Q: Can a debt collector come after a beneficiary of a life insurance policy?
My father recently passed away and was a sole owner of a LLC. He was paying a supplier 400 USD a month to settle a debt. Can the supplier go after the benefits my mother is owed from his life insurance policy? She was not listed as an owner or investor in the LLC. Thanks for your help
A: No. A creditor of the LLC or of your father has no standing to go after proceeds of a life insurance policy. The creditor's remedy, if the creditor has one, is to file a claim against the LLC. If your father personally guaranteed the debt or was found personally liable to the creditor in an estate, the creditor may also pursue your father's estate or trust by filing a claim. For further information, get a consult with a probate attorney in your area.
Nina Whitehurst and Kenneth V Zichi agree with this answer
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