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If the estate is not yet closed and the vehicle has not been transferred to a beneficiary, it is generally a good idea to keep the physical damage coverage intact. In fact, it may be considered to be part of the fiduciary duties of the Personal Representative (Executor) to do so so as to preserve the value of this asset of the estate.
If the vehicle will be operated in the interim by someone, you should most definitely contact the insurance agent for guidance. It may be that the insurance policy addresses the issue of whether or not the liability coverage remains in force for a period of time after the insured's death, but the insurance agent is the best source of information. Alternatively, the person who will be operating it may be able to have the vehicle placed on his/her auto policy, or the existing policy may be able to be endorsed to show the (temporary) operator of it as an additional insured.
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Are life insurance death benefits part of the estate?
It depends on the policy wording but most do NOT form part of the estate. You will need to ask the insurance company.
If life insurance is considered part of an estate is that money used for medical bills and debt?
Life insurance is not considered part of an estate and is not available to pay the decedent's bills and debts. Even if there is no money whatsoever to pay bills, the insurance is not part of the estate. The only exception would be if there were no existing named beneficiaries or if the policy is payable to the estate. But even there, keep in mind that it isn't the "insurance" money that is now available to pay the debts. It is "estate" money, because the proceeds were payable to the estate. The Federal government will include life insurance proceeds as part of the gross estate for federal estate tax purposes, but that does not mean they are actually part of the estate.
Do you have to pay taxes on benefits from a life insurance policy in CT?
The benefits from a life insurance policy are treated as part of the estate and subject to the estate tax. They are not subject to income tax.
Is life insurance considered part of deceased persons estate when money is owed to loan companys?
If the life insurance has a named beneficiary then life insurance benefits are not subject to debtors claims. If there is no beneficiary or the "estate" of the deceased is the named beneficiary, then loan companies can come after the estate.
Is Life Estate part of the deceased's estate?
If life insurance is payable to a beneficiary other than "the estate of ...[the decedent]", proceeds are payable directly to the named beneficiary and do not normally become part of the estate. However, if the designation of beneficiary of the life insurance policy is the estate of the decedent, proceeds do usually become part of the estate.
When is life insurance part of net worth?
Life Insurance goes to a beneficiary, not an estate. Unless the beneficiaries are no longer living.
Is life insurance considered part of an estate?
Generally, no. So long as a beneficiary is designated the Policy does not need to be and should not be included as part of an estate. The Policy proceeds or "death benefit" is the property of the named beneficiary, they are not the property of the deceased and therefore not a part of the decedents estate. Only when the Insured failed to designate a beneficiary or no eligible beneficiary is available would the Life Insurance Policy proceeds revert to the named insured and then be included in the Estate.If the policy was owned by someone other than the deceased, the insurance proceeds will not be part of the estate.Since estate taxes (when applicable) can be as high as 55% and the claims of creditors can take an entire estate, it is very important to consult an experienced lawyer prior buying any life insurance policy to ensure that the proceeds go to the heirs and not to pay taxes or the deceased's creditors.
In California if a person is deceased who is responsible for medical debt?
The estate is responsible. It may become part of the spouse's responsibilities depending on the insurance and the estate.
Who pays hospital bills of the deceased father are the beneficiaries of the life insurance responsible?
The estate or actually the executor of the estate is responsible for medical and other expenses as part of the distribution of the estate. After all debts have been paid from the proceeds of liquidation of the estate only then can funds be distributed to beneficiaries. The executor of the estate and beneficiaries of the estate need not pay anything out of their own pocket if the estate cannot pay for the entire bill. But if the expenses are not paid the hospital will certainly come after the estate and any monies that were distributed. Check the terms of the life insurance. If payment is assigned directly to the beneficiaries you may not need disburse funds to the hospital. On the other hand, if the life insurance goes to the estate, the hospital must be paid first if you don't want to end up in court.
Life insurance part of estate?
Life Insurance and EstatesNO, not if the named beneficiary is not deceased. The proceeds of a life insurance policy belong to the named beneficiary not to the deceased. It should not under any circumstances be included in the estate of a deceased or the probate process. If no beneficiary is named or if all beneficiaries are deceased then their is no alternative. When their is no named beneficiary then the value of the life insurance policy reverts to the insured and must then be included as part of the deceased estate
Does life insurance become part of the estate?
The proceeds of a life insurance policy become part of the deceased's estate under limited circumstances: 1. If the named beneficiary on the policy is the estate of the insured; 2. If the named beneficiary and any contingent beneficiary(ies) predecease the insured or otherwise relinquish their interest in the proceeds.
What if there is no will or beneficiary on a life insurance policy of the deceased?
The policy proceeds will become part of the decedent's estate.
