors shouldn't be able to get to it.
Answered on Apr 08th, 2013 at 12:45 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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I bills are just in his name you only need to pay the amount that he has assets in his name. In other words, if he has a car just in his name you may need to sell to pay his bills. Unless you sign as personally liable for the bills.
Answered on Apr 08th, 2013 at 12:45 PM
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That is a complicated question. You need to speak with an experienced estate attorney to go over homestead exemptions, policy ownership, policy amount, and available allowances as a surviving spouse under state law. There is not easy answer to your question, aside from you need to speak with an attorney to address options, which may include bankruptcy. Seek out legal assistance sooner rather than later.
Answered on Apr 08th, 2013 at 12:44 PM
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Generally if you are the named beneficiary of the life insurance, it is not consider an estate asset and the estate creditors cannot come after the life insurance.
Answered on Apr 08th, 2013 at 12:44 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You should immediately consult with a estate planning attorney to determine how to title the assets and insurance beneficiaries.
Answered on Apr 08th, 2013 at 12:07 PM
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I'm sorry to learn of your situation. Make sure of the following: 1. You personally did not guarantee the payment of his medical bills 2. The life insurance policy has you listed as a beneficiary. 3. Your spouse has appropriate Medicaid protection planning in place 4. Your spouse has an estate plan in place.
Answered on Apr 08th, 2013 at 12:07 PM