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Life insurance question
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Cat_Loving_Lady
Posts: 74 Forumite
Does anyone know if Life Insurance forms part of the estate once someone has passed away. Can any debts be claimed from it.
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Cat_Loving_Lady wrote: »Does anyone know if Life Insurance forms part of the estate once someone has passed away. Can any debts be claimed from it.
When my parents died, their life policies formed part of their estate.0 -
Cat_Loving_Lady wrote: »Does anyone know if Life Insurance forms part of the estate once someone has passed away. Can any debts be claimed from it.
Depends on how the policy is set up.
If there is no trust in place or it is not written on "life of another" then it will be paid into the estate. Debts obviously go against the estate. So, the amount would be used against debts. Typically, this is what happens when life assurance for mortgages.
If the policy is in trust or written on "life of another" then the money is not paid into the estate.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Does any money owed to the taxman through the deceased persons company come from the estate ?0
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A debt is a debt. Whether it be a loan, a bill to a trademan or a tax bill. All debts should be paid from the estate.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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