When your loved one passes away, and leaves a life insurance policy behind, you will have to determine whether or not that policy must be used to pay off the decedent's debts.

The easiest way to do this is to find out if the decedent had a designated beneficiary form in place at the time of their death. If they did have this form in place and if at least one of the beneficiaries listed is still alive then the proceeds from the life insurance policy will pass directly to the designated beneficiary and outside probate. This in turn will avoid having to use the insurance money to pay off creditors.

It would be wise to make sure that you've included beneficiary forms for all life insurance policies as part of your estate litigation. Consult with a professional estate litigation Lawyer who can ensure that you have the right estate litigation documents secured to help avoid your assets being used to pay off outstanding debts.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.