Pennsylvania  |  Credit and Debt Law

Legal Question

Asked on: 7/19/11, 6:37 pm

Brother with $20,000 in debts dies leaving a $10,000 life policy naming his other brother as beneficiary. Can decedent's creditors come after other brother?

2 Answers


Answered on: 7/19/11, 6:44 pm by Cary Hall

No -- unless the living brother co-signed or otherwise guaranteed the deceased brother's debts. The life insurance money passes outside of the deceased's estate, so creditors have no claim to it. Hope this helps.

Cary B. Hall, Esquire

Law Offices of Cary B. Hall, L.L.C.

121 East Chestnut Street, Suite 205

Souderton, PA 18964

T: (267) 663-9995

F: (215) 525-4364

cbh@carybhall.com

http://www.carybhall.com


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Law Offices of Cary B. Hall, L.L.C. 25 West Airy Street, Suite 300 Norristown, PA 19401

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Answered on: 7/19/11, 8:43 pm by Rachel Hunter

No. Again, the exception would be that if the surviving brother guaranteed the debts (co-signing a car note for example) or otherwise agreed to be financially responsible, then the creditors could sue. However, the creditors have no claim against the insurance proceeds and the surviving brother can do whatever he wants with the cash.


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