Can my creditors go after the proceeds of a life insurance payout I disclaimed?
Posted on Tue Jul 21, 2015, on Estate Planning
From our “Ask a Question” Mailbag: Bucks County Disclaimed Life Insurance and Creditor Claims
Most Recently Updated July 18, 2018.
“Last year, my mother died in Bucks 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 they claim that life insurance money?”
Bucks County Disclaimed Life Insurance and Creditor Claims
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 that you may have 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?
Disclaimers and creditor claims 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: Bucks County Disclaimed Life Insurance and Creditor Claims
I hope that this article was helpful in explaining 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!
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Tags:Bucks County, creditor claims, Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Life Insurance, Pennsylvania