Legal Question in Wills and Trusts in Pennsylvania

NO! Life insurance proceeds go directly to the beneficiaries who are named as the recipients. The beneficiaries do not have to use a penny of this to pay the debts.

There is a caveat - if the deceased did not name a beneficiary or if the proceeds are payable only to the estate of the deceased then the funds must be used to pay any claims against the estate. Claims are paid in order of priority if there are insufficient assets in the estate. Otherwise, if there is enough money, then all claims are satisfied and the heirs get what is left.