Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Can my creditors go after life insurance policy I disclaimed?

Posted on Mon Jul 6, 2015, on Estate Planning

From our “Ask a Question” Mailbag: Creditors and Disclaimed Life Insurance Proceeds

Most Recently Updated July 16, 2018.

“Last year, my mother died in Montgomery County and named me as beneficiary of her life insurance. As my children were the contingent beneficiaries, I decided to disclaim the inheritance, so the insurance money passed to my children. I was recently in a car accident. If I am sued, can the plaintiffs claim that life insurance money?”

Jointly Owned Property with Children

Creditors and Disclaimed Life Insurance Proceeds

Creditors and Disclaimed Life Insurance Proceeds

No one can force you to take an inheritance. If you properly disclaimed your interest in the life insurance, then you never received it. If you never received it, then any future creditor cannot claim the asset. From your description of the facts, your car accident came after the disclaimer. If so, and if you properly disclaimed, the plaintiff cannot reach the insurance proceeds.

More Planning Questions?

The disclaimer is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: Creditors and Disclaimed Life Insurance Proceeds

I hope that this article was helpful in explaining disclaimers and creditor claims. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

 

Tags:

creditor claims, Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Montgomery County, Pennsylvania

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

Sean Quinn

Great firm. Great people. Happy to refer folks in need to estate planning to Peter and his team. They do great work.

Klenk Law Logo
Stars

Stephen T.

Peter and his staff handled all of our needs in a very professional and timely matter.

Klenk Law Logo
Stars

Christopher F.

Peter explained things in a way that was easy to understand. Everything was done in the time frame he said it. Could not have been better!

Klenk Law Logo
Stars

Sharon S.

I contacted Peter through his website using the free consultation link for a question regarding a will. While I was expecting only a few minutes, it was a lengthy conversation. He made sure he understood the situation by asking many questions before offering advice. He then went through my options and results of each one. He left it up to me to decide if I wanted to proceed and did not push me toward one or another. His website has very useful information which I definitely researched before I called him. While I decided not to proceed at this time, I feel I had enough information to make that decision. I would not hesitate to hire him should I need to in the future.

Klenk Law Logo
Stars

MJG

Affable...yet surprisingly cerebral estate planning atty. High marks all the way around.

Let us put our expertise to work for you.

Free consultation within 24 hours.