Note: The DearEsq free 'ask a lawyer' site is offered as a free informational service to the public and is not intended as legal advice. Laws vary from state-to-state, and in addition every situation is unique, and relevant facts may not be known. The answer to the question posed below may not apply to in your state or to your situation. For legal advice in your state and your situation you should consult with an attorney in your state who is familiar with the rules and laws in your state.
“If I die with credit card debt, can the credit card company seize my life insurance policy from my children to pay off the debt?”
Question: When your estate is settled up after your death, all of your assets, including insurance proceeds, will go to pay funeral expenses, taxes, credit cards, etc. before the rest is distributed to your beneficiaries. If you owe more than you own, unless your children were co-signors, they will not get stuck with the difference.
