Are Insurance Proceeds subject to decedent's creditors?

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Question:
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Category: Probate, Trusts, Wills & Estates
Location: NJ
Subject: intestate

When a person dies intestate and owes money, is insurance subject to garnishment. There was a salary garnishment in place at the time of death.


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Reply:
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Category: Probate, Trusts, Wills & Estates
Location: NJ
Subject: Re: intestate

If the insurance policy names a specific beneficiary, other than the estate, the policy proceeds pass outside of the estate. Therefore, the creditor would not have a claim against the named beneficiary. If there is not a named beneficiary, or if the estate is named as a beneficiary, the creditor could have a claim against the policy proceeds in the estate.

My website contains other estate administration information: http://www.taxesq.com/

I hope this helps!