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

Susan W.

Tremendous firm with bright, kind and tenacious people. Great representation for our family.

Klenk Law Logo
Stars

Maxine G.

Peter Klenk made a complex subject understandable and allowed us to move forward with our estate planning. He was patient with our questions and creative in the solutions he proposed.

Klenk Law Logo
Stars

Klenk Law is an exceptional practice. Their fine lawyers and staff team up to produce excellent results for their clients. They excel at explaining the often cryptic laws and policies that govern estate planning right down to the complexities of the various "trust" frameworks. Peter himself manages each client together with his great team, and he has a rare quality to be both a walking encyclopedia of planning minutia and also one of the most likable lawyers I have ever had the pleasure of dealing with. He is truly generous in intellect and in his personal approach to getting the "big picture" for complex family structures. I trust him implicitly to help me make the right choices for the future. In short, Klenk Law is a gem of a firm.

Klenk Law Logo
Stars

A.R.

Peter and his associates made things easy for us.

Klenk Law Logo
Stars

Chantee C.

Peter recently gave a presentation about Wills & Trusts at my employer, and it was fantastic! He was extremely knowledgeable and provided valuable information to the group. People were very engaged and asked several questions, all of which Peter thoroughly answered. Personally, my husband and I have selected Peter to help us with our estate planning, and he has been very helpful in providing us with all of the information we need to provide a secure future for our family. Thank you, Peter!

Let us put our expertise to work for you.

Free consultation within 24 hours.