Are life insurance proceeds exempt from bankruptcy and divorce?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Are life insurance proceeds exempt from bankruptcy and divorce?
I have a “Total Control Account ” from my mother’s life insurance after she passed. Is this “death benefit” exempt from not only divorce but also for filing for bankruptcy?
Asked on May 16, 2012 under Bankruptcy Law, Wisconsin
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If you are the beneficiary of a life insurance policy with respect to your mother, your receipt of it is a "gift" and is your own separate property. As such, such money would not be subject to a claim as a marital asset in the event of a divorce.
However, as to a bankruptcy proceeding, if you received any monies concerning the bankruptcy filing concerning the insurance policy, you are required under the law to list such as part of your schedule of assets.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.