pc asked:


If I am the beneficiary of life insurance payment after someone dies, do I have to by law use that money to pay off the deceased debts? Or is this something that the bill collectors cannot touch at least legally? How would the creditors even know that there was a payout of life insurance? Anyway for them to know this? Can I get in trouble for not paying?

Darren

cousinbonehead asked:


In the event that someone dies, can their life insurance proceeds be directed a specific way if they leave a note of such wish? If not, what must be done to direct the proceeds of a life insurance settlement so that specific things be done. For example: paying a bill or buying a house for the beneficiary.

Reginald